The founders and co-CEOs of fast food chain Panda Express have shifted their attention from Asian cuisine to pressed shirts. Andrew and Peggy Cherng recently announced their investment in the $8 billion U.S. dry cleaning industry with a new venture called Panda Dry cleaning. The duo has partnered with consumer goods leader Procter & Gamble and plan on opening over 200 stores throughout the U.S. within the next five years.
Through a franchised relationship, the chain of dry cleaning stores will operate under the name Tide Dry Cleaners, hopefully giving consumers brand recognition of Proctor & Gamble’s popular laundry detergent.
The first storefront has recently opened in Nevada and test locations are set for Arizona, California, Las Vegas, Portland and Seattle. The Cherngs are focusing on tackling the dry cleaning market on the west coast but hope to eventually open stores all over the nation.
This concept may seem interesting to many consumers but clearly not everyone is thrilled with the idea of a new dry cleaning chain. Traditionally, most dry cleaners are family owned businesses passed on from generation to generation. We believe that a chain dry cleaner would deplete the value of a mom-and-pop store. Ray Rangwala, owner of Esteem Cleaners in Pasadena and member of the board of directors for the California Cleaners Association agrees. Times are already tough for independent dry cleaners as a result of the struggling economy, he said, and increased competition will only make it worse.
Many dry cleaners are left wondering how to combat the competition if a Tide Dry Cleaners opens in their neighborhood. We strongly believe that each cleaner that has been in business for several years is doing something right. There are unique touches that cleaners put on garments that keep their customers coming back. Whether its excellent customer service, eco-friendly methods or taking excellent care of items, customers really do appreciate it.
In addition, the Tide Dry Cleaners aren’t promising anything new that we at Z Cleaners and those in the industry don’t already know or use, such as same day delivery service, all day drop boxes and dry cleaning vending machines or ATMs. The only distinction that Tide Dry Cleaners offers is standardize service throughout all their stores. But as we in the business know, there is nothing standard about dry cleaning; each garment can be different and more challenging to clean than the next.
In the end, those in the dry cleaning business are doing what they do best, which is master the art of dry cleaning. So while small businesses should be alert of this national chain, they should not be worried, their loyal customers will not stray away from the quality of work that is delivered. With that said, dry cleaning clothes is nothing like delivering fast food and the Cherngs have openly admitted that they don’t have any experience in dry cleaning and are trying to learn very quickly.
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