Jiffy Lube

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Jiffy Lube International, Inc.
Type Wholly owned subsidiary
Industry Automotive Services
Founded 1979 (1979)
Headquarters Houston, Texas, U.S.
Number of locations over 2,200 (2008)[1]
Key people Stu Crum, President
Peter Walsh, President North American Stores
Owners Pennzoil
Parent Shell Oil Company
Website www.jiffylube.com

Jiffy Lube is a chain of over 2,000 businesses in North America offering oil changes and other automotive services. The company is based in Houston, Texas, and is a subsidiary of Shell Oil.

A Jiffy Lube in Durham, North Carolina

Overview[edit]

Jiffy Lube consists of more than 2,000 franchised service centers throughout North America and Canada, serving approximately 24 million customers each year.[2] Jiffy Lube service centers are 100% franchise-owned, independently owned and operated by 252 entity groups. Headquartered in Houston, Texas, Jiffy Lube is a wholly owned, indirect subsidiary of the Shell Oil Company.[citation needed] The company was ranked first on National Oil and Lube News 2011 Tops in the Fast Lubes Industry Rankings.[3] Also, Jiffy Lube was ranked number 15 in Entrepreneur Magazine’s 2012 Franchise 500[4] and number 73 on Franchise Times 2011 Top 200 Franchise Chains by Worldwide Sales.[5]

History[edit]

The first Jiffy Lube store was established on 36th Street in Ogden, Utah by Edwin H. Washburn as early as 1971.[6] Over the following years, Washburn franchised a number of Jiffy Lube centers in within Utah. In 1979, then-football coach at Western Maryland College W. James Hindman bought out Washburn's seven franchises[7] and established Jiffy Lube International, relocating to Baltimore, Maryland. It is this year which Jiffy Lube generally states as its founding date with Hindman as its founder.[8]

Jiffy Lube went public in 1987, and had opened 1,020 franchises and company stores by 1989. At this point, Jiffy Lube posted a $39 million loss on $350 million in sales and declared bankruptcy. This is the equivalent of $74.2 million and $666 million respectively in present day terms.[9] In 1991, Jiffy Lube became a subsidiary of Pennzoil.[10]

Following the merger of Pennzoil and Quaker State in 1998, the 581 Q Lube stores were merged into the Jiffy Lube brand, then possessing 1,541 stores, with overlapping operations being closed down.[10] Pennzoil-Quaker State was ultimately purchased by Shell Oil in 2002.[11]

Services[edit]

In June 2011, Jiffy Lube introduced a new program called Oil Change Schedule (OCS). The new program allows Jiffy Lube customers to choose how often they have their oil changed based on a number of variables including vehicle manufacturer recommendations, driving habits, and road conditions. The OCS program moves away from the old model of changing oil every 3,000 miles and provides a schedule that is unique for each driver.[12]

Controversy[edit]

In 2003, Jiffy Lube was the focus of a KNBC investigative report that alleged that Jiffy Lube was charging customers for services not performed. During the investigation, five out of nine Jiffy Lube locations charged undercover reporters for work that was not performed.[13] After the investigation aired, Jiffy Lube claimed to perform sweeping changes to their training program to prevent this; however, according to an interviewee, those training changes included how to spot investigative journalists. At the end of the investigation, Jiffy Lube installed cameras in their stores to allow customers to observe repairs.[14][15]

In 2009, Jiffy Lube was found to be performing repair procedures on vehicles that were recommended against by the manufacturer due to the potential to cause engine damage. These procedures included engine flushes and fuel injection cleaning which can cause engine and fuel injection problems.[16]

In May 2013, Los Angeles Jiffy Lube locations were again the subject of an KNBC investigation. The station reported that not only had fraudulent practices again been detected at the majority of investigated Southern California Jiffy Lube stores, but the current fraud was worse than that found in the original investigation.[17]

See also[edit]

References[edit]

  1. ^ Hohmann, George (2008-06-12). "Jiffy Lube locations in W.Va. shut down". Charleston Daily Mail. p. P9A. 
  2. ^ "Spectrio Case Study: Jiffy Lube International, Inc.". Spectrio. Retrieved 4 May 2012. 
  3. ^ "2011 TOPS in the INDUSTRY RANKINGS A publication of National Oil & Lube News". National Oil & Lube News. Retrieved 4 May 2012. 
  4. ^ "2012 Franchise 500 Rankings". Entrepreneur. Retrieved 4 May 2012. 
  5. ^ "2011 Top Franchise Times TOP 200™ Franchise Systems". Franchise Times: 52. October 2011. Retrieved 4 May 2012. 
  6. ^ Francis, JaNae (2001-01-17). "Ogden, Utah, Site of Original Jiffy Lube Goes Up in Flames". Ogden Standard-Examiner. 
  7. ^ Hinden, Stan (1986-06-16). "Jiffy Lube, 'McDonald's of the Car-Service Industry,' Goes Public". The Washington Post. p. 39. 
  8. ^ House, Dawn (2009-02-13). "Jiffy Lube traces its history to Ogden". The Salt Lake Tribune. 
  9. ^ Consumer Price Index (estimate) 1800–2014. Federal Reserve Bank of Minneapolis. Retrieved February 27, 2014.
  10. ^ a b Wirebach, John (October 2001). "Fast times for fast lubes". Aftermarket Business (Cleveland, Ohio: Advanstar Communications) 111 (10): 1. ISSN 0892-1121. OCLC 300286805. 
  11. ^ Colbert, Catherine (April 1, 2010). "Jiffy Lube International, Inc.". Hoover's Company Records. 
  12. ^ "The Man at the Top (Continued)". National Oil & Lube News. Retrieved 4 May 2012. 
  13. ^ Joel Grover (August 27, 2006). "KNBC Undercover Jiffy Lube Investigation (Jiffy Lube Scam Caught on Tape!)". youtube.com. Retrieved February 27, 2013. 
  14. ^ Grover, Joel; Goldberg, Matt. "Is Your Mechanic Cheating?". NBC Los Angeles. Retrieved 2011-08-03. 
  15. ^ Grover, Joel; Goldberg, Matt. "Is Your Mechanic Cheating? Part 2". NBC Los Angeles. Retrieved 2011-08-03. 
  16. ^ Joel Grover; Matt Goldberg (January 26, 2009). "Could This Damage Your Car?". nbclosangeles.com. Retrieved February 27, 2013. 
  17. ^ Grover, Joel; Henao, Chris; Drechsler, Phil (14 May 2013). ""You Were Robbed": NBC4 I-Team Exposes New "Tricks and Tactics" at Jiffy Lube Stores". NBC4 Los Angeles. Retrieved 16 May 2013.