On the record with John Mattioli of Dry Clean City

John Mattioli spent a total of 23 years as a corporate merchandising executive at Parisian in Birmingham, a job from which he was laid off twice after outside companies bought the retail chain.

The first time, when Proffits acquired Parisian in 1998, Mattioli stayed in the retail field, working in merchandising at Rogers Trading Co. for a year before being rehired as a senior buyer at Parisian.

When North Carolina-based Belk Inc. bought Parisian in 2006 and Mattioli was laid off again, he decided it was time to make a completely different career move. In March 2007, Mattioli and his wife, Holly, acquired Dry Clean City, a discount dry cleaning business on U.S. 31 in Vestavia Hills.

Using a Parisian-like customer service strategy, Mattioli said he and his wife transformed a business he called “a true diamond in the rough” by reorganizing the way it was run and developing a more efficient dry-cleaning process.

Five years later, Mattioli says Dry Clean City has been able to maneuver its way through the economic downturn by filling a niche for folks looking to save money. In an interview, he talked about what led him to go into the dry cleaning business for his first entrepreneurial venture, and his thoughts on how the return of $4 a gallon gasoline may affect consumer spending habits.

Was it a difficult transition from working as a manager at a clothing retailer to running a dry cleaning business?

It was a major adjustment for me because I went from a large corporate office environment with many layers of management and layers of support departments to having to be responsible for my entire organization. I was now in charge of everything from being the maintenance man, all the way up to being the CEO and everything else in between.

All of those corporate support departments such as accounting, marketing, human resources, IT computer support, et cetera, were all gone. It was now up to my wife, Holly, and me to become the experts in all facets of running a business.

How did you pick dry cleaning of all industries to choose your first business venture?

After getting over the shock of losing my job due to the Parisian buyout, I initially started looking for work at other retailers. I ended up with a really good offer, but it was with a retailer based in Wisconsin. It just didn’t feel right, so my wife and I decided it was time to run our own business.

We had absolutely no idea what type of business we wanted to own, but we knew it had to be a service business. I spent the next six months doing research, meeting with local business brokers, talking with franchisers, meeting with owners interested in selling their business.

We found several businesses that we were interested in, a commercial lawn maintenance service, a clothing consignment store, a chain of exercise centers, and even a computer service business. These were all successful profitable businesses, but they just didn’t give us that warm and fuzzy feeling.

On a Sunday in December 2006, I saw a classified ad in The Birmingham News for a discount dry cleaner in Vestavia Hills, that was for sale by owner. I met with the owners, did lots of research, and we decided to make an offer for the business.

What lessons did you learn as a clothing company executive that help you in running a business?

I knew that planning the business was a crucial step in order for it to be successful. Without well thought out plans, you really are flying by the seat of your pants. I am always planning and monitoring my revenue and expense projections.

I learned a long time ago that “If you fail to plan, then you plan to fail.” I also learned from Parisian the importance of treating the customers the way you would like to be treated, and building relationships with them.

People like doing business with people they like and trust. Another strategy that I learned and applied to my business is to stay focused on what separates you from your competitors and consistently take that message to your customers in all of your marketing and in store signage.

Have you found that operating a discount dry cleaning service has helped due to the fact the nation was in a recession most of your five years in business so far?

Yes, I do believe that our business has hit a sweet spot and prospered due to the economy. People want to feel like they are getting as much value as possible for their hard earned money. We have a unique value formula, a high level of service with a low level of price.

Have you seen high gasoline prices affect consumer spending habits so far – in other words, have you seen an increase in business?

We have not seen any recent change in our sales trend since gas prices started to climb again. Although, based on the last time gas prices got close to $4 a gallon, I would expect a stronger summer sales level this year because less people will be leaving town for vacation.

What advice can you offer to folks considering moving from the corporate world to entrepreneurship?

You have to change your mind-set. Having a job and working for someone else is nothing like working for yourself. If you want to be an entrepreneur you have to be 100 percent committed to your venture. That commitment may mean that you will need to work as many hours as it takes to get the job done.

You will need to have passion for your business, so find a business that is interesting to you. Save your money and do as much research as possible before making any binding decisions. I would recommend buying an existing business as opposed to starting a business from scratch.

If you buy an existing business you have a history of what the revenue, expenses, and cash flow are. If you start from scratch, you won’t have enough cash flow from the business to draw a salary from, so you will need to live off of your savings for at least a year or more.

After you decide on a business, do a detailed business plan for your first three years of business and review the plan with your accountant for their opinion. If the plan makes sense, is conservative, and shows that you will make enough profit to pay yourself, than you are ready to make the decision on becoming an entrepreneur.

Age: 56

Title: Owner.

Hometown: Tampa.

Education: Took pre-med courses for two years at Hillsborough Community College.

Work history: Began professional career as a cook at restaurant in Tampa, then moved way into management by age 20. Spent eight years as manager and buyer of men’s sportswear at Tampa department store before joining Parisian in Birmingham in 1983 as a buyer. Spent 23 years at Parisian before losing his job when Saks Inc. sold the chain to Belk. Bought Dry Clean City in March 2007.

Most recently read book: “The Richest Man in Babylon,” by George S. Clason.

In my iPod: No iPod, but enjoys music by Eric Clapton, Neil Young, and assorted rock, jazz and blues artists.

Family: Wife, Holly, sons Brian, 31, and Jared, 28. Three grandsons aged 5 months to 3 years.

John Mattioli at Dry Clean City 03-01-12 John Mattioli talks about his transition from executive at Parisian to owning Dry Clean City in Vestavia Hills. He and his wife, Holly, decided they wanted to stay in the Birmingham area and own a service business. Watch video