APRIL 2020 FORBES AFRICA| 71FORBESAFRICA
CONTRARIAN• YAAKOUB HIJAZIFORBESAFRICA.COMPhoto byTim Pannell for Forbes
I threwmytextbook
out,whichwasa
littleoverboard...
I toldmymother
thereis nowayI
can go back.I
DIDN’TWANTMYFATHER’SNAMETOBE
tarnished,”saysYaakoubHijazi,presidentof
Paterson,NewJersey-basedStarLaundry.When
hisfather,Youssef,diedin2011,fourmonths
afterbeingdiagnosedwithlungcancer,Hijaziwasa
19-year-oldstudentatMontclairStateUniversity.He
soonlearnedthathisdad’s$4million(sales)commercial
laundryanddry-cleaningbusinesswasonthebrink
ofcollapse.“Whenyougobankrupt,yournameis
destroyed,”hesays.
SoHijazi,now27,ditchedschooltorescueStar
Laundry.“Ithrewmytextbookout,whichwasa little
overboard,”hesays.“Itoldmymotherthere is no way I
cangoback.”
Sincethen,Hijazi,whoison2019’s
Forbes 30 Under 30 inManufacturing
&Industry,hasnotonlyprotectedhis
father’slegacy;he’sbuiltthebusinessinto
a powerhouseinthetight-knitworldof
hotellaunderersinNewYork.Today,Star
Laundrycleanssheetsandtowelsformore
than 100 ofthecity’sroughly 800 hotels,
includingtheConradNewYorkandtheW
TimesSquare.BasedonForbes’estimates,
ithandlesasmuchas40%ofthelaundry
generatedbythecity’shotels,bringingin
some$70milliona yearinrevenue.Add
inHijazi’sotherventures,includingreal
estateinNewJerseyandlinenmanufacturinginBenin,
Africa,andhisgroup’sannualrevenueiscloserto$120
million.
Laundryisa cutthroatbusiness,pricedat 30 centsto
45 centsperpoundinNewYork.Pricecuttingtogain
marketshareisrampant.Stumblesabound.Prestige
Industries,onceHijazi’sbiggestcompetitor,filedfor
Chapter 11 bankruptcyin2017,anditsassetswere
subsequentlyboughtbya private-equityfirmthatowns
laundryfirmPure-TexSolutions.
“Theentiremarketisfightingoverthesame 200
hotels,”saysSangCho,CEOofPrestigeuntil2012,who
foundedCooperativeLaundryin2018.“We’veheard
someofourcompetitorsbiddingbelow 27 or 28 centsa
pound,whichiscrazy.”
Hijazi,whoowns100%ofStar,wooedcustomersby
beingpersonallyoncallstartingat3.30AMandsetting
ratesinthemid-to-upperrangetoattracthotelswhile
maintainingprofitability.“Oursellingpointisquality,”
he says. “That’s why we have no salesmen.”Ona NovembervisittothePatersonheadquarters,Hijazi
showedoffoneofhisfourgianttunnelwashers.Thedirty
linensarrivein800-poundbinslabeled“StarLaundryBaba
Joe1948–2011”forhisdad.Next,135-poundloadspass
throughmodulesthatscourdirtwith180-degreewater
andbrightencolorswithhydrogenperoxideandsixto 11
otherchemicals.Separatecompartmentsinthetunneland
computercodingallowmultiplehotels’linenstobewashed
atthesametime.
ThoughHijazigrewup 20 minutesfromtheplant,in
MontclairHeights,heneverintendedtoworkthere.“He
didn’tevenwantmeinit,”Hijazisaysofhisfather,who
came from Lebanonat 17 andopenedrestaurants,including
StarDeli,beforemovingintothe
laundrybusiness.Helatermovedthat
fromBrooklyntoNewJersey,where
laborcostswerelowerandunionrules
morelax.
WhenHijazitookover,hegot
hitwitha lot.“Andwhenyou’re 19
yearsold,peoplearenotgoingto
listentowhatyousay,”herecalls.
Thecompanyfaceda cashcrunch,
sewerliens,taxliensandfinesfrom
thefederalOccupationalSafetyand
HealthAdministration.Hijaziborrowed
$300,000topayoffeverything,ditched
themiddlingdry-cleaningbusinessand
hiredanOSHAconsultanttoaddressthesafetyissues.
Callingonhotels,heusedhisyouthasa sellingpoint.He
signedontheDoubleTreeonLexingtonin2012,thentalked
hiswayintootherhotels,includingtheWestinTimesSquare:
“Hotelsrealizedtheywerecuttingcostsandgettingcrap
service.”
DonFraser,a longtimehotelexecutivethenrunningthe
ParkCentralandWestHousehotels,hiredStarin 2016 to
handletheirnearly5 millionpoundsoflaundrya year.“He
was—Idon’twanttosaypicky,buthewasveryselective
[about]hishotels,”Frasersays.ThoughlocatedinNewJersey,
HijazifocusedonlargeandluxuryhotelsinManhattan,where
occupancyratesarehighandsteady.
Thathelpedinsulatehimfrompricingpressuresandlet
himcreatedelivery-routeefficiencies.
Thelonghourstakea toll.HijaziisintalkstosellStar
Laundry.Hedeclinestodiscussdetails,butForbesestimates
thebusinesscouldbeworthatleast$150million.
“Thebiggestfear,”hesays,“isselling what my father
started. It’s an emotional fear.”