Kings of junk Locals grow hauling service into a multi-million dollar company

After graduating college, Andreacchi and Reardon became roommates and established a business in their garage. With Andreacchi’s advertising experience and Reardon’s marketing approach, the two formed the local franchise Junk King in 2005, a San Carlosbased junk removal and hauling service company.

Four years later after laying the groundwork for their model of structure and efficiency, the duo decided to go national and one thing led to another. After 18 months, the growing company franchised 33 partners in United States, including one in [Panama City] Central America. Andreacchi, chief operating officer of Junk King, predicts 10 to 15 franchises will be added at the end of the year.

"We put ourselves in a position where the consumer can see us,” Andreacchi said. "We document our business model from a marketing standpoint for customers to learn and grow from.”

Andreacchi formerly worked for the company’s leading national competitor, 1-800-GOT-JUNK, a Canadabased junk collection company. He saw the need to create, expand and franchise a company that would differentiate itself from competitors.

"I saw there was room for growth in this field,” Andreacchi said. "We wanted to create a company that services bigger trucks and larger territories at a better competitive price. We made a point to evolve 100 percent around customer service and place a high value on not only throwing away junk but recycling it as well.”

Reardon, chief executive officer of Junk King, said the company’s annual revenue for junk removal is $1.1 million and for franchise partners between $6 million to $8 million. Junk King’s revenue is growing 15 percent each year despite the economic recession, he said.

"Our principle is to give people the opportunity to be their own business owners and evolve a brand nationally and internationally around recycling,” Andreacchi said. "Our mission is to build long-lasting relationships with valued customers.”

Andreacchi said 60 percent of the material collected is recycled; however, many times the junk is not reused, donated or taken to a landfill. Instead, Junk King finds alternate recycling avenues to transfer junk, such as EWaste, a custom electronics recycling service, and American Metal Group, a metal recycling business. These companies have become a reliable source of collecting and recycling furniture, appliances, technological devices and various debris for business, government and residential companies, they said.

Andreacchi added that 40 percent of waste goes to a transfer station and not a landfill. Items not transferred are located to Blue Line Transfer in South San Francisco. Furthermore, more than 908 tons are saved from local landfills, he said.

"We conduct environmental audits regionally in North America,” Andreacchi said. "Our franchises track what we collect locally and where the junk goes, whether it’s recycled, reclaimed, reused, converted to energy or goes to landfills.”

Junk is a big business in North America because Americans are consumers, Andreacchi said. Americans like to fill their homes with new and fun items which doesn’t create a lot of space.

"Not everything we pick up is garbage, which is why it is recycled,” Andreacchi said. "One man’s junk is really another man’s treasure. Vendors like certain items saved for them.”

Junk King also donates used items to charities and nonprofit organizations: Goodwill, Habitat for Humanity, San Carlos Educational Foundation, building projects and others.

"We donate our trucks with a face value of $300 to $500 to local schools for auctioning,” Reardon said. "The proceeds made from these event goes to nonprofit organizations.”