Now a multimillion-dollar business, Oil Stop has Petaluma roots

To an average customer, the Oil Stop at E. Washington Street probably doesn’t elicit much attention. Unassuming and utilitarian, the building represents just another errand to run, another thing to check off the to-do list.

But to senior company employees, the shop is more than meets the eye. This is the original Oil Stop, now a growing company boasting more than two dozen locations across four western states.

“Most people don’t realize it was started here, 33 years ago,” said Gary Woo, the company’s director for marketing and franchising.

Founded by Larry Dahl in 1988, the oil change business known for allowing customers to stay in their cars while mechanics get to work now employs 400 people, and its corporate headquarters remains firmly planted in Petaluma.

Yet the company’s Petaluma birthplace is attributed more to good luck and opportune timing than anything else. If it wasn’t for an abandoned gas station whose owners were willing to sell at an affordable price, Dahl likely would have settled somewhere else in Northern California.

Motivated with an idea to merge the concepts behind his two businesses – a drive-thru car wash and an oil change shop – Dahl began looking for real estate beyond his home base, six hours north in Medford, Oregon.

He had several options in California, Woo said, but the stars aligned for the property at 601 E. Washington Street.

“Then, as of now, it was a very busy street,” Woo said. “I think he looked at the price, and I think he also looked at its proximity to Medford, because his family was still there.”

For the first year, Dahl lived at the Petaluma KOA campground a few miles down the road, Woo said, before his wife moved down to join him.

Even as the company expanded, opening another Petaluma location on Lakeville Street and four more across Sonoma County, the couple stayed in the Petaluma area for more than two decades, raising a family while overseeing the business.

“To think he started off like that, and now we’re a $30-$40 million company a year,” said Woo, who has been with the company for 14 years. “He started it with a lot of energy and a lot of work.”

Ten of the 25 locations are franchised, and Woo said several locations serve more than 100 cars each day, with some producing annual sales topping $3 million.

The bulk of the shops are scattered across California, with one each in Arizona, and New Mexico and three in Oregon. The company is still growing, Woo said.

“We have two more locations waiting to be opened in Oregon, and a number of letters of intent out for others,” he said. “We are definitely in growth mode now.”

Dahl and his wife recently moved to Hawaii to enjoy their retirement, and was unavailable for an interview. But Woo said the company’s founder fell in love with the town, and after establishing his first few stores in the area, chose to put down roots in the North Bay community.

Dahl sold the company two years ago. It is now under the control of new owners Ryan Callaghan and Nicholas Parisi. But despite the recent changes, Woo is confident that Petaluma will remain the company’s home.

“I think that over the years, Larry has met a lot of Petalumans,” Woo said. “He was always at the stores, talking to people sitting in their cars waiting to be serviced. I think there are a lot of people out there who’ve met him.”

Editor’s Note: This story has been updated to clarify annual sales for some locations.

Contact Kathryn Palmer at kathryn.palmer@arguscourier.com, on Twitter @KathrynPlmr.