Key Take Aways from The Car Wash Show – Nashville 2024

The car wash industry is experiencing shifts in consumer preferences towards professional services and express models, improved labor efficiency due to subscription models, and evolving business sentiments.

Takeaways

  • Employees per location decreased by about 15%
  • Revenue per store nearly doubled.
  • Significant increase in professional car washing since the 90s.
  • Overall customer satisfaction shows subscribers have higher satisfaction.
  • Shift from full serve to express exterior car wash models.
  • Consumers appreciate having car wash businesses in their community.
  • Less than half of the people consider car washing a good career choice.
  • Store-level profitability is on the rise, particularly due to strong subscription sales.

Highlights

– ` “The home car washer, while not extinct, it’s almost becoming a novelty.” `

Chapters & Topics

1. Labor Efficiency and Revenue

> In the observed data set, labor efficiency has improved with a 15% reduction in employees per location, while revenue per store has nearly doubled, influenced by the subscription model’s popularity.

– Improvement attributed to the subscription model.

2. Shift in Car Washing Preferences

> There has been a significant shift from driveway washing to professional car washing over the decades, with professional washing increasing from 45% in the 90s to 80% recently.

– Driveway washing is becoming a novelty.

3. Subscription Program and Membership Satisfaction

> The research indicates a consistent improvement in satisfaction levels for both subscribers and non-members, with subscribers generally showing higher satisfaction.

– Overall customer satisfaction shows subscribers (red line) have higher satisfaction in the 80% range compared to a la carte retail customers (blue line).

– The data, although only covering a few years, shows a small but consistent improvement in satisfaction for both subscribers and non-members.

4. Car Wash Model Utilization Trends

> There has been a noticeable shift from full serve to express exterior car wash models, influenced possibly by the COVID-19 pandemic and changing consumer preferences.

– Initially, full serve was the preferred model in 2016, but there has been a consistent shift towards express exterior models.

– The decrease in full serve usage might be due to an increase in express stores and a shift in consumer behavior during COVID-19 towards safer, minimal contact services.

5. Consumer Perceptions and Community Impact

> Consumers view car wash businesses positively, indicating a strong community presence and a desire for more convenience and services.

– Consumers appreciate having car wash businesses in their community and perceive them as positive contributors to the community.

– There is a strong consumer demand for more car wash locations, driven by convenience.

6. Car Wash Industry Employment Perception

> The perception of car washing as a career choice has improved, but there remains significant room for enhancing its image and attracting skilled workers.

– Less than half of the people consider car washing a good career choice, though this perception has improved compared to 20 years ago.

– There is a need to better communicate the benefits, compensation packages, and career paths available in the car wash industry.

7. Store-Level Performance and Pricing Strategies

> Store profitability is growing, driven by strong subscription sales, while pricing strategies show a cautious approach with fewer retailers planning to increase prices in the next 12 months.

– Store-level profitability is on the rise, particularly due to strong subscription sales.

– 60% of retailers reported having increased prices in the past 12 months, but less than half plan to do so in the next 12 months.

8. Industry Insights and Future Outlook

> Despite challenges, there is a sense of duty among business leaders to remain optimistic and continue driving growth, particularly in niche markets like specialized car wash equipment.

– Business leaders feel a duty to remain optimistic and drive growth despite economic uncertainties.

– Niche suppliers like specialized car wash equipment providers maintain a positive outlook and see opportunities for growth.