Car washes are becoming increasingly common across the United States, fueled by investments and a shift to subscription-based models. This surge has led to concerns in some communities about over saturation. For instance, in Streetsboro, Ohio, where cars are a significant part of the local landscape, Mayor Glenn Broska has received complaints from residents about the abundance of car washes. The town enacted a moratorium on new car wash businesses in response to these concerns.
Similar saturation bans have been implemented in other cities, including Stow and Parma in northeast Ohio, as well as in Buffalo, New York. Even places like New Jersey, Louisiana, and Alaska are experiencing their own car wash booms as national chains expand.
However, despite the pushback from some communities, investors see the car wash industry as a lucrative opportunity. With an estimated $14 billion market size and approximately 60,000 locations across the country, the sector has been growing at around 5% annually.
This growth is attributed to several factors, including a shift away from DIY car care habits and an increasing preference for professional car wash services. Additionally, the COVID-19 pandemic did not significantly impact car wash usage, indicating the industry’s resilience.
Investment groups have been actively acquiring or building new sites, with over $750 million invested in expansion plans in recent years. This surge in investment reflects optimism about the industry’s scalability and potential for high returns.
One key innovation driving the growth of the car wash industry is the adoption of membership and subscription-based models. Chains like Mister Car Wash offer monthly membership plans that provide customers with unlimited washes for a flat fee. This subscription-based approach has proven to be profitable, as it encourages frequent usage and generates recurring revenue.
Moreover, advancements in technology and automation have transformed the car wash business, making it more efficient and cost-effective. Automated payment kiosks and express exterior models have become increasingly popular, allowing owners to reduce labor costs and streamline operations.
Despite concerns about overbuilding and saturation in some areas, industry experts remain bullish about the long-term prospects of the car wash market. With a growing number of consumers opting for professional car wash services and the potential for international expansion, the future looks bright for the car wash industry.
