Car Washes

The car wash industry in the US includes 14,000 full-service car washes with combined annual revenue of about $5 billion. Large chains include Wash Depot, Oasis Car Wash, and Autobell Car Wash. The industry is highly fragmented: the 50 largest companies hold just 15 percent of the market.

COMPETITIVE LANDSCAPE

Demand is driven by favorable weather, new car sales, and growth in consumer income. The profitability of individual firms depends on favorable location and efficient operations. There are few economies of scale. Chains have advantages in advertising and customer recognition. Small firms can compete successfully by having good locations. The industry is highly labor-intensive: annual revenue per employee is just $40,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are exterior wash, exterior and interior cleaning, waxing, underside cleaning, vacuuming, and premium "detailing." Ancillary products and services such as pick-up/drop-off services, fast food, greeting cards, and automotive products are also offered at some locations. "Detailing" services consist of intensive interior and exterior cleaning, and waxing and polishing by hand.

There are three types of car washes: a conveyor or "tunnel" wash system, where the car is pulled through a tunnel lined with washing equipment; an in-bay automatic or "rollover" wash system, where the car is parked in a bay and the washing equipment moves over the car; and a self-service or "wand" wash system, where the car is parked in a bay and the customer manually washes the car with ...