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New Features Help C-store Car Washes Keep the Revenue Rolling

In-bay automatic, touchless washes and subscriptions are dominating the space.
12/6/2024
 A car wash at Family Express
Family Express offers car washes at nearly 50% of its locations.

NATIONAL REPORT — When it comes to high-margin profit centers in the convenience store industry, a car wash certainly ranks toward the top of the list, with the latest trends in the space involving equipment upgrades and subscription models.

"We have been offering car washes for over 30 years. We currently have car washes at about 50% of our locations," said Ryan Fasel, director of marketing at Valparaiso, Ind.-based Family Express Corp., a chain of more than 80 c-stores that offers subscription options at its car wash locations. "With the continued addition of car washes at existing locations, and car washes being a key feature for upcoming new-to-industry sites, our goal is to offer car washes [at] the majority of our locations."

There are certain trends in car washing that continue to pick up steam, including the change to in-bay automatic systems where the vehicle stays stationary in the actual structure rather than using a conveyor belt, and moving from brush to touchless washes.

"In-bay automatic is almost entirely the type of systems c-stores have across the board. I would say 99%," said Ken Underhill, director of marketing for D&S Car Wash, a supplier based in High Ridge, Mo. 

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Another trend gaining traction is car wash subscription programs. H&S Energy Partners, the Orange, Calif.-based operator of 170 c-stores, and Enmarket, the Savannah, Ga.-based operator of 130 c-stores, recently announced the addition of car wash subscriptions in partnership with marketing technology company Liquid Barcodes.

"A lot of c-store operators have chosen to jump on the bandwagon of subscriptions and simply put, it's a no-brainer," said Saurabh Swarup, general manager, North America and head of global sales at Liquid Barcodes, which has an office in Fairfax, Va. "Operators are seeing 90% margins and also seeing a 90% autorenewal rate."

Equipment Trends

The days of the conveyor belt car wash are all but gone as the majority of convenience stores today are using in-bay automatic washes, which are available with brushes or touchless.

For years, brushes were the dominant model with around 80% choosing this over touchless. However, the last 18 months have seen a shift to 50-50, according to Underhill.

"I think consumers' taste and preferences might be guiding this trend," he said. "Touchless has an advanced cleaning ability. [They] are a little more expensive over the brush — maybe $5,000 to $10,000 more — and also cost more to run in terms of water, energy and chemicals. You have to use more of all three to get it clean without brushes."

At Family Express, the retailer has opted to offer its customers a choice, so at its newest car washes, there's the option of a brush or touchless wash in a single bay. The customer can decide, according to Fasel, who noted that touchless is a priority with activating the wash.

"Touchless automation has become a major focus," he said. "Giving customers the ability to activate the car wash without having to go inside the store, interact with a kiosk or roll down their car window has become increasingly popular. A significant number of cars we wash use touchless automation to activate the wash, and that number continues to grow every day."

In addition to a touchless start to the wash, which happens via a mobile app, Family Express offers kiosks. As of now, 75% of the cars washed at its locations have some interaction with the kiosk, whether purchasing washes directly through it or entering a code for washes purchased at the fuel dispenser or inside the store.

A screenshot of the Family Express car wash app
Customers can activate the car wash via the Family Express mobile app.

"Right now, a dependable kiosk is a necessary feature of a successful car wash, but as touchless automation becomes more prevalent, there will be less reliance on the kiosk," Fasel said, noting that touchless activation through a mobile app saves several steps vs. entering a code into a kiosk. "This leads to an easier and quicker process for customers, and they can also activate the wash without rolling down their window, which provides an added level of comfort — especially during colder months."

Along with the actual car wash equipment, there's been continued advancement in lighting features and sounds inside the bay. For example, the music and lighting can be customized to reflect what is going on with the wash cycle, said D&S' Underhill.

"When drying, the lights could be red for hot, for example, and we are moving to the next level of sophistication for sound, lighting and cycles," he explained, pointing to a company called Carwash FX, which is a cloud-based digital marketing attendant that can add voice sound effects, music and more to a car wash experience.

The Subscription Model

In the c-store space, subscriptions have become popular for a variety of offerings, such as coffee, fountain drinks and now car washes. Several chains offer different tiers of subscriptions, including unlimited washes — which at first might seem like a revenue loss, but actually end up the opposite.

For example, if someone normally comes once a month for a car wash, but buys the unlimited subscription and now comes three or four times a month, they often don't just get the car wash. They will end up buying gas and stopping in the store for a coffee or sandwich.

"Unlimited usually has an asterisk that states 30 washes per month, for example, and many retailers offer a variety of plans, such as a basic plan, silver, gold or platinum levels, and users can upgrade," Swarup noted. "If I have a basic plan, an app can prompt me to upgrade for an extra feature and pay an extra $2, which adds up to additional revenue as well."

Family Express works with a company called Mosaic for its digital car wash platform, and its mobile app enables customers to purchase unlimited car wash subscriptions as well as individual washes using their personal mobile device.

"They can manage purchases and payment methods through their mobile wallet, earn rewards for getting their vehicles washed, and receive targeted car wash offers using advanced geofencing capabilities," Fasel said.

Additionally, since the retailer offers both brush and touchless car washes, Family Express customers can opt for either a brush or touchless subscription plan, with the most popular being its Works Wash subscription. "It's our top-end package with a traditional brush wash, though the touchless subscription is gaining popularity," Fasel noted.

The chain combines digital advertising with discounts to drive subscription signups, along with targeted messaging through its mobile app, which he said has been "very successful."

Car wash subscriptions benefit both the retailer and the customer, as the consumer is more likely to return to the store and purchase other items — plus, the recurring revenue the subscription provides — and customers feel like they are getting a deal.

"It's really the reverse of a loyalty program," said Swarup. "We call it locked-in loyalty because they have a card on file, have already paid for the service, and now just have to go and use it. This is true loyalty and will have customers going to your location over others."

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