A car wash operation can bolster a convenience store’s bottom line, but with a variety of options, new technologies, sustainability concerns, differences among locations and a host of promotional possibilities, a strategy aimed at building that business can prove to be a complex one.
Mike Gewirtz, general manager of Lanman Oil Co. Inc., based in Mattoon, Ill., identified touch-free tunnel washes as the latest trend in c-store car washes. He explained that his company, which operates four Lambo’s convenience stores, three of which have car washes, has found a way to generate additional sales with its car wash setups.
“Install vending items for additional sales,” he recommended. “Items like air fresheners and cleaners are used every day.”
Touch-free or touchless car washes use high-pressure water and chemical solutions to clean vehicles with no physical contact — there are no moving parts that come into contact with it — thereby lessening the possibility of damage.
Touchless systems generally take less time than a commercial or do-it-yourself hand-wash. They also tend to be less expensive than other types of washes and don’t require the presence of a maintenance wash attendant to make sure the operation is functioning smoothly.
“In terms of trends, we’re still seeing rapid growth in the express exterior car wash space across the industry,” said Chris Romba, senior director of Giant Eagle’s WetGo Car Wash division. “Car washes are continuing to seek opportunities for steady and predictable revenues when it comes to tunnel car washes, which is why companies are continuing to push memberships.”
Tunnel car washes use conveyor belts to move the vehicle through a series of cleaning stations.
Giant Eagle Inc. is the parent company of GetGo Café + Market convenience stores, which operates more than 270 c-stores in five states, and WetGo car washes, which total more than 40 locations across Indiana, Ohio and Pennsylvania. Most of the chain’s washes are attached to GetGo stores, though there are three standalone WetGo locations and more scheduled in the months ahead.
Romba said he views memberships as a win-win.
“They are a great value for customers and provide a steady revenue stream,” Romba added. “With each passing year, car wash technology continues to improve. New features are rolling out that improve the customer experience, new equipment improves wash quality, and there are always new options available to improve sustainability.”
Of course, not every convenience store retailer is convinced that car washes will prove to be a profitable venture in every market.
“It’s easy to tell you about car washes,” said Sam Odeh, president of Power Energy Corp. in Elmhurst, Ill., which has 1,359 sites in nine states, 96 of which are corporately owned under the Power Mart, Power Market and Powmaro’s banners. “We have shut all 15 of them forever. There is no way we can compete with the $3 car wash and free vacuums, to say nothing of all of the various labor issues, all the high costs of utilities and all of the maintenance. We are out and done with them, and we wish other operators all good luck.”
Technology Advances
Technological advancements continue to render car washes more efficient and profitable for many retailers.
For example, Warrenton Oil Co. launched the Car and Truck Wash App in late May of this year.
Warrenton Oil Co. operates 59 FastLane convenience stores throughout Missouri, as well as 17 car wash locations and one FastLane Truck Wash location.
FastLane offers customers a subscription option for monthly car and truck washing, providing a frictionless and contactless solution. Customers can select from several car wash subscription packages.
Another convenience store chain, Valparaiso, Ind.-based Family Express, which operates 81 stores throughout northwest and north central Indiana, is introducing car wash kiosks at its locations in partnership with Innovative Control Systems. According to the company, the kiosks feature 15-inch touchscreens aimed at improving the customer experience.
The technology is also rolling out to sites without car washes. This will allow customers to buy car wash codes in-store and at the pump to use at Family Express car wash locations, so guests can purchase car washes when and where they prefer.
Family Express also announced that it is adding a new car wash mobile app platform in partnership with Mosaic, so customers can buy unlimited car wash subscriptions and individual washes via the company’s app. Customers will also be able to manage purchases and payment methods via their mobile wallet and gain rewards for washing their car or vehicle. Advanced geofencing capabilities will allow the company to send targeted car wash offers to customers as well.
Family Express plans to have car washes operating in 45% of locations and to continue adding new car wash operations.