CStore Decisions October 2021

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Operations | Car Wash

GetGo’s WetGo Pro car washes offer free air, free-to-use microfiber towels and vacuums. Mach1 convenience stores in Illinois saw a 6% drop in wash counts when the pandemic arrived, but revenue held flat because the customers using the car washes were purchasing higher-priced washes. It also didn’t allow a pandemic to slow its expansion plans, opening two travel centers in 2020, both of which included car washes. The chain’s monthly memberships stayed consistent as well, providing a predictable revenue source, noted Michael Meyer, facility operations officer for Meyer Oil Co., which owns and operates 23 Mach1 convenience stores in Illinois, 19 of which offer in-bay car washes. “Six of the sites have two in-bay washes — both a soft touch and touch-free option. And finally, at three of the sites, we offer manual wash bays,” he said. Having all in-bay units helps keep labor costs manageable and allows the chain to keep the washes open 24 hours, Meyer added. Now, car wash demand appears to be on the rise. “Summer of 2021 is looking very optimistic compared to the same timeframe as last year,” Meyer said. “Wash counts are up around 6% and revenue is up around 10%.” GROWTH AHEAD

The U.S. car wash service market size is predicted to climb to $20.74 billion by 2028 and is expected to expand at a compound annual growth rate (CARG) of 4.8% from 2021 to 2028, according to “U.S. Car Wash Service Market Size, Share & Trends Analysis Report by Type (Tunnels, Roll-over/In-bay, Self-service), and Segment Forecasts, 2021 – 2028.” According to the report, roll-over/in-bay car washes dominated in 2020 at 41.8% share of the market as 130

CSTORE DECISIONS •

October 2021

their low operating costs, small footprint and low water consumption make them attractive to operators. This trend is also being driven by auto dealerships entering the car wash market and selecting in-bay units. In-bay washes are expected to expand at a faster CARG than other car wash types during the forecast period, the report noted. Self-service-type washes are also growing in popularity as more customers prefer to wash their vehicles themselves. This segment is predicted to grow at a CARG of 4.9% from 2021 to 2028, per the report. WETGO PRO

When the pandemic first hit last spring, the industry saw a slowdown in car washes, noted Sean McBride, vice president of carwash at GetGo Café + Market, which operates 266 c-stores in Pennsylvania, Ohio, West Virginia, Maryland and Indiana, as well as 41 car washes — 29 conveyor car washes and 12 touch-free washes. “We rolled our sleeves up. Where a lot of (car washes) decided just to shut down and/or hunker down, GetGo and Giant Eagle as a whole decided they wanted to try and serve the neighbors as best as they could (including with car washes),” McBride said. “We pushed forward as best as we could with new protocols. Sometimes they were coming over by the day.” The work paid off. Despite industry trends, GetGo car wash volumes have stayed consistent during the pandemic. “We had a growth year last year,” he said. McBride attributed that growth to the chain’s car wash subscriptions, and the mid-pandemic launch of its new WetGo Pro car wash, which rolled out to the Pittsburgh market in fall of 2020.

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