By: Anthony Analetto
Originally Published in AutoLaundry Magazine
Who knew car washing would ever become this exciting? A year has passed since I last wrote about the explosion of completely automated Express Exterior tunnel washes offering free vacuuming. The prospect of washing high volumes of cars with minimal labor expense has continued to attract more investors to car washing. It has spawned three separate Express Exterior franchise chains making it easier for investors to enter the market. At the same time, more manufacturers have entered or reinvested in building conveyorized equipment. The increased number of conveyorized manufacturers has increased competition and raised the bar for equipment to produce clean, dry, shiny, cars with absolutely no prepping or aftercare. It’s an exciting time for car washing as an industry with increasing opportunities available to Full Serve, Flex Serve, Express Exterior, and Self Serve operators across the country.
Express, Flex, and everything in-between:
One of the most interesting developments of the Express Exterior model is how many of its principles are being incorporated by Full Serve Operators at their existing locations. Although there are hundreds of variations, all of them are increasing profit margins and reducing the cost of labor as a percentage of gross sales. Below are brief descriptions of several major car wash types that are evolving daily.
Flex Serve:
The typical flex serve is the combination of Express Exterior and Full Service offerings on one property. The foundation of this style is an Express Exterior conveyorized tunnel with automated gated entry that requires no manual prepping and produces a clean, shiny, and completely dry car with no labor. Optional exterior services such as tire shining and bug removal are performed online via computer-controlled equipment. In Express, the customer has no interior option and exit into free vacuum bays for self-serve interior cleaning. In Flex, the customer can exit directly, normally past vended vacuums, or add quick interior and exterior services, requiring 15 minutes or less to complete. If space permits, additional detailing options can be offered that demand greater than 15 minutes. This is not the same as Full Serve where the object is to get every customer to purchase as many extra services as possible. A properly executed Flex Serve carefully manages and adjusts aftercare service pricing to maintain controlled flow through the property, putting labor where margin makes sense. There are differing opinions as to the exact mix and ratio, but a good rule of thumb to start your planning with is that you want 30% of all exterior customers to purchase aftercare services with 25% or less of gross revenue going to labor cost.
Flex Serve with Self Serve Bays
This unique variation on the classic Flex Serve described above has been highly successful for some operators. It takes the ability of a Flex Serve location to attract a wide range of customers by offering multiple specialties or services on the same property and amplifies it. When executed correctly, it can offer a diverse population of customers with different preferences, a wash where they feel in control of both the time and money they are investing to get a clean car. It also has worked well in periods of inclement weather where people continue to purchase self serve and detailing services even when they normally wouldn’t go through the car wash.
Adding Express Exterior Lanes to existing Full Serves:
Another concept gaining in popularity is adding an express only lane by converting an existing second or third vacuum lane or by adding an entrance lane to the conveyor. Full-serve operations continue during peak times with customers exiting the vehicle, paying in a lobby area, and picking up their vehicle at the conveyor exit. Express lane customers enter a clearly marked “express lane” promising a maximum wash time of 3 to 5 minutes depending on equipment performance. Express customers pay through an automated attendant, stay in the vehicle during the wash, and exit the wash directly with no attendant interaction. The minimal staffing requirements of the express lane permit it to remain open even when the full-service lanes are closed.
Market Momentum:
Another exciting phenomenon being witnessed is what appears to be a more legitimate view of car washing by both investors and bankers. Many Express Exterior locations have enjoyed tremendous volume and return on investment. Their success has built confidence in the model and facilitated traditional financing options for new operators looking to convert or open new locations.
Wash Improvements:
The pace at which advancements in equipment, automated attendants, and chemicals are delivered to market has accelerated. The elimination of labor through computer controlled equipment in Express Exterior means if the car comes out of the tunnel anything less than clean dry and shiny – there is no person to touch it up. Additionally, there is no prep attendant to find scratches and blemishes before a car enters the wash. These two facts have demanded that equipment wash better, safer, and more economically to support the low price points.
Equipment Improvements:
The low price points and promise of fast service by Express Exterior car washes fundamentally demands an equipment packages that can meet that expectation for the anticipated volume at the site. To achieve this, the most prevalent design philosophy involves a hybrid combination of both friction and high-pressure wash technologies, leveraging the advantages of each to produce cleaner cars, faster, more safely, at the lowest possible cost per vehicle. New wash materials and new high-pressure technologies deliver unprecedented car wash performance with less prepping and finishing.
Advancements in Automated Attendants:
Automated attendants are now available that are faster, can easily process credit cards in seconds, and handle multiple lanes for unlimited throughput. Newer models are available with multilingual interfaces and are easier to work with. Every day, new advancements are created that improve cross selling and merchandising opportunities.
Chemicals:
Getting a clean car at high volumes is like conducting an orchestra of how long a chemical has to dwell and act with gravity before being agitated or removed. Express Exterior has been designed in conjunction with chemical manufacturers so that you do not only have better chemicals; they are better applied and removed.
Lessons Learned:
One of the biggest lessons learned is the need to carefully plan for increased volumes. Traditionally, the rule of thumb, not considering demographic, climate, or marketing, was to design a wash that could handle 1% or your daily traffic count. With Express Exterior locations I would recommend adjusting that rule of thumb anywhere from 3-6% of daily traffic. That means you need to either build or design in the ability to increase to that amount. Sites that have not built in enough capacity, face diminishing the quality of the wash by raising conveyor speeds, diminishing competitive advantage by increasing wait times, or diminishing safety by using harsh cleaning products.
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