The car wash industry looks very different today than it did five years ago. The post-pandemic world, rising construction costs, and a dramatic shift in interest rates have reshaped how operators build, invest, and grow. At Momentum Car Wash Specialists, we've had a front-row seat to this evolution — and we think the next chapter is one of the most interesting the industry has seen.
Cost Is the New Ceiling on New Builds
Before the rate environment changed, the industry was adding over 800 new car wash locations per year. By 2024, that number had dropped to an estimated 600–700 — a meaningful pullback driven almost entirely by the cost of capital and construction (Professional Car Washing & Detailing, State of Carwashing 2024). Land prices are up. Construction costs are up. Equipment costs are up. And when borrowing money becomes expensive, the math on a $4–6M new-build gets a lot harder to justify.
What's emerged as a result is a more disciplined, creative approach to growth. Rather than breaking ground on new sites, many of the smartest operators in the space are putting capital to work inside their existing footprints — upgrading equipment, improving site flow, adding capacity, and investing in technology that drives throughput without adding headcount.
The Sites Being Built Are Smarter
When new sites are being built, they look different. They're smaller, faster, more visually striking, and require fewer employees on-site. The days of the large-footprint, full-service model requiring a team of 15+ are giving way to lean express tunnels that can process hundreds of cars per day with a fraction of the labor. Automation, better chemical systems, and high-tech pay stations are doing the work that used to require people.
This is good news for operators navigating a challenging labor market, and it's what customers increasingly expect: fast, consistent, high-quality results with minimal friction.
Membership Is Where the Value Lives
The single biggest shift in the car wash business over the last five years isn't operational — it's the membership model. Unlimited wash memberships have fundamentally changed how this business works, and the numbers tell the story: as of mid-2024, membership revenue in the industry was growing at 16.6% year-over-year while traditional retail (pay-per-wash) revenue was declining (ICA CAR WASH Pulse™).
That's not a coincidence. Memberships create predictable, recurring revenue. They anchor demand. They reduce sensitivity to weather. And they build a base of loyal customers who visit more frequently and spend more over time. According to ICA's Q4 2025 outlook, memberships remain the industry's "primary stabilizer" heading into 2026 — even as broader revenue growth moderates.
At Momentum, we have introduced HATCH - a 3 prong approach to membership growth that offers something unique from what the rest of the industry is selling. We have a traffic system, a monitored, hands on employment systems with guarentees and a CRM system that connects all 3. We are seeing some huge potential with HATCH.
Where We See the Biggest Opportunities
At Momentum, we believe the biggest opportunities right now are for operators who treat their existing sites as assets to be optimized, not just locations to operate. That means:
- Investing in equipment upgrades that increase throughput and reduce downtime - CapEx programs by Momentum.
Once you have upgraded, now you need to get the customers into the site :
- Building and refining a membership program with clear tier structure and pricing - HATCH by Momentum.
Then you can streamline the locations:
- Reducing labor dependency through smart automation - AI to build predictive models for staffing and business optimizations.
Then you can reinvest into even better experiances for your customers.
- Improving the customer experience with better lighting, landscaping, and speed.
Back to Capex.
Build the loop - because the key word is returns. Returning customers, returns on investments and you keep the loop, looping.
The bar has been raised. Customers are more sophisticated, competition is more intense, and the margin for operational sloppiness is thinner than it used to be. But for operators willing to invest in their sites and commit to the membership model, the returns are real — and the opportunity is pretty amazing!
By Chris Hovinga | Momentum Car Wash
Sources: https://www.momentumcarwash.com/hatch ICA CAR WASH Pulse™ Q4 2025 | Professional Car Washing & Detailing – State of Carwashing 2024 | Auto Laundry News – Ongoing Growth
