Wash Talk: The Carwash Podcast

Host Rich DiPaolo sits down with Alexandra Feldman, vice president, and Kenny Kraft, managing director, at Houlihan Lokey. In this episode, we delve into the U.S. carwash industry's latest trends, challenges and opportunities. Our conversation begins by exploring the remarkable resilience of the carwash industry. Feldman and Kraft provide insight into the key factors that have enabled this sector to weather economic fluctuations and external pressures, demonstrating its staying power. We then shift to the consolidation trends sweeping the industry over the past seven years. Feldman and Kraft discuss the driving forces behind recent M&A activity and share their projections for how these trends will evolve, touching on the strategic interests behind many acquisitions. As regulatory pressures mount, carwash operators are navigating new compliance challenges but are there opportunities for operators when it comes to regulations? Our guests outline the regulatory landscape, explaining how specific policies may shape operational practices in the years to come. Addressing the headwinds that could impact growth, Feldman and Kraft highlight the risks and challenges facing the industry over the next decade, from economic uncertainties to market shifts. The conversation wraps up with a look at the investment and financing landscape, where Feldman and Kraft shed light on why this resilient sector continues to attract investors and how operators might secure opportunities in this climate. Our guests also share invaluable advice for carwash operators considering scaling or exiting their businesses in light of current market dynamics. To read Houlihan Lokey's U.S. Convenience Store and Car Wash Industry Update, please visit https://hl.com/insights/us-convenience-store-and-car-wash-industry-update.

In the latest episode of Wash Talk: The Carwash Podcast, host Rich DiPaolo welcomes Kurt Chambliss, executive vice president of business development for TMC Financing, to discuss the SBA 504 Commercial Real Estate Loan Program. This financing option is increasingly popular among carwash operators looking to expand or upgrade their facilities. Chambliss provides an in-depth explanation of the SBA 504 Loan Program, detailing how it helps businesses finance real estate, equipment, construction, improvements and renovations. He also discusses the potential for operators to take out multiple loans and how these can be structured to maximize financial benefits. The episode also delves into the SBA 504 Green Loan Program, a valuable opportunity for carwash businesses aiming to incorporate energy-efficient upgrades. Chambliss shares examples of qualifying projects and how they can lead to cost savings. Additionally, he covers the pros and cons of refinancing to improve cash flow, offering insights into situations where refinancing has been particularly advantageous. See how partnering with the right certified development company (CDC) to secure financing can make a huge difference. Chambliss shares tips on what carwash owners should look for in a CDC to ensure a successful financing experience. He concludes the episode with practical advice for operators on navigating the financing landscape to achieve their growth and improvement goals. For more information and to find a reputable CDC in your area, please visit SBA.GOV.

Host Rich DiPaolo sits down with Danielle Petersen, chief marketing officer at Whistle Express Car Wash, to discuss the brand’s unique focus on being a "local neighborhood carwash." Petersen shares insights into how Whistle Express sets itself apart through its hyperlocal approach and meaningful community engagement. The conversation begins with why it's essential for Whistle Express to position itself as a neighborhood carwash, and how this differentiates the brand from competitors. Petersen also highlights some of the company's successful efforts to connect with local communities, including charitable on-site events and strategic partnerships that are core to Whistle’s mission. She explains how Whistle chooses causes to support and the impact these initiatives have had on the communities the company serves. With operations spanning 10 states, Petersen shares whether the company takes a different approach to customer connections in each region or follows universal strategies that resonate across the board. Finally, the episode wraps up with a look into the future, as Petersen discusses Whistle Express’ plans for growth and how the brand intends to scale its hyperlocal focus as it expands. Tune in to learn more about how Whistle Express continues to foster strong community ties while growing its presence across the U.S.

Host Rich DiPaolo is joined by Sud Bhatija, co-founder and COO of Spot AI. In the interview, Bhatija discusses how his company’s cutting-edge AI camera solutions are transforming the way operators do business in the carwash industry. Bhatija shares insights into what inspired Spot AI to focus on the carwashing and detailing industries and highlights the key features the company is offering to help alleviate such operating pain points as damage claims and bottlenecks. We also explore how Spot AI's partnership with NCS helps operators increase revenue and customer loyalty as well as the actionable insights provided through tools like unattended pay station alerts and activity maps. Tune in to learn about the costs, installation and training required for Spot AI’s systems, and hear what Bhatija envisions as the future of AI camera technology in the carwash space.

Host Rich DiPaolo welcomes Trey Merchant, CEO of Champion Xpress Carwash, to talk about Champion Xpress Carwash’s impressive achievement of reaching 50 locations, with its latest opening in Des Moines, Iowa. Merchant shares the journey behind this milestone, the strategic advantages of expanding in the Midwest and the company’s plans for continued growth. We also dive into what makes Champion Xpress stand out in a competitive carwash industry and the role of 7B Building and Development in supporting Champion's rapid expansion, as well as other operators. Tune in to hear Merchant's insights on the current state of building in the carwash industry and the exciting plans ahead for the growing chain.

Host Rich DiPaolo discusses succession planning with Dave Haupt from Red Rock Tax and Consulting Group. In this episode, we begin by discussing the essential elements of a strong succession plan and how owners can prepare for a smooth transition. Haupt shares insights into the different types of trusts, such as dynasty trusts, charitable remainder trusts, and grantor retained annuity trusts (GRATs), and how they can help in passing down a business to future generations. We also explore key business exit strategies, including the 1031 exchange and Employee Stock Ownership Plans (ESOPs), highlighting the long-term tax benefits of each. Haupt offers practical advice on how owners can enhance their business’ value to attract buyers or heirs before selling or passing it on. The episode also delves into provisions like the step-up in basis upon death and the annual gift exclusion, helping owners minimize tax impacts on heirs. Finally, Haupt discusses common mistakes business owners should avoid when handing down their businesses. Tune in for expert guidance on planning for the future and ensuring a successful business transition. For 1031 exchange help, please visit www.1031exchangesite.com.

In this episode of Unscripted, Doug Rieck, the NRCC 2024 chairman, discusses the latest plans and updates for the upcoming Northeast Regional Carwash Convention (NRCC), which will take place in Atlantic City, New Jersey, from October 7-9. Rieck provides insights into registration, exhibitor booths and what attendees can expect at the show. He highlights the educational sessions and networking events he's most excited about and highlights this year’s keynote speaker, explaining how the speaker’s message will benefit carwash professionals. Rieck also reflects on how the NRCC has evolved over the years, the challenges currently facing the carwash industry in the Northeast, and how attending the NRCC can help operators overcome these issues. He concludes by sharing where people can find more information and how to have a fun and productive experience while at the event.

Host Rich DiPaolo sits down with Ben Branam from AutoBrite Company to delve into the evolving landscape of carwash staffing. Branam provides insights into the various carwash formats available to new investors, detailing the labor requirements for each type, and the impact of increasing automation and technology in the industry.
The conversation explores the extent to which automation is affecting labor needs in carwashes, and Branam identifies key positions that remain resistant to replacement. They also discuss strategies for maintaining high customer service standards with fewer employees, emphasizing the importance of effective training and hiring practices. Branam highlights the risks of understaffing or offering inadequate wages, pointing out signs that may indicate the need for staffing adjustments.
This episode offers valuable guidance for carwash operators aiming to balance efficiency and workforce management in a rapidly changing market.
For more information about AutoBrite Company, please visit www.autobriteco.com.

Host Rich DiPaolo welcomes Brian Epstein, a regular contributor to PC&D, current carwash consultant and former operator based in Phoenix, Arizona. In this episode, we’re discussing new pricing trends that we’ve been noticing in the carwash industry. We start by delving into Epstein's background and how he got started in carwashing. We then explore some of the traditional pricing strategies that have proven most effective over the decades, as well as the worst mistakes operators make when it comes to menu pricing. Epstein shares insights on how memberships have influenced market prices. We also discuss when operators should absorb price increases versus passing them onto customers, the best way to introduce new prices to customers, and how operators can make retail customers feel welcomed and valued amidst the growing emphasis on membership programs.

Justin Pope from Allied Molded Products joins host Brian Ankney for a new episode of Wash Talk: The Carwash Podcast. Pope discusses the importance of enclosures in the carwash industry and the factors to consider when choosing the right material for an enclosure. He emphasizes the benefits of non-metallic enclosures, such as their resistance to rust and their lightweight and easy-to-modify nature. Pope also talks about the durability and lifespan of enclosures, highlighting the importance of selecting enclosures that can withstand water, cleaning agents and other corrosive chemicals. He mentions the impact resistance of enclosures and the need for them to be rigid and wobble-free. Pope also discusses the importance of UL listing, which ensures that enclosures meet certain standards of quality and construction. He concludes by mentioning the advancements in technology and product development in the enclosure industry, including the release of a new square-sized enclosure in their Ultra Line series.