Refresh, Renew, and ROI
When the Bhathal family investment group completed the purchase of its first car wash on April 30, the “bones” of the 18-year-old facility in southwest Fort Worth were sound, but the business was underperforming and needed new equipment and some TLC to improve the site’s curb appeal.
After taking over on May 1 under the new Detail Busterz brand, the group, including Jas Bhathal, his father and brother-in-law, shut down the tunnel for 11 days in early June and poured roughly $650,000 into renovations, reopening in time to draw a “decent” crowd over the long Juneteenth holiday weekend.
Two months in, the new owners were already seeing promising signs that the improvements were paying off with gains of 10% and 15% in retail drive-ups and total car count, respectively, and a 17% gain in membership revenue as hundreds of customers snapped up Detail Busterz subscriptions.
“I think we’re starting to see that the return on investment is showing up, for sure,” Bhathal said in early August, noting that the wash has even been able to make a price increase instituted by the previous owner stick — even as two competitors that were the first to raise prices have rolled theirs back.
"We're starting to see that the return on investment is showing up." -JAS BHATHAL
The private equity-fueled tunnel boom that brought thousands of new washes online earlier this decade has slowed. However, new competition continues to pop up at the rate of about 500 new builds annually, according to industry insiders, leaving owners of aging sites wondering how to compete against the new, or at least newer, bright, shiny object down the street in an increasingly challenging environment.
While many of them seem more inclined to cash out than undertake needed improvements, established operators and newcomers like the Bhathals are showing that a strategic approach to updating your wash can deliver healthy returns while staving off the 20-30% revenue hit that, according to accepted industry wisdom, existing washes can expect when a new tunnel opens less than a mile away.
Even in the absence of new competition, given the typical 15- to 20-year life expectancy of tunnel equipment, more owners than not are likely reaching the point where they should be considering some kind of meaningful facility upgrades. These upgrades can advance several key business objectives, including:
- Grow topline revenue: Successful refreshes can translate into higher car counts, increased spending per customer, membership growth, reduced downtime and support for higher prices.
- Slash operating costs: Updating your wash from backroom to tunnel can improve margins by reducing the cost per car for chemicals, electricity and water as well as ongoing maintenance costs.
- Meet evolving needs: Customers today want more options than ever before, and if you can’t give them what they want, they’ll go down the street. Touchless, anyone?
- Bolster your brand: Many operators underperform because they lack a strong brand and skimp on marketing. An effective refresh can help your wash stand out amid the competition.
- Protect your asset: Failure to reinvest in wash upgrades ultimately diminishes the value of your prized asset and lowers the price you’ll be able to command when you do decide to exit.
Low cost, high impact
Facility improvements can range from basic to deluxe, including budget-friendly upgrades to enhance a site’s curb appeal, a substantial mid-tier investment that might also include new systems and equipment, or a full-scale “refresh and renew” project entailing every aspect of the wash, including wholesale replacement of tunnel or bay equipment.
“A budget refresh is going to be something that is visible to your customers,” says Chance Merritt, equipment sales manager for National Carwash Solutions (NCS). “That could be lights, arches, new cloth or foam, adding towel bins or free air and some all-purpose bottle cleaners at your vacuum stations. The more you can put in your customers’ hands to touch, the more likely they’re going to come back to your wash.”
At Detail Busterz, a full-serve wash that also offers express exterior options, about a quarter of the total spend, approximately $150,000, went into what Bhathal broadly defines as “curb appeal” — physical site enhancements, of course, but also upgrades like adding higher-quality, absorbent towels in the bins.
The site makeover, which was expected to be completed in the fall, includes stripping and repainting the tunnel arches and canopies in Detail Busterz’s green-and-gold brand palette, converting foam brushes to match the signature green, adding new illuminated signage with an eye-catching mustache logo (the Bhathal men all sport mustaches) and installing LED lighting to help the site stand out to passing motorists even at night when it’s closed. One “super-simple upgrade” — restriping the parking lot — “changed the look of the wash overnight,” Bhathal adds.
One of the lowest-cost upgrades an operator can make: a simple building rewash. And don’t underestimate the impact low-cost refreshes, such as painting, rebranding and new signage, can make, according to David Head, managing partner of Willow Oak Partners, which operates 26 self-serve washes and two tunnels under the Royal Rinse brand in the Carolinas and Virginia.
“Think of the tactile experience of the customer,” Head says. “We often take over successful washes that have years of neglect. I think everybody’s experienced a self-serve bay that’s busy and consequentially ‘yellowed’ from its prior clean, white appearance. That’s understandable, but as you’re going to a car wash to wash your car, the place should be clean. Modest investment to uplift the site can be quite beneficial.”
Spend more, get more
Just like the wash packages listed on the pay station menu, more comprehensive refreshes typically include lower-cost upgrades along with pricier options. Detail Busterz exemplifies an ambitious mid-tier refresh involving a significant investment but not at the level of a full-scale refresh and renew project.
Bhathal’s initial wish list included a full brand conversion across the site and “basically a full tunnel repack — gut the tunnel and change it,” but an evaluation of the wash concluded more limited upgrades could pay off.
"Modest investment to uplift the site can be quite beneficial." -DAVID HEAD
In addition to the “curb appeal” improvements, the family invested nearly $500,000 in systems and equipment upgrades they felt would move the needle on the wash’s revenue- and profit-generating potential, including:
- New dryers, resulting in drier cars exiting the tunnel and reducing the time Detail Busterz’s hand-drying team spends per car. New power locks on the blowers reduce the wash’s peak power usage, resulting in lower electricity consumption per car, and also make for a quieter tunnel.
- New chemical board and chemical line, replacing powdered chemicals and aging chemical dispensers, resulting in reduced chemical waste and chemical cost per car as well as a higher-quality wash for customers.
- Revamping the vacuum system for exterior-only customers, who previously complained about poor suction but now compliment the owners on vacs that “literally suck the mat right out of the car,” Bhathal says.
- New wiring in the tunnel to facilitate future equipment or lighting additions and changing out “everything that touches the car,” from the foam brushes to applicator tips and rain bars to nozzle tips. A bug prep station was also added at the tunnel entrance.
- New tunnel “jackpots” that display the customer’s selected wash package and new tunnel lighting for entertainment value. A projector to beam Detail Busterz’s logo onto cars as soap is applied was also on order.
The June refresh also included adding two digital screens at the pay station that continuously scroll through available wash options and also include marketing messages to promote memberships and other deals. All in all, the roughly $650,000 investment in the wash appears to be paying dividends.
“When we looked at this wash, we looked at where can we spend money, where can we take money that’s being overspent here and move it to somewhere else, and apply it across the board and nowhere at any point do we want to cut corners,” Bhathal asserts. “We said we’ll put money in to make more money, but we’ve got to see a return on investment on it also.”
Pull out all the stops
Established operators know when more than half-measures are needed to turn around an aging site. That’s when a full-scale “refresh and renew” project, like the one Autobell completed in 2025 at its Monroe, North Carolina, wash, becomes the answer to sagging performance.
When Autobell acquired “No. 8” 45 years ago — the eighth in Autobell’s fleet of flex-serves — the wash was already several years old, and Monroe was a sleepy rural community near Charlotte. But growth since then has brought new competitors whose impact on business factored into the decision to do a full-scale renovation, according to Carl Howard, Autobell’s president and COO.
With 91 locations and roots dating to 1969, Autobell performs a regular review to identify candidates for major overhauls, and No. 8 was an obvious choice.
“We knew we had to replace the roof, there was some extensive work involved with that, and so we thought while we’re doing that, we might as well go ahead and refresh the whole building,” Howard adds. “It’s really a new car wash at this point.”
The $1 million makeover included installing a new tunnel equipment package, refurbishing the exterior and replacing the roof, adding free vacuums for exterior-only customers, pouring new concrete, resurfacing the asphalt parking lot and adding new signage.
The refresh boosted volume and revenue 20% within the first year, and the company expects long-term gains of 30-40% due to the fresh new look and enhanced customer experience.
“We’re clearly taking back market share from our competitors,” notes Howard.
Howard estimates the Monroe investment will pay for itself in about three years, a bargain compared to the $4 million price tag for a typical greenfield project.
Autobell, which averages two to three large refreshes annually, completed a $560,000 refresh and renew of its Waynesville, North Carolina, wash in August. Between projects, the company reduces downtime and extends the life of equipment by committing 4-5% of revenue a year to its repair and maintenance budget.
Surge in refresh?
Some industry insiders say the high construction costs and lack of prime locations for new builds are spurring established operators to look at refresh options — good, better and best — in a bid to squeeze more revenue from their existing sites.
At Modernwash, founder and CEO Tim Hogue says his company’s business of designing car washes has evolved in the past few years. Today, remodels of existing sites, including facelifts involving an investment as low as $150,000-$200,000 to update tired-looking washes, now account for 20% of the company’s work.
“I’m getting a lot more of those phone calls than we ever did before,” Hogue explains. “I think we’re going to see that remodeling or refurbishing aspect of the business continue to grow, but right now it’s about double from what it used to be just a few years ago.”
"You're seeing operators do it but just not enough." -NICK SPALLONE
Merritt from NCS, which worked with the Bhathal family on its refresh, agrees.
“I’ve done quite a few refreshes recently, and I’ve really started to focus on and learn that side of the business (as opposed to equipping newly built washes),” Merritt says. “That’s where the industry’s going in my opinion.”
Royal Rinse’s Head is also seeing more refreshes at both self-serves and tunnel washes during his travels to oversee the business, but many are what he terms “forced refreshes” as new investors take over washes that have been neglected, or, in the extreme, handed back to lenders. That’s the case with a combination express tunnel and six-bay self-serve location in Charleston, South Carolina, that Head’s investment group bought at auction in June with $500,000-$550,000 budgeted for a full refresh and renew before reopening as Royal Rinse in September.
Nick Spallone, CEO of Car Wash Pro Designers, has seen a handful of operators that “don’t have the money to pump into a whole refresh and renew” express interest in modifying their tunnels — for under $100,000 — to accommodate a hybrid friction/touchless system and tap a growing customer segment.
But existing operators that actually have an appetite for reinvesting in their washes currently account for about 1-2% of the company’s business, leaving Spallone skeptical that a refresh surge is afoot. Most wait too long, until business has declined and selling out to the newcomer becomes the best option.
“You’re seeing operators do it but just not enough,” Spallone concludes. “It’s a small group of people right now. There are a lot of people that need it, but a small amount are actually pulling the trigger.”
