Rinsed released its latest quarterly car wash industry report, compiling data from the last five quarters to help operators compare their car wash’s performance to broader industry trends.

This quarter, the industry observed an impressive 10.5% year-over-year growth in combined member and retail revenue. This metric analyzes the same locations each quarter to show how revenue has grown on a location-to-location basis. The accelerated growth this quarter was driven by the continued strength of membership and a recovery of retail revenue.

Member revenue increased 14.4% year-over-year and retail revenue increased 2.3% year-over-year. This was the first time retail revenue grew positively since 2022. The growth was driven by dry weather conditions and increased holiday marketing activity.

There was a positive correlation between the average lifetime of a member and the total number of active members at a car wash. Car washes with fewer than 1,000 active members had an average member lifetime of 13 months, while those with over 5,000 active members had an average member lifetime of 18 months. The industry median was 14.5 months.

Car washes with more than 5,000 members demonstrated stronger retention capabilities than car washes with fewer members. These retention capabilities likely contributed to their ability to maintain a larger membership size.

The industry generally experienced a slowdown in wash volume during the holiday season and early New Year, then an increase in the spring, summer, and fall. However, there were regional variations in these trends.

For instance, the West saw lower wash volume during the holiday season, an increase in the summer, and a decline in the fall and winter, while the Southeast experienced higher volume in the spring, a dip in the summer, another peak in the fall, and another decline during the holiday season.

In looking at average revenue from members in their first 12 months of membership, satisfied members generated more average revenue than unsatisfied members, highlighting the importance of providing a positive experience at the car wash.

The overall average monthly churn was 7.2%, a 7.5% increase year-over-year. While credit card churn remained stable this quarter, voluntary churn increased 12.8% year-over-year.  

To view the full report and learn more about the latest trends in the car wash industry, subscribe to Rinsed at rinsed.com/subscribe.