Kicking the Tires on a Tunnel

[washregal]

Just doing some general numbers and think through in terms of Tunnel investment - existing established business. In general is it fair to say 50% of Gross Revenue in the Tunnel business goes to Overhead? Keeping debt service separate from this number.

 

[washnshine]

Just doing some general numbers and think through in terms of Tunnel investment - existing established business. In general is it fair to say 50% of Gross Revenue in the Tunnel business goes to Overhead? Keeping debt service separate from this number.

That sounds high to me. Of course, maybe it’s different for locations with monthly memberships that have customers paying $25/month for 15-20 washes.

 

[MC3033]

Depends on your approach and the type of tunnel site. For most modern expresses 50% is a good rate of EBITDA. The best sites are doing around 60% ebitda.