Please explain how this makes any sense

[liftheavy]

imagine spending 7-9 mil to build a tommy's car wash so you can sell it for 1/3 the price

 

[washnshine]

Ouch

 

[eckert16]

OPM...other people's money

 

[Car_Wash_Guy]

imagine spending 7-9 mil to build a tommy's car wash so you can sell it for 1/3 the price
View attachment 15284

With bonus depreciation they already wiped out a few million dollars in profit on other properties and are still ahead of the game.

 

[washnshine]

Investing to be ahead of the game and investing to maximize profits are two different approaches. Everyone has their own threshold and expectations, but I think most of us on this forum are here to make decisions that allow us to get the most out of our investments. If I lost six million somewhere and made eight somewhere else, I would not be a happy camper.

 

[Keno]

And this is what happens when we build right on top of the busies car wash in town that can't support 2 washes. Both are for sale at a deep discount. This Tommy wash was for sale a few years ago for the $6-7 Mil range and didn't trade

 

[Islandwash]

Car washing is not Fast Food, everyone not in our business fails to understand. You do not have to have a clean car, but you need to eat. Yes, car dealerships together, yes fast food together, not carwashes. The other unspoken carwash problem is rain, yes clubs have helped on this. Regardless we are selling a highly perishable commodity, time. If it rains, we never make up for that rain day. Private Equity has taken over the conveyor market and it's difficult to match their investment capability.

 

[Roz]

Maybe the owner of the Whistle Express franchise is crushing the numbers and wanted to open a second tunnel close enough so he can walk between locations....We have a few carwashes in MD that have side by side tunnels (same brand & owner & building). You need to wash a lot of cars to make it worthwhile....

 

[soonermajic]

imagine spending 7-9 mil to build a tommy's car wash so you can sell it for 1/3 the price
View attachment 15284

And it will STiLL be difficult to make a profit, @ $3.4.

 

[Earl Weiss]

Car washing is not Fast Food, everyone not in our business fails to understand. You do not have to have a clean car, but you need to eat.

You don't need to eat at fast food location just like you don't need to wash at a car wash. Different?

The market can still only support so many. Like all the chain appliance stores relegated to history.

 

[Cwajciec]

To add to the fast food track, I ate at a Chik Fil a yesterday and it was packed. Line around the building at the drive-thru. Literally next door was a Popeyes and 2 doors down a Laynes..... across the street was a recently closed KFC..... all chicken places. Both the Laynes and Popeyes are less than 2 years old, and almost no customers at the time I went (lunchtime). Those stores will close due to lack of customers; for sure.

So, someone sold them on the idea they could either take market share or increase demand for chicken in that area. In both instances they were wrong; but I bet they don't care since they cashed their check when the new store was built. The venture capital guys sell the research, demographics, traffic counts, etc and stick someone else with the bill. Must have been the same VC that sold the Tommy's next to the Whistle Express.

 

[edredtop]

To add to the fast food track, I ate at a Chik Fil a yesterday and it was packed. Line around the building at the drive-thru. Literally next door was a Popeyes and 2 doors down a Laynes..... across the street was a recently closed KFC..... all chicken places. Both the Laynes and Popeyes are less than 2 years old, and almost no customers at the time I went (lunchtime). Those stores will close due to lack of customers; for sure.

So, someone sold them on the idea they could either take market share or increase demand for chicken in that area. In both instances they were wrong; but I bet they don't care since they cashed their check when the new store was built. The venture capital guys sell the research, demographics, traffic counts, etc and stick someone else with the bill. Must have been the same VC that sold the Tommy's next to the Whistle Express.

That's a great observation.
I would argue they won't be closing due to a lack of customers (you said Chick-fil-A had a line around the building as they usually do) but because they have a product, a look, and a culture that is subpar compared to Chick-fil-A. The one (and only) time I went through a Popeye's, the employees couldn't be troubled to provide a greeting, give eye contact, or thank me for my patronage. I don't live anywhere near you, but I'm confident in saying that Chick-fil-A greeted you, looked professional (personnel, building, product presentation) and demonstrated a level of courtesy that was above and beyond their competition. When you say "thank you" a Chick-fil-A employee replies "My pleasure," the others grunt if anything at all.
In-N-Out Burger produces similar results here in So. Cal.
Several choices for a meal in a particular location, yet certain ones excel.
Your observations demonstrate that with high standards, a business can differentiate itself from the competition with no fear of who's around them.
I'd be willing to bet the operator of the new car wash construction project is betting they can do the same.
Either that, or as others have observed they may just be suckers.
Time will tell.

 

[water guy]

Absolutely Love it

 

[Waxman]

yeah, I find myself getting pretty tired of the lack of a greeting, eye contact, saying thank you, etc. at c-stores and drive thru restaurants. I thought it was just a sign that I was getting old.