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private equity backed vs independent success

losuvos.berto

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Curious what everyone's viewpoint is on the successfulness of a wash when it's owned by those pe shops vs staying independent. Lots were bought up in 2021-22, though seems like they're generally faring worse then independent washes. El Car Wash down in FL, Spotless, Zips, Whistle express, club car wash come to mind.
 

washnshine

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Well, I suppose like anything, it can go either way. Around me, Go has purchased or built over 20 washes over the last 3 years. 70% of the existing independent tunnel washes are that were around before Go entered the market have either closed or dried up to the point where they are just a shell of what they used to be. Before Go came to town, we had another heavy hitter in the market - Delta Sonic - very old family owned location with over 30 locations. They are still going strong, but Go probably did cut into their market share. The difference between Delta Sonic and smaller washes that dried up is that Delta could withstand the flooding of the market with a new chain entering the game. Most smaller operators could not. It also helps that Delta Sonic sells gas, oil changes, has convenience stores, interior cleaning, detailing, brick oven pizza- you get the picture. They are much more than an express exterior. I’m one of the fortunate 30% of independent tunnel operators who is still in the game and not hurting. I would not be surprised if Go contacts me about a possible acquisition sometime on the future.
 

OurTown

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How are you judging this if you can't see the numbers of the non-publicly traded ones to judge success? Some have closed a few locations so I guess there's that. Around here there are not that many EEs that are privately owned. The corporate ones are on the crack pipe with over building and the situation is still playing out around here. The next city over (43K pop, $75K HH income) had just built one EE when we bought our wash 7 years ago. They now have 4 open and 2 more to open soon. There are of course many SS, IBA, and C-store sites as well.
 
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