Rinsed Releases Q1 2024 Car Wash Industry Report

January 2024 — Rinsed announced the release of its Q1 2024 Car Wash Industry Report. This report analyzes data from over 2,000 car washes, offering valuable insights to the car wash industry.

Compared to last year, the industry experienced a 6.8% increase in combined member and retail revenue. This growth was driven by an increase in membership revenue as the industry shifts towards a subscription-based model.

With membership revenue up by 15.1% this year, retail revenue decreased by 5.3%, a natural outcome as more retail customers transition to membership. 

The average conversion rate this quarter reached 8.5%, marking a 19.8% increase from the previous quarter. This highlights the industry's growing emphasis on membership as more retail customers convert to members.

Over the last several months, most members washed their cars between 2-3 times per month. Aligning with this trend, the average number of monthly washes per member was 2.3 this quarter.

The report also shares insight into member counts of car wash locations that have been in operation for at least 30 months. The 25th percentile had 1,700 members while the 75th percentile exceeded 4,000 members. Understanding industry member counts allows operators to set achievable membership targets. 

Lastly, the report featured average monthly churn. This quarter’s overall average churn rate was 7.9%, with a 3.3% credit card churn rate and a 4.6% voluntary churn rate. For the past several quarters, the churn rate has gradually increased. This is closely linked to membership revenue growth, as higher membership counts often come with increased churn risk. 

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