Ryan Sommer, Key Account Manager of car wash systems and technology company WashTec, highlights feedback from both local and global fuel retailers over the past 24 months that competition has never been more intense.
“The number of operators, sites, and new developments continues to grow, with many service stations either recently built or currently in the development approval phase,” he said. “As a result, differentiation has become critical to long term success.
“Retail operators can’t rely on fuel alone to attract customers. A clear and compelling offer is essential, and this is where an integrated car wash proposition plays a significant role. In highly competitive areas, a car wash can be the deciding factor when customers are choosing between nearby sites. Beyond customer acquisition, it also creates opportunities for cross promotion and increased revenue per visit, while supporting customer retention initiatives.
“Consistently, larger organisations operating national networks report that in highly competitive regions, the car wash has become either the number one or number two profit centre on-site. In many cases, car wash profitability now outperforms fuel margins in these highly competitive areas.”
Managing Director Rory Hilton at Car Wash Sales and Advisory notes that a car wash service is a “great use of surplus land with minimal staffing obligations for favourable returns, and allows customers to stay on-site for longer, increasing chances of further sales of fuel or in the convenience store”.
If done correctly, says Australian Car Wash Association (ACWA) President Tony Young, a car wash service can transform a service station into a “one-stop shop” for fuel, convenience items, and cleaning.
“It’s about leveraging your existing customer base, as it’s always easier to sell a new service to an existing customer than sell any service to a customer,” he said.
Mr Hilton, however, believes many retailers don’t understand the opportunity.
“Independent operators don’t consider these offerings as competition when reviewing a catchment, which indicates that there’s a missed opportunity for revenue in this space by the petroleum sector,” he said.
“A lot also depends on the licensing arrangements for individual sites with the petroleum groups. We’d expect a corporate-run site to be better maintained, presented, and managed than a licensee site, typically.
The ACWA can support retailers with independent, industry[1]specific guidance at every stage of the car wash installation process, according to Business Manager Chris James.
“This includes helping operators assess site feasibility, understand equipment options – automatic versus self-serve – navigate planning and environmental requirements, and benchmark expected returns based on real industry data,” he said.
“ACWA can also connect retailers with reputable suppliers, consultants, and operators, ensuring decisions are informed by proven expertise rather than sales-driven advice.”
Beyond installation, Mr James says ACWA adds ongoing value by equipping retailers with operational best practice, staff training resources, and insights into emerging technologies such as water recycling and digital payment systems.
“Members also gain access to industry advocacy, compliance updates, and benchmarking tools that help maximise long-term profitability,” he added.
“In short, ACWA acts as both a trusted adviser and an industry connector, reducing risk and improving the likelihood of a successful, sustainable car wash investment.”
WashTec is a publicly listed German company described by Mr Sommer as the global market leader in car wash technology, operating in more than 70 countries with a workforce of more than 1800 employees worldwide.
“Every day, approximately 2.75 million vehicles are washed using WashTec equipment,” he said. “In Australia and New Zealand, we have a national offering where we have factory-trained technicians in every state and territory.”
WashTec serves a broad range of markets, including:
Carwash World partners with P&C retailers to deliver car wash solutions that are built to “perform on site, not just on paper”, according to Business Development Manager Connor Milligan.
“We’re the exclusive distributor across eastern and central Australia for PDQ’s LaserWash systems, a premium touch[1]free platform known for reliability, strong wash results, and consistent uptime in Australian conditions,” he said.
“Our focus is on the commercial outcome. It’s not just about installing a machine – it’s about how that machine performs day in, day out. We work closely with operators on layout, product selection, customer flow, and ongoing support to ensure the wash is operating at a high standard and being used as often as possible.”
Mr Hilton advises retailers to engage experts to review their portfolio and look for value-add opportunities for growth.
“This will need to be budgeted [as well], which will take some guidance and management,” he continued.
“Additionally, if it’s not a focus area, look at a sub-lease arrangement with a traditional operator who will focus on the output of the car wash area, which in turn will maximise site traffic.”
Mr Hilton points to his business and services.
“[We] are independent experts in the field, so [by] engaging with us to understand site fundamentals – from development stage through to delivery and ongoing management – we can identify growth opportunities, management efficiencies, and guidance when reviewing equipment based on its fundamentals and dynamics,” he said.
“We look at more car wash operations than any other organisation in the country, and with this comes a great deal of [intellectual property], which we’re always happy to pass on.”
Offering a supplier perspective, Mr Milligan says many sites fall short by treating the car wash as a cost decision.
“Lower upfront spend often comes at the expense of reliability and wash quality, which ultimately impacts usage, ” he said. “If the machine is down, or the result isn’t consistent, customers don’t come back – it’s as simple as that.”
The sites that perform well take a different approach, says Mr Milligan.
“They focus on uptime, a strong wash result, and a consistent customer experience. That’s what drives repeat business and long-term revenue,” he said.
“There’s also a big opportunity being missed at the point of sale. You’ve already got the customer on-site, filling up – converting that customer is where the value is.”
Mr Milligan says the better-performing sites make this easy and visible by having:
“It’s surprising how many customers drive off without purchasing, simply because it’s not obvious or convenient,” he said. “Small improvements in how the wash is presented and sold can have a significant impact on conversion.”
Mr Sommer adds that when considering the physical footprint of an automatic car wash – comprising the wash bay, plant room, and vehicle queuing area – few alternative site offerings deliver a comparable return on investment per square metre.
“While quick service restaurants can present a compelling business case, they require a significantly larger footprint,” he said.
“The relatively small space requirement of an automatic car wash means it can often be retrofitted into existing or older sites, allowing operators to unlock additional revenue as a separate business case.”