Why Are There So Many Car Washes In Tampa Bay?
There’s no shortage of car washes in the Tampa Bay area. Chances are, if you need one, you can find multiple within a 5-minute drive. But, why are dozens of new car washes popping up all across the state? We’ll share a few reasons why you might be seeing more car washes in Tampa Bay.
The days of old-school full-service car washes may be coming to an end. New chains are on the rise and opening dozens of state-of-the-art automated car washes across the Tampa Bay area. The choice between a self-service wash bay or a full-service washing is gone and residents are left to make a new choice between Woodie’s Wash Shack, Big Dan’s, Bubble Down, and more.
Why are the chain car washes taking over?
One reason these chains are taking over is their offer. People are steering towards convenience more than anything in 2024. For example, let’s take a look at Woodie’s Wash Shack. Washes start at $14 for the lowest tier and go up to $30 for the top-tier wash package. Subscriptions are the real kicker and offer customers the most bang for the buck with $24.99 unlimited for the lowest option and $49.99 for the top tier unlimited package.
These new facilities operate with a lower labor cost because of the automated systems and allow for a higher profit. Even if people aren’t using their monthly subscriptions, the company is still making money off of them.
What is Landbanking and How Does it Apply?
Convenience isn’t the only reason car wash chains are taking over Tampa Bay. Yes, having dozens of car washes along a mile strip is convenient for residents, but that’s not the only reason they’re around.
Land Banking is, “the practice of acquiring parcels of land for future sale or development.” Developers have used this strategy for decades to hold onto land in an area where high population growth is projected. They wait and then sell to other developers for housing, shopping, and more, years down the road.
Tampa Bay has seen an insane amount of growth since 2020 with no slowing down in sight. The developers that buy up these plots of land want to put down a low-maintenance, low-cost business to help increase profit while holding the land. These car wash chains rely heavily on automation so costs are generally low and these car washes turn into passive income for land that is already increasing in value in the area, just like the storage facility boom back in the 2010s.
What do storage facilities have to do with car washes? Well like a car wash, the storage facilities are easy to build and offer a low-cost, high-profit business. They have space and you need it. It is as simple as that. Once the facility is no longer needed, they can sell the land to the highest bidder for a new development.
Watching local businesses and restaurants being torn down for more carwashes isn’t ideal, but that’s what happens in a booming city. Let us know your thoughts. Do you like the ease and convenience of the new car wash chains?