my guess is scale. mister car wash is publicly traded with 400+ units as the largest express operator in the nation. big operators and PE funds care about absolute dollars and a well run express can do $2-3mm revenues and $1mm cash flow with the right equipment and mgmt team so once u get a model that is low on labor, it's an easier business to scale with the right access to capital and managers without having to be at the mercy of each new market's labor situation. i'm a novice to the space but how many SS/IBAs do $1mm+ of cash flow? so with big financial and strategic buyers for express given its ability to scale, that's my best guess
Help first Car wash Purchase w/o RE
- Thread starter Brian147m
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Roz
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You are probably right. I know of a few SS/IBA that probably produce $1M, and more that probably do $500K+ but still not at the Express level. I do hear about many Express tunnels that lose money on revenue of $1M so it is not a slam dunk for sure.
yeah ss/ibas doing 500k-1mm of cash flow - that's fantastic...any express losing money on $1mm on revenue is hard to believe...full service washes in the northeast doing $1mm of revenues have payrolls of 400k and are still making money so a good express with $1mm of revenues shld have a payroll of sub $200k so losing money on $1mm is pretty bad
april 2022 presentation from mister car wash...amazing they average over 4k monthly memberships per site....
