Holy shit. That's crazy. RIP.
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I'm going to have to give that carwash a try. i didn't know there was one in cedarbrae
"10 bays, $1/min... busy 8/24hrs 365 days a yr....
Average of 12% on borrowed funds, about $500k interest payments annually... leaving you about $1.2m in revenue... even a couple min wage staff on site and you’re returning 80-90% on your capital, plus own appreciating land"
Chemical + equipment maintenance + utilities + insurance + dirt cleanup fee/disposal + property tax and list goes on
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I have friends that own each of those business'. The car wash and convenience store seem to make big bank. Liquor store seems like small potatoes. It's pretty hard to paint everything with a broad brush in these niches, as the revenue from each of these will vary wildly based on location and other competing business' in the area.
I think for liquor stores it really only works if you have a few and are large enough to distribute to other business. (Restaurants, other stores etc)
I'll dig for more info on the carwash costs...
There's probably a Car Wash REIT out there for you to buy.
National Retail Properties NNN
"Its top five tenants are Susser Holdings (owner of Stripe's convenience stores; 5% of annualized base rate), Mister Car Wash (4.9%), Pantry (Kangaroo Express convenience stores; 4.4%), 7-Eleven (4.2%) and L.A. Fitness (4.2%)."
OK, so here we go with some numbers: (Keep in mind, these are rough ballpark numbers)
-Land in Calgary (approx, will change per location) $750k-$1.25M per acre
-General building Cost $225 per square foot
-Self wash wand bays cost ~$30k per bay for the equipment
Top Gear wash was around $7.5M for everything, Wash King was around $11M!
One large car wash in AB (Wont location or name given for Obv. reasons) averages 240,000 washes a year at an average of $12 per wash. Cost on consumables is $2 per wash. Also to keep in mind, all new washes are credit card based, so that cash incentive doesnt happen as much!
was just crunching numbers for curiosity
240,000 washes a year for a 12 bay location is about 385 car washes/bay/week
55 car washes/bay/day
assuming 12 hour a day operation this is 4.6 car washes per hour/bay.
those seem like very high numbers, essentially this car wash is running flat out year round. Maybe my marth is way off, but was surprised.
I am not aware what setup this wash had, but I am assuming its on of the large types (similar to Top Gear/Wash King) For obvious reasons they werent able to hand out more information. For comparison sake, they also said a typical single bay automatic gas station car wash gets around 60,000 washes per year.