Keith Lutz on Bay Format Interest & Supply Chain Updates

In this episode of Car Wash Exchange, host Rich DiPaolo talks with Keith Lutz, CEO of Kleen-Rite and an ICA Board member, about the resurgence of the self-serve car wash market. Keith explains what is driving new investment, how self-serve operators can compete with express washes, and why professionalism, reinvestment and operationalexcellence are creating new opportunities in the segment. They also discuss Kleen-Rite’s approach to supply-chain challenges, company culture and recentacquisition· The self-serve segment is benefiting from the overall growth and professionalization of the car wash industry, attracting both new and existinginvestors. · Self-serve can offer an attractive investment model because it generally requires less capital and fewer employees than an express tunnel. · Operators shouldn't fear competition from express washes. Instead, they should focus on making their own locations inviting, reliable, well-maintained and easy to use.· Reinvestment matters. Equipment, appearance, curb appeal and operational excellence can make a major difference in a location's ability to compete. ·  Membership and club programs aren't limited to express washes; self-serve and in-bay automatic operators can also use them to create value and encourage repeat customers. · The supply-chain disruptions of the past several years reinforced the importance of investing in inventory, distribution and infrastructure to maintain continuityfor customers. · Kleen-Rite is balancing its family-business legacy with growth by investing in its people, technology, distribution and professional management while staying grounded in its mission and values. · Keith sees continued opportunity across all car wash models, with the industry's growing focus on professionalism and operational excellence benefitingoperators across the board. The self-serve car wash segment is experiencing a resurgence, attracting newinvestors and renewed interest from longtime operators. In this episode of Car Wash Exchange, Rich DiPaolo sits down with Keith Lutz, CEO of Kleen-Rite and an ICA Board member, to explore what’s behind that growth and what it means for the future of the industry. Keith shares insights on competing with express washes, creating value for customers, reinvesting in existing locations andrunning a self-serve business with greater professionalism and operational excellence. He also discusses Kleen-Rite’s lessons from recent supply-chain challenges, maintaining its family-business culture and the strategy behind its recent acquisitions.(:56) Keith and Rich will talk about theresurgence of the self-serve car wash market.(1:58) Keith talks about the factorsthat are influencing the self-serve segment.(4:51) Keith talks about the types ofinvestors are coming to the self-serve market(9:33) How can a self-serve operatorremain competitive with the larger car washes?(13:57) What can a self-serve locationdo to offer the same value as a membership?(17:56) What lessons has Kleen Ritetaken from the current industry…and has the industry normalized?(21:44) How does Kleen Rite balancepreserving a legacy culture with market demands?(23:56) What gaps and capabilities isKleen Rite looking for in their recent acquisitions?(26:38) What excited Keith most aboutthe Car Wash industry?JoinICA: https://www.carwash.org/join-ica