Atlantic Street Capital bolsters Zips Car Wash with $70m investment to enhance operations and customer experience
Atlantic Street Capital (ASC), a private equity firm known for its focus on lower middle market companies, has announced a significant additional investment of $70 million into Zips Car Wash. This substantial infusion is aimed at enhancing the operating strategy, member experience, leadership, and wash quality of Zips Car Wash, one of ASC’s key portfolio companies.
Strategic Expansion and Consumer Engagement
Zips Car Wash, headquartered in Plano, Texas, has experienced rapid growth over the last two decades, particularly in the last eight years through strategic acquisitions, development, and an increase in membership. Currently, Zips operates over 270 locations across more than 20 states and manages three distinct brands: Zips Car Wash, Rocket Express Car Wash, and Jet Brite Car Wash.
Andy Wilkins, Managing Partner at ASC, highlighted the strategic importance of the investment: “Express only car wash chains are a great place to invest yet face challenging consumer trends that need to be addressed by Zips and the industry at large. This capital is critical for Zips’ efforts to think beyond existing industry strategies to accelerate growth, define membership experience, and capture retail attention.”
Enhancing Operations and Customer Experience
Since its initial investment in 2020 and a subsequent increase in 2022 through the acquisition of additional equity from founding shareholders via a continuation fund, Atlantic Street Capital has been instrumental in propelling Zips’ growth. The company has notably expanded its footprint, acquired new locations, and significantly upgraded its equipment. Moreover, Zips has streamlined its monthly membership offerings and leveraged technology to improve wash quality, ensuring a superior consumer experience.
The investment is expected to further Zips’ commitment to delivering the highest quality express tunnel wash experience. By focusing on operational improvements and enhancing the overall customer journey, Zips aims to set a new standard in the car wash industry.
Future Outlook and Industry Impact
This latest investment by Atlantic Street Capital is poised to not only solidify Zips Car Wash’s market position but also to potentially redefine industry standards for customer service and operational efficiency in the express car wash sector. As the company continues to expand and refine its service offerings, the impact of this investment will likely be observed in enhanced customer satisfaction and increased market share.