The rise of car washing in Canada

While the number of fuel stations in Canada has decreased slightly, car washes are increasingly becoming a standard feature, helping stations attract more customers and boost their profitability, according to a report from Kalibrate.

Fewer gas stations, more services

Canada’s retail gasoline outlet count stands at 11,611, showing a 0.9% decline from the previous year. Despite this decrease, the market has remained stable for the last 15 years, with the number of stations hovering around 12,000. This shift reflects the ongoing adaptation of gas stations to the changing needs of consumers.

A rise in car washes and quick-service restaurants

Car washes are now present at one in every four Canadian gas stations, a notable increase from 20% in 2004. Alongside car washes, quick-service restaurants and larger convenience stores are increasingly common. In 2024, over 65% of stations have convenience stores larger than 500 square feet, compared to just 37% in 2004. These added services help drive foot traffic, benefiting both fuel and non-fuel sales.

Decline of traditional services

Traditional offerings, such as full-service pumps and service bays, are becoming less common. Only 9% of stations still provide full-service options, down from over 30% in 2004. Service bays are now present at just one in every 19 stations.

Loyalty programs gain traction

Loyalty programs are on the rise, with 77% of Canadian stations offering them in 2024. Programs like PC Points, Air Miles, and Petro Points dominate, offering customers incentives to return for services like car washes. These programs contribute to customer retention and increased visits.

Original article ‘Car washes growing at Canadian gas stations’ | CarwashPro