Wednesday, April 16, 2025 / by Adam Donaldson-Moxley
The Battle of Convenience: Coffee Drive-Thrus vs. Car Washes in Arizona
Arizona is experiencing a surge in two seemingly unrelated industries—coffee drive-thrus and express car washes. While they serve different purposes, their growth is fueled by similar trends: a car-centric culture, rapid population growth, and a preference for speed and convenience. But which industry has stronger long-term potential? Let’s break it down.
Why Are These Industries Booming?
Arizona’s lifestyle is built around driving—long commutes, suburban expansion, and a climate that discourages walking. These factors make quick-service businesses highly appealing.
- Coffee drive-thurs thrive on daily rituals, emotional connections, and an immediate caffeine fix
- Car washes benefit from subscription models, promising clean cars with minimal effort
Both industries capitalize on consumer psychology, but they do so in different ways.
Consumer Behavior: Key Differences
Factor | Coffee Drive-Thrus | Car Washes |
---|---|---|
Frequency | Daily or multiple times/week | Weekly or biweekly |
Impulse vs. Necessity | Impulse-driven, tied to routine | Maintenance-driven, weather-dependent |
Real Estate Needs | Small footprint, high traffic areas | Larger lots, more infrastructure |
Revenue Model | Single purchases, some subscriptions | Shift toward membership models |
Loyalty | Strong emotional connection, brand-driven | Memberships = recurring revenue |
Who Has Stronger Growth Potential?
Each industry has its own strengths:
- Coffee drive-thrus win on frequency and emotional attachment but face higher labor cost and operational challenges
- Car washes are adopting subscription-based revenue, leading to high margins and predictable cash flow
The Dopamine Effect: Why We Spend
Ever wonder why we feel good after buying coffee or getting a car wash? It’s all about dopamine and instant gratification.
- Coffee: Anticipation and reward, getting a latte is a personal treat
- Car washes: the before-and-after effect, driving away in a sparkling clean car creates a sense of accomplishment
Experiential Spending & Perceived Luxury
Both coffee and car washes fall under affordable luxuries—small, guilt-free indulgences that make daily life feel a bit better. But different income groups perceive them differently:
- Lower-income earners see them as aspirational luxuries but spend a higher proportion of their income on them.
- Middle-income earners integrate them into routine spending.
- High-income earners seek premium experiences but don’t consider them luxuries.
The Profitability Model: Which Wins?
- Coffee drive-thrus: Strong brand loyalty but high labor and supply costs
- Car washes: Lower overhead and subscription-based stability, making them highly scalable.
Final Thoughts: Where’s the Smart Money?
Both industries are booming, but the subscription model gives car washes a long-term edge in revenue stability. However, coffee’s emotional connection and impulse-driven nature ensure its relevance in everyday life.
For investors, understanding these models helps strategically position real estate and retail investments. Whether you’re considering a coffee franchise or a car wash development, the key is leveraging consumer habits, psychology, and profitability models to make informed decisions.