Is It Profitable to Own a Laundromat?

by

Overview of Laundromats

  • Laundromats are places to wash clothes, open 24/7.
  • Customers provide labor, reducing employees, saving salaries and benefits.
  • Marketing is vital to attract and retain customers.

Financial Aspects of Laundromats

  • The Coin Laundry Association states laundromats generate $5 billion gross yearly revenue.
  • Laundromats range in value from $50,000 to over $1 million, generating $15,000 to $300,000 per year.
  • Industry overview shows 35,000 laundromats in the U.S.
  • Self-service laundromats have coin/card-operated washers/dryers.
  • Full-service laundromats offer washing, drying, and folding.

Business Strategies for Laundromats

  • Laundromats make about 20-35% cash-on-cash ROI, much higher than most investments.
  • The average laundry customer spends $1.50-$4 per load.
  • Weekly revenue is typically 50% of washing revenue.

Challenges to Laundromat Ownership

  • Laundromats fail mainly due to poor location.
  • The equipment needs maintenance every 5-7 years to prevent failure.
  • New competitors can negatively impact business.
  • Neglecting maintenance work and good management can lead to failure.

Leave a Comment