How Much Money Does a Laundromat Make? (2024)

FAQs

How much profit can a laundromat make? ›

Answer: Monthly profits can vary widely based on the location, size, and operational efficiency of the laundromat. On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.

While the industry overall is secure, the profit an owner sees can vary dramatically based on their current expenses and revenue. Typical laundromats generate a cash flow of between $15,000 and $300,000 annually. Starting a typical laundromat can cost up to $300,000.

Most laundromats cost between two to four dollars per load. Commercial dryers cost about the same, making the total cost four to eight dollars per load. However, these prices often fluctuate depending on how much time the process takes. Longer washing and drying times often require additional fees.

You have to be a jack of all trades: When it comes to owning a laundromat, you're a plumber, electrician, businessman, marketer, janitor, and a million other things all rolled into one. You don't have to be an expert necessarily, but experience and basic understanding in these areas comes in handy.

Are laundromats a good investment? Laundromats make great cash-flowing investments. With an average, unleveraged return of 20-30%, the average laundromat investment is far superior to the average real estate investment, which will produce between 7-10%.

Initial costs range from $200,000 to $500,000, encompassing purchase or leasing, renovations, equipment, and legal expenses. The exact figure varies based on location, size, and equipment quality. What are the costs and risks of owning a laundromat? Key costs include utilities, supplies, maintenance, and staffing.

With a historically stable ROI, attractive profit margins, and versatility in operation models, a laundromat can be a smart investment decision if done correctly. However, like any business, they come with their challenges—from ensuring regular maintenance to staying ahead of industry threats.

Even without a lot of capital, you can open a laundromat by renting equipment, providing services to local businesses, or using a crowdfunding platform like Kickstarter to raise funds. Coupled with a solid business plan, commitment, and smart management, a laundromat can be a worthwhile investment.

As long as the machines are well-maintained and clean, customers will continue to use them. The minimal staffing requirements also make a laundromat a desirable passive income stream.

Regulars: these are the local residents, especially renters, who consistently use the laundromat for their weekly washing. Given that renters have historically been the prime users of self-service laundry facilities, they form the backbone of the customer base.

How do laundromat make money? ›

Laundry Services: Offering customers additional laundry services is a common method for laundromats to gain additional revenue. Wash and fold, delivery, ironing, and dry cleaning are a few examples of laundry services that can help attract new customers and increase engagement among existing customers.

According to Coin Laundry Association, the annual turnover for a laundry shop can vary significantly and can range between $30,000 and $1 million. However, based on the total market value and the total number of laundromats in the US, the average annual turnover of laundromats is $142,857.

So, how much does one wash cost in electricity? Well, if we look at a typical D-rated, 9 kg washing machine, this uses 0.76 kWh per cycle, which works out at 26p per wash cycle. However, an A-rated washing machine uses 0.49 kWh per wash cycle, so the cost decreases to just 16p per load of laundry.

There is a broad range the machines will take depending on the machine you select and the amount of laundry. The average wash cycle takes between 27 - 35 minutes and dryers between 28 - 42 minutes.

However, laundromat franchises provide a remarkable alternative that combines stability, profitability, and a recession-resistant nature. In fact, they're considered a particularly good and profitable route for new franchisees for a number of compelling reasons.

An Average Laundromat Business

The average laundromat facility is 2,170 square feet, but businesses range from 1,000 to 5,000 square feet. Laundromats are typically open between 6 a.m. and 11 p.m., while some choose a 24-hour model. 70% of laundromats have two employees or less.

Many people find it difficult to do laundry because they have other chores that need doing while they wait for their clothes to dry, such as cleaning up around the house or cooking meals from scratch. At a laundromat, you can get everything done all at once without having to worry about anything else.