Redefining the Laundry Industry
Laundromats have long been considered recession-resistant, staying highly profitable through economic downturns. That stability was amplified during the recent pandemic, as laundromats were one of few businesses to be designated "essential."
With an ultra-high success rate of 94.8 percent, a cash-on-cash ROI of 30 to 40 percent, and a simple management structure, laundromats are an attractive investment, regardless of the economic landscape.
Laundromats with proven track records are sold with relative ease and at top dollar. Just like other types of real estate, laundries appreciate in value. If you've run a profitable laundry and five years later decide to sell, you may expect to find a buyer quickly and, in most cases, your laundry will command a much higher price than you paid. In many cases, stores pay for themselves in just a few years, leaving you with a 'nest-egg that may be far better than a conventional savings account, IRA, 401k, money market, or mutual fund.
Progress Photos
Consider some of the benefits of a laundromat.
Owners choose Speed Queen laundry equipment for its reliability, efficiency, and profit-producing control platforms.
- Absentee ownership.
- Tax deductions are available using section 179 and bonus depreciation.
- Laundromats have always been considered recession-resistant. Now with the current pandemic, it has built on this strength with an "essential business" title.
- Average of 30%-40% ROI!
- Washing laundry is a repetitive necessity of life like food, clothing, and shelter.
- Virtually no inventory control shrinkage, spoilage, or theft.
- Laundromats can be run successfully on a part-time basis.
- The card system or the coin box is a cash register, and you get paid up-front for use of the machines.
- Good for Retirement!
- Stable Income!
- Laundromats are scalable, therefore future expansion or multiple-store ownership can be achieved.
- Labor is minimal. An attendant keeps the store clean and handles the wash/dry/fold service.
- This is not a franchise therefore there are no franchise fees.
A laundromat from SLE can be a very rewarding experience! We have worked with many entrepreneurs like you. At SLE, we are your full-service laundromat source! We can guide you with such things as securing a location, lease, permits, and installation of the equipment, with you the customer making all the final decisions.
Recent Laundromat Projects
An in-depth look inside some of our customer's laundromats.
Patio Laundry I
Brookhaven, GA
Clean Wave Laundry
Hickory, NC
Laundromart
Atlanta, GA
FAQ for Laundromat Owners
Every investment has its advantages and disadvantages depending on your own personal business goals. Owning a laundromat is no different. But with a unique combination of stability, flexibility, and profitability, laundromat investments are in a class all by themselves. Before you get too far into the laundromat investment process, you first have to determine if the laundromat business suits your financial means, personal needs, and investment goals.
How much money can I make owning a laundromat?
This will depend on several factors. On average you can expect to gain a 30% return on your investment.
How much time will be dedicated to operating my laundromat?
You decide. Your laundromat investment can be either a full-time or part-time commitment. Many successful laundromat owners choose to keep their current jobs since the business is so flexible. In 2012, 63% of laundromat investors listed their laundromat business as their full-time occupation, while 36% were part-time. Your time commitment also depends on how many employees you wish to hire. Employees add to your overhead costs but allow you to offer additional profit-generating services, such as laundry drop-off. 70% of laundromat business investors employ 0-2 attendants.
How many machines will I need?
You can tailor your laundry business to match the size of your investment and the demographic needs of the area. The amount of equipment you will need largely depends on the size of your store. Your Speed Queen representative will assist you in choosing the ideal amount and types of machines, but in general, you will need a combination of between 40 and 100 washers and dryers.
How many hours per day does my laundromat need to be open?
Your business hours are up to you. Keep in mind that the longer you are open, the more opportunity for revenue you'll create. When you also consider that laundromats do not require large staffs, long business hours won't require major increases in labor costs. Typical laundromat hours are from 6 a.m. to 11 p.m., with many choosing a 24-hour model.
How much space do I need?
Laundromats range in size anywhere between 1,500 and 6,000 sq. ft. The average new facility is 4,000 sq. ft.
What are the advantages of building a new laundromat?
- Statewide can offer you a choice of the best location from several locations.
- You get to choose the design of the store and the equipment mix.
- The infrastructure is new, like the equipment, and won't need to be replaced soon.
- The tax advantages are greater for a new business.
- Offers the best cash flow and return on investment, with the least amount of risk, the best equity build, easiest financing and the best exist strategy.
We have worked with many entrepreneurs like you. At Statewide, we are your full service coin/card laundry source! We can guide you with such things as securing a location, lease, permits and installation of the equipment, with you the customer making all the final decisions.
What are the advantages of buying an existing laundromat?
- It may offer an established customer base.
- It will have existing cash flow.
- It has an existing lease.
- As long as you can establish the value of those items, an existing store may be the best way to open a laundromat.
We have worked with many entrepreneurs like you. At Statewide, we are your full service coin/card laundry source! We can guide you with such things as securing a location, lease, permits and installation of the equipment, with you the customer making all the final decisions.
How much money do I need to open a laundry?
It depends on the size of your new laundromat and the cost to build it. Typically, investors put around 30%- 40% into the beginning costs of construction and equipment, and then finance the balance. It is recommended to have additional cash available that can be used while your new laundry ramps up its customer base and gross revenue, up until you have reached your initial breakeven point.
What demographics should I look for in an ideal laundromat location?
An area's overall population, family size, average age, percent of renter population, and median household income are all important factors in determining an ideal laundry location. These mentioned elements, plus others that an experienced distributor will examine, determine whether the location will be successful.
What kind of services should I have in my laundromat?
Attracting and retaining more customers are the keys to a successful laundromat. Here are the leading services that you should think about having in your laundromat:
- Wash, Dry & Fold
- Retail Sales
- Vending Machines
- Dry Cleaning
What characteristics make a good laundromat?
Why should I open a laundromat?
This is typically the first question always asked. When considering additional benefits such as independence, flexibility, modest costs, recession resistant and pandemic resistant, there truly is nothing like owning a laundromat.
How much of the total cost of building a laundry can be financed?
Investors Talk
A look inside the success of SLE customers.
Flexible investment means more family time for Sanford investor.
Kurt Schroeder from Tampa saw huge potential in investing in a laundromat.
Co-owners of the Crystal Clean Laundromat talk about the artwork that won them $100,000
*This is not a Franchise or Business opportunity. Nothing contained herein shall be construed as creating a franchise relationship.
