The decline in laundromats shows how US cities are changing (2024)

FAQs

Why are laundromats still a thing? ›

Not only are laundromats crucial parts of tightly-knit urban communities, but also they serve as essential businesses during this uncertain time. And while laundromats continue to be a safe, often lucrative investment, smart business practices are a must.

Nearly 94.8% success rate (5)

All the benefits of a profitable investment––without all the risks.

That number is 30%. So 30% of the US population (317,000,000) is 951,000. I believe these numbers are plausible as I work in a real estate office and this is based on trends. What do you think about people doing laundry at the laundromat?

There are 18,304 Laundromats businesses in the US as of 2023, a decline of -1.4% from 2022.

Laundromat machines are highly efficient and use much less water than washing machines at home. At a laundromat, the washing machines typically use only 15 gallons of water, while an average washing machine at home generally used double that amount. That will save you money on your utilities.

There are currently about 35,000 laundromats nationwide. Laundromats generate about $5 billion in combined nationwide gross annual revenue. Coin laundries can range in market value from $50,000 to more than $1 million.

As long as their clothes get clean and it's not too sketchy of a place, they're good. But, since 75-85% of the environmental impact of our clothes comes from washing and drying, it's worth considering. The good news is, most laundromats are greener than they've ever been.

Laundromats are actually quite recession-resistant. Unlike other businesses, people still need to wash their clothes even when money is tight. So, while you may see a decrease in business during a recession, it is unlikely that your laundromat will go out of business.

Unlike traditional retails businesses, laundromats have very little physical inventory. That means minimal ordering, rotating, or discarding products, which makes for easier management. It also means you won't have to deal with preparing and storing large amounts of expensive inventory ahead of time.

How much do laundromat owners make? ›

The average laundromat makes between $450-$500 per day. This includes revenue from the washers, dryers, and other secondary income streams such as vending revenue. The range of daily income from self service laundry is around $100 per day to $1,500 per day. You might be thinking, that's a huge range!

They also have more machines, which means you can get your laundry done faster. Plus, laundromats are typically cheaper than doing laundry at home, and they offer more convenience since you can do your laundry any time of the day or night.

Tom Benson, the owner of the World's Largest Laundromat—as it is simply and straightforwardly known—views the laundromat less as an ordinary facility and more as a “third place,” a community gathering space outside of home and work. Benson dedicated his spare time to perfecting the laundromat.

Located in Berwyn, Illinois, the huge coin-laundry facility is more than 13,000 square feet and has more than 300 machines.

Most laundromats have the same equipment, detergent and processes for washing clothes, not taking into consideration the kind of clothes and the fabric. A laundry service on the other hand has an array of machines and washing aids peculiar to different clothes and fabrics.

Dave Menz's initial purchase of a run down laundromat he found on Craigslist has led him to becoming a millionaire. Here's how he did it – and you can, too. As of 2022, there are 18,264 laundromat businesses in the United States that generate about $5 billion in combined nationwide gross annual revenue.

Whether you're creating a brand-new business or buying an established company, it isn't uncommon for entrepreneurs to spend anywhere from $200,000 to $500,000 opening an average-size laundromat. The funds you'll need to open a laundromat have everything to do with the type of laundry business you're starting.

Bed bugs can hitchhike from home to home through laundromats. Here are some tips to help you keep bed bugs from getting into your clean clothes. Check for bed bugs before use. Don't set baskets on the floor or near seats.

The average lifespan of commercial washing machines is 10 to 14 years, which is quite a noted accomplishment when considering that the machines are constantly in use. There is no difference in the type of cycle being used, whether delicate or heavy duty, all cycles equal one wash load.

What is the future of laundry services? ›

A 2021 Market Report found the global dry cleaning and laundry industry is expected to grow from $93 billion in 2020 to $127 billion by 2025. Over the years, the demand for cleaning and laundry services has recorded strong growth from residential, commercial, and industrial sectors.

Most laundromats provide vending-machine detergent. Some even supply you with detergent for free. Nevertheless, you may wish to bring your own because of preferences or allergies. Jugs of detergent and softener can be cumbersome, so invest in travel-sized containers.

Laundromat machines have larger commercial machines designed to be operated with quicker cycle times. As customers generally wait for their laundry to be done, machines are designed to reduce cycle times whilst maximising cleaning.

Laundry services help you keep your clothes in good shape, use less products, and overall save you long-term expenses that you can breed from not being a professional.

During the pandemic, laundromats were one of the few businesses that remained open, proving that the industry is extremely resilient and will continue to provide store owners with dependable income in 2023 and beyond.

While not entirely passive, laundromats do provide a high rate of return, usually 20-25%+, for a minimal amount of time investment. Any business that deals with people and equipment will need some managing, but there are ways to set up your laundromat business to make it relatively passive.

A commercial cleaning company is about as recession proofed as it gets. You may even bring in more business. Sometimes, when times are bad, a business that has a custodial staff will lay them off – and then outsource the cleaning to a commercial cleaning company.

High utility costs

A laundromat relies on electricity, water and sewage for daily operations. As utility costs increase, you might find it hard to turn it into a profitable business. While you can't control inflation, you can definitely control the energy and water efficiency of your equipment.

The life of a Laundry Worker is hard work. Expect long hours in hot rooms filled with steam, and lots of time on your feet. You also often have to wear protective gear, like rubber gloves or paper masks, in order to keep yourself safe from diseases.

Is a laundromat an easy business? ›

Running a laundromat is fairly straightforward – the equipment is easy to maintain, labor costs are low and there's no inventory involved. It's also a reliable source of income, as you can expect a steady stream of customers at any time of the year.

Commercial dryers have larger drying cylinder sizes, higher airflow, and higher BTU ratings all of which help to reduce drying time and increase the efficiency of the laundry process. …

Cost of the machinery and installation and maintenance. Cost of the clerk and accountant and shopkeeper and painter and cleaner. Cost of insurance and health care and social security of the clerks and attendants and the accountant and the tax specialist.

A typical laundromat returns between 25%-35% return on investment (ROI).

So when are laundromats the busiest? As a general rule, laundromats are most crowded on weekends. Since most people work Monday to Friday, they save their visits to the laundromat for Saturday or Sunday. According to American Coin-Op's survey of self-service laundries, Sunday tends to be a bit busier than Saturday.

Throughout the 1960s and 1970s, laundromat usage soared. They were particularly common in cities, where lower-income residents needed an affordable way of keeping clothes clean.

The only task less popular was laundry, which just 8% of the billionaires said they tend to do. There are myriad reasons why at least some members of the super rich still do these ordinary tasks. Amazon founder Jeff Bezos and Microsoft cofounder Bill Gates–the world's No.

Washateria: The First Laundromat

The first self-service laundry facility was known as a Washateria and opened to the public on April 18, 1934 in Fort Worth, TX.

What is the average profit margin for a laundromat? ›

But an owner who runs his or her store well – who keeps it clean, repairs its equipment quickly, uses energy-efficient systems, and offers good customer service – can expect to see profit margins of about 35 percent annually (source). Owning a laundromat can offer you freedom and security in a mature market.

However, the laundromat never quite disappeared. They provide an alternative to having to own your own machines, and put clean clothes within relative reach of many people. Laundromats weren't just for people without the means of purchasing machines, they provided a degree of convenience.

The washateria became formally known as the laundromat, which is believed to have been derived from a combination of the words "laundry" and "automat"—the latter being used to describe a type of restaurant where food and drink were obtained through a series of vending machines.

You could save money using a laundromat. The average cost of doing a load of laundry at our laundromat is around $5. This includes washing and drying. The average cost of doing your laundry at home is $2-$3 per load but does not account for the cost of buying or maintaining your machines.

With an ultra-high success rate of 94.8 percent, a cash-on-cash ROI of 20 to 35 percent and a simple management structure, laundromats are an attractive investment, regardless of the economic landscape.

Director Steven Soderbergh Takes A Look At Money Laundering In 'The Laundromat' Director Steven Soderbergh looks at money laundering and the Panama Papers scandal as if they were elements in a heist comedy in his new satire, The Laundromat.

Although the stock market provides a great opportunity to grow your wealth, putting a little time into a new business could be much more lucrative. For example, the average return on investment of a laundromat business is 20% to 35%, a much higher return than the S&P 500 has historically provided.

Do Not Leave Clothes Unattended After Washing/Drying Cycle. No one wants to be that person who has their clothes removed from the machine if they are left unattended. Proper laundromat etiquette is simply setting a timer on your phone for your load's cycle. Laundromat cycles typically last 20-40 minutes.

1. High Success Rates. A recent Gallup poll found that 66% of potential entrepreneurs are held back by the fear of business failure. However, one study found that laundromats have an extremely high rate of success – approximately 95% of laundromats succeed over a five-year period.

Is money washing a crime? ›

Money laundering involves disguising financial assets so they can be used without detection of the illegal activity that produced them. Through money laundering, the criminal transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source.

Money laundering is ipso facto illegal; the acts generating the money almost always are themselves criminal in some way (for if not, the money would not need to be laundered).

Bed bugs can hitchhike from home to home through laundromats.

Neat and clean bedding goes a long way in ensuring a healthy, good night's sleep. Of course, washing bedding regularly can be a challenge merely because of its bulky size which is why these items are best washed at a laundromat instead of at home.

Many people take their comforters to be washed at a Laundromat since most have high capacity washers that will give your comforter enough room to be washed correctly. It's best that your comforter be loosely placed and not firmly packed inside the washer.