Investing in your own laundromat business is a big decision. Like any potential business investor, you’ve probably started researching the ins and outs of the industry. However, with all the information available, it can be hard to know where to turn or who to trust. Let Martin-Ray Laundry Systems save you the headache! We provide laundromat consulting (along with commercial equipment, parts, repair, training, and other services) in Colorado, New Mexico, Wyoming, west Texas, and western Nebraska.
If you’re considering investing in a laundry business, here are some key U.S. laundromat industry statistics you should know:
Industry overview
- Number of Laundromats: There are currently about 35,000 laundromats nationwide.
- Market Size: Laundromats generate about $6 billion in combined nationwide gross annual revenue.
- Revenue per Laundromat: The average laundromat generates about $150,000 in revenue per year.
- Profit Margin: The average profit margin for laundromats is around 20-35%.
- Cash Flow: Coin laundries generate cash flow between $15,000 and $300,000 per year.
Success Rate/Return on Investment
- Survival Rate: Approximately 95% of laundromats succeed over the first five years of operation (higher than average for other small businesses).
- Profitability: Laundromat businesses average between 20-35% ROI.
An Average Laundromat Business
- Facility Size: The average size of a laundromat facility varies depending on the market and location, but generally, businesses range from 1,000 to 5,000 square feet.
- Operating Hours: Laundromats are typically open between 6 a.m. and 11 p.m., while some offer a 24-hour model.
- Number of Employees: Most laundromats operate with a small team, with the number of employees ranging from 0-8, depending on the business model and service offerings.
- Chains/Franchises: While no major chains exist currently, there are a few sizeable laundromat franchises in the U.S.
- Start-up Costs: The start-up costsrange between $100,000 and $300,000.
- Commercial Equipment: Most facilities have between 40 and 100 washers and dryers.
Customers Demographics
- Typical User: Low income individuals, renters, college students and working-class families are the primary users of coin laundries.
- Gender: More than 60% of laundromat patrons are women.
- Proximity: 87% of customers live within a mile of the facility.
- Household Income: Laundromat customers’ median household income is $28,000.
- Repeat Customers: 90% of patrons become repeat customers.
Please note that vended laundry business (and customer) characteristics and performance can vary enormously depending on location, size, and services offered. For example, laundromats that offer card-operated machines, loyalty programs, and additional services like wash & fold, dry cleaning, and pickup/delivery can see increased revenues but also require additional employees. Overall, the industry remains quite stable, with laundromats experiencing consistent revenue growth and profitability due to the essential nature of their services.
If you’re interested in taking the next step to turn your laundromat dreams into a reality, contact Martin Ray’s knowledgeable team of experts today!
*These statistics were based on research from laundry industry experts and other authoritative sources such as IBISWorld, WorldMetrics, and the Coin Laundry Association
