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.
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.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins.
The cost of equipment required to start a laundromat varies from around $20K to as much as $500K or more. Initial startup costs can be quite significant for a seemingly 'set-and-forget' kind of operation. However, the lack of required labor once a startup is complete can outweigh the cost of starting a laundromat.
The average laundromat serves 300+ people per day and the average length of visit is one hour. Coin-operated laundromats in the US generate nearly $5 billion in gross revenue.
A coin-operated laundromat can be a profitable business, but there's also a high risk of it attracting thieves. You'll also need to keep cash on hand to provide customers with change for the washers and dryers.
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.
While not legally required, there's a compelling case for starting your laundromat as a limited liability company (LLC).
Neglecting or mismanaging your business
Bad management is the top reason why many laundromats eventually fail. All too often, a person will purchase a laundromat with the idea that as long as they collect their earnings every week or two, the business will continue running.
We talked to the Laundromat Millionaire, Dave Menz, who owns four laundromats and makes nearly $2 million annually. He even helps other business owners navigate the industry to get more customers, become a full-service laundromat, and outshine absentee owners.
On a typical scale, launching a laundromat will set you back anywhere from $200,000 to $500,000. Your financial footprint hinges on whether you're breathing new life into an existing establishment or embarking on a ground-up venture, coupled with the prevailing real estate climate in your locale.
If you keep the laundromat clean, the machines in good order, and offer good customer service, chances are you'll see between 20-35% ROI (return on investment).
Setting up a new laundromat will initially take time as you get to know your customers and their needs, but there is generally very little maintenance once you get established. Depending on the type of store you want to open, you could manage your laundromat in just a few hours every week.
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.
Laundromats have long been seen as steady and reliable businesses. But if you're considering entering the laundry industry, you're likely asking, “Are laundromats a smart investment?” The answer, for many, is a resounding yes. Typically, see an ROI return on investment) of between 25-30% a year.
A great laundromat location is on a main roadway, highly visible, and has plenty of parking with easy access. Also take note of the surrounding businesses and what type of clientele they draw in. Grocery, convenience, auto parts, and check cashing stores make excellent neighbors for laundromats.
By now, you know that the average laundromat makes $300K annually with 20% to 30% profit margins.
Yes, a business license is required to open a laundromat. Depending on where your laundromat will operate, more than one license may be necessary. Some municipalities require a local business license as well as one at the county or state level.
Question- How many washing machines and dryers should I have in my laundromat? Answer- The number of machines depends on the size of your space and anticipated customer demand. A common starting point is around 2-3 washers and dryers per 100 square feet.