Published November 9, 2023

Coin-Operated Laundromat Business Plan: A Practical Guide for First-Time Owners

A coin-operated laundromat remains one of the most stable and straightforward small businesses to own, especially in urban areas with dense rental populations. These cash-based operations generate consistent revenue by offering a convenient service that nearly everyone needs. Whether you’re purchasing an existing location or starting one from scratch, a strong business plan will help you clarify your goals, secure financing, and run a profitable laundry business.

Why Focus on Coin-Operated Laundromats?

While many modern laundromats are adopting card or app-based payments, coin-operated models still perform well in neighborhoods where customers prefer cash or are unfamiliar with digital wallets. Coin systems are relatively simple to install and manage, with low software requirements and limited reliance on internet connectivity. They also allow you to start with lower upfront costs while serving a wide audience that values affordability and routine.

Appeals to customers who prefer cash payments
Low reliance on mobile apps or internet connection
Easier to manage in communities with limited digital access
Lower upfront cost compared to full POS systems
Proven, resilient model in many working-class neighborhoods

Start with a Clear Business Plan Outline

A coin laundromat business plan should outline your market, services, location, financials, and operations. This roadmap helps investors and lenders understand your goals—and gives you clarity during each phase of setup and growth. Include sections that address startup costs, revenue projections, equipment needs, and local market demand.

Executive Summary: Business concept, goals, and location overview
Market Analysis: Neighborhood demographics, competitors, and foot traffic
Services: Self-service coin laundry, vending, possible wash-and-fold
Marketing Plan: Local outreach, signage, promotions
Operations: Hours of operation, maintenance, and staffing (if any)
Financials: Start-up budget, 3-year revenue forecast, break-even timeline

Understanding the Target Customer

Coin laundromats often serve renters, students, and workers without in-unit washers or dryers. These customers value convenience, cost-efficiency, and accessibility. Your business plan should describe this core audience and explain how your location, pricing, and layout are designed to meet their needs.

Renters in apartments or multi-unit housing
College students living off-campus
Low-income and cash-based customers
Workers with limited time who prefer quick cycles
Immigrant and senior populations familiar with coin-operated machines

Location and Equipment Strategy

The success of a coin-operated laundromat is closely tied to location and equipment choice. A high-traffic spot near apartment buildings or public transportation increases visibility and walk-in traffic. Your machines should be reliable, efficient, and sized to fit the needs of your community—consider top-loaders for small loads and large front-loaders for bulk users.

Choose a location near apartment complexes or transit lines
Ensure easy parking or walk-in access
Select a balanced mix of machine sizes
Prioritize durable equipment that accepts coins and can be upgraded later
Plan for security cameras, lighting, and coin collection safety

Estimating Costs and Revenue

Coin laundromats typically cost less to launch than cashless operations, but owners still need to budget for equipment, buildout, utilities, and maintenance. Revenue depends on machine usage, pricing per cycle, and additional services like detergent vending or small wash-and-fold options. A well-placed laundromat can generate steady income with a profit margin between 20% and 35%.

Startup cost range: $150,000–$350,000
Washer pricing: $2.50–$5.00 per cycle depending on size
Dryer pricing: $0.25–$0.50 per 5–10 minutes
Monthly revenue potential: $10,000–$25,000+
Profit margin: Typically 20%–35% after expenses

Operations and Maintenance

Coin laundromats can be fully unattended, but many successful operators choose to visit daily or hire part-time staff to maintain cleanliness and customer satisfaction. Your business plan should outline how you’ll handle coin collection, machine repair, and customer complaints. Preventive maintenance is key to reducing downtime and preserving customer trust.

Daily coin collection and deposit
Regular machine cleaning and lint trap checks
Maintenance schedule for belts, drums, valves, and hoses
Clearly posted phone number for issues or refunds
Routine security checks for safety and vandalism prevention

Marketing and Promotion Plan

Even coin laundromats benefit from strong local visibility. Use bold signage, window decals, and local flyers to attract new customers, especially in your first 90 days. Offer small promotions like free drying days or detergent samples to get foot traffic through the door.

Window and sidewalk signage with hours and pricing
Local flyer drops in apartment complexes
Partnerships with nearby businesses for cross-promotion
First-wash-free or free-dry day promotions
Google Business listing and Yelp profile to capture searches

Conclusion

A coin-operated laundromat remains a reliable, low-overhead business opportunity—especially when launched with a clear, detailed plan. By choosing the right location, managing costs carefully, and delivering a consistent customer experience, you can generate dependable income while keeping operations simple. A well-executed business plan not only helps you start strong, but also sets the stage for long-term stability and potential expansion.