Laundromats (also known as coin laundries) are a fixture in many American communities, providing space for people to wash and dry clothes when they don’t have laundry machines at home. These businesses are surprisingly common – there are an estimated 30,000–35,000 laundromats across the United States, together generating around $5–6 billion in annual revenue. Laundromats offer an essential service (clean clothes are a basic need), and they tend to have steady demand year-round.
The Laundromat Business Model
A laundromat’s core business model is self-service laundry. The owner outfits a retail space with commercial-grade washers and dryers, and customers pay per use to do their laundry on-site. Historically these machines were strictly coin-operated (hence the name “coin laundry”), but many modern laundromats also accept debit cards or reloadable laundry cards – the principle remains the same. Customers walk in, load their clothes into a washer or dryer, insert payment, and use the machine for a cycle. No appointments or staff assistance are required for the basic service. Because patrons pay upfront for each wash or dry cycle, the business doesn’t carry inventory or receivables like a retail store would – there are no products to stock and no customer credit to manage. This translates to immediate cash flow from the machines and a relatively simple operation.
Importantly, laundromats fulfill an ongoing, nondiscretionary need. People always need to wash clothes, so demand is consistent even if the economy fluctuates. In fact, laundromats often see stable or increased use during economic downturns, when more people rent homes or can’t afford personal laundry appliances. The long-term leases typical for laundromat locations (often 10–25 years) help lock in a location and build a loyal customer base over time. Many laundromats are cash businesses (though card systems are growing), which means daily income is generated in small increments from each load. While profit margins can vary, industry sources often cite net margins in the 20–35% range for laundromats – higher than many small businesses, partly because of the lower labor and inventory costs. Overall, the laundromat model is about providing convenient access to laundry facilities and earning revenue one wash or dry at a time.
Typical Laundromat Setup and Services
A traditional laundromat’s physical setup is straightforward. The business usually occupies a retail space of about 1,000 to 5,000 square feet, often in a strip mall or on a busy urban street. Inside, the space is filled with rows of washers and dryers – typically heavy-duty front-loading washing machines and large-capacity tumbling dryers lining the walls or arranged in islands. A single laundromat may have dozens of machines (on the order of 40–100 total washers and dryers in a larger store) to accommodate multiple customers at once. In addition to the machines, the store is equipped with practical amenities for customers: folding tables where people can fold their clean laundry, rolling laundry carts to move loads around, and seating areas or benches to wait while cycles run. Many laundromats also have a change machine (to exchange bills for quarters if machines are coin-operated) or a card kiosk for adding credit to laundry cards. For customer convenience, laundromats often provide vending machines that sell single-use packets of detergent, fabric softener, dryer sheets, as well as snacks or drinks. Restrooms might be available, and some locations have TVs, Wi-Fi, or magazines to help patrons pass the time.
The services at a laundromat center on self-service usage of washers and dryers. Customers typically bring their own detergent and handle their entire laundry process from start to finish. Standard pricing might be a few dollars per wash load (varying by machine size and local prices) and a similar pay-per-use for dryers (for example, a certain number of minutes of drying time per quarter). Drop-off laundry service (wash-and-fold) is another common offering at many laundromats: customers can leave a bag of dirty clothes, and the staff will wash, dry, and fold it for a fee (usually charging by the pound of laundry). This full-service option caters to people willing to pay for convenience, and it provides laundromats with a secondary revenue stream. Some laundromats also act as neighborhood dry cleaning drop-off points – they partner with a dry-cleaning facility, so customers can leave garments to be dry-cleaned and pick them up later. However, the core service remains self-service laundry, which requires minimal staffing. Not all laundromats offer attended services, but those that do usually have an employee on-site to handle the wash-and-fold orders and assist customers. Many stores, especially smaller ones, operate unattended, meaning no full-time staff is present – customers serve themselves, and the owner or an employee comes by only to clean and maintain the facility. Whether attended or not, cleanliness and safety are priorities in the setup: owners ensure the premises are well-lit, machines and floors are kept clean, and security cameras may be installed if the laundromat is open late or 24/7.
Operating hours for laundromats are generally long to suit customer schedules. A typical laundromat might be open from about 6 a.m. until 10 or 11 p.m. daily. Some locations even run 24 hours, allowing shift workers and late-night users to do laundry at any time. Extended hours are a competitive advantage, since many customers prefer to do laundry in early mornings, evenings, or on weekends. Within those hours, usage tends to spike on weekends when people catch up on household laundry chores. A laundromat’s layout and service mix are designed to be self-guided and convenient – the goal is to let customers come and go easily, complete their laundry with minimal hassle, and hopefully return regularly.
Laundromat Ownership & Business Structure
The laundromat industry in the U.S. is characterized by small, independent ownership. Most laundromats are run by individual owner-operators or families, rather than large corporations. In fact, the industry has very few national chains – no major franchise dominates the laundromat market. (There are a handful of regional laundromat franchises, but they represent a small fraction of all stores.) This means when you visit a laundromat, it’s likely a locally owned small business. Owners often either manage the store themselves or hire a small staff. According to industry statistics, most laundromats have anywhere from 0 up to 8 employees at most. An unattended self-service laundromat may have no on-site employees (the owner handles maintenance and collection off-hours), whereas an attended laundromat with additional services might employ a few people to cover various shifts and tasks. Even in attended stores, the employee count is low compared to other businesses – perhaps one person on duty at a time to oversee the shop, keep it clean, and help customers.
Because laundromats don’t require a large staff to operate, some owners choose to run multiple locations. It’s not uncommon for a successful owner to operate two or three laundromats in different neighborhoods, managing them either personally or with a small team. The ownership structure is typically a sole proprietorship or small LLC, and many owners view laundromats as a steady, cash-generating investment. Notably, industry surveys show that laundromat businesses have a high success rate relative to other small businesses – one report cites about a 95% survival rate in the first five years for laundromats. This is attributed to the consistent demand for laundry services and the simpler operations (fewer variables like perishable inventory or complex supply chains). Of course, running a laundromat still requires upfront investment (machines and leasehold improvements can cost a few hundred thousand dollars to set up) and good management. But there is a long history of mom-and-pop laundromats thriving for decades, often passed down in families or sold to new small business owners when the original owner retires. In summary, the industry is fragmented and locally driven, with thousands of independent operators each serving their own community’s laundry needs.
Revenue Streams in a Laundromat
Laundromats generate income through a handful of straightforward revenue streams, mostly related to the use of laundry machines. The primary source of revenue is the money customers pay to use the washing machines and dryers. Each washer or dryer cycle has a price (for example, a wash load might cost $3–5 and drying might cost $0.25 per minutes or a flat $2–3 per load, depending on the machine and market). Over the course of a day, as multiple customers run loads, these small fees add up. A moderately sized laundromat (with, say, 20–30 machines) can often gross on the order of $100,000 to $300,000 per year just from self-service laundry usage. Nationwide, the average store’s annual revenue is around $150,000, though actual figures vary by location and size. It’s largely a volume-driven business: the more “turns” (cycles) per day each machine achieves, the higher the revenue. Many operators track cycles per day per machine as a key metric, since a busy location might see each washer used 5–8 times per day, whereas a slower store might only get 2–3 turns per day.
In addition to the self-service machine income, laundromats often have secondary revenue streams that can boost their earnings:
Vended Supplies and Amenities: Nearly all laundromats have vending machines or dispensers selling laundry supplies like single-load boxes of detergent, bleach, and softener. They may also house snack or drink vending machines. While these sales are smaller, they provide convenient extras for customers and extra dollars for the owner. Some laundromats also have coin-operated arcade games or kiddie rides, or an on-site ATM that earns a transaction fee – every little ancillary service can contribute to revenue.
Wash-and-Fold Service: If the laundromat is attended, offering a wash–dry–fold laundry service can be a lucrative add-on. Customers drop off bags of dirty laundry and the staff launders it for a fee (often charging around $1–$2 per pound of laundry). Because of the added labor, wash-and-fold service commands a higher price and margin than self-service. Even a few regular drop-off clients (such as local businesses or busy families) can generate a steady weekly income for the store. Many laundromat owners report that wash-and-fold orders provide a nice supplement to the coin machine revenue, and they can schedule this work during slower hours of the day.
Dry Cleaning Drop-Off: Some laundromats partner with dry cleaning operators. The laundromat will accept clothing that needs dry cleaning from customers, then send those items out to a wholesale dry cleaner and get them back in a day or two for customer pickup. The laundromat earns a commission or markup on each item. This service is convenient for customers and brings in additional business, though it’s a smaller portion of revenue compared to washing and drying.
Other Miscellaneous Services: A few laundromats might offer niche services like garment pressing/ironing or tailoring, but these are less common in a traditional coin-op setting. The bread and butter of the business remains the self-service laundry fees, with the other services providing incremental income. Notably, the combined revenue from these sources can make a well-run laundromat quite profitable – after covering expenses, owners often see healthy cash flow. (It’s typical for a laundromat to produce cash flow in the tens of thousands of dollars per year for the owner.)
Key Cost Drivers and Expenses
Running a laundromat comes with a variety of operational costs that eat into those revenues. The major cost drivers for a laundromat include facility expenses, utilities, equipment upkeep, and any labor. In general, laundromats benefit from not having to buy inventory for resale, but they do have significant fixed costs. Here are the primary expenses a laundromat owner must manage.
Rent and Lease Costs: Most laundromat owners lease their storefront. Rent (or mortgage if the property is owned) is often the largest fixed expense. A laundromat requires a commercial space with the proper utility hookups, and these spaces – especially in cities – can be costly to rent. Leases are typically long-term. In addition to base rent, owners may pay common area maintenance (CAM) fees, property taxes, and insurance as part of the lease or separately. Securing a reasonable long-term lease is crucial because high rent can heavily cut into profit
Utilities (Water, Electricity, Gas): Utility bills are the single biggest ongoing expense for most laundromats. Think of the water and sewer charges for all those washers, the electricity to power washers and facility lighting, and the gas (or electricity) to heat the dryers. Constant machine use adds up to substantial utility usage each month. Efficient water heaters and well-maintained equipment can help control these costs, but utilities will always be a significant percentage of revenue. An owner must monitor utility rates and usage carefully.
Equipment Maintenance and Repairs: The washers and dryers in a laundromat are commercial machines that take heavy wear and tear. Maintaining them is both essential for continuous service and a notable cost. This includes routine preventative maintenance (cleaning lint filters, checking belts, servicing water pumps, etc.) and fixing breakdowns. Owners need to budget for replacement parts and repair labor. Every few years, some machines may need to be replaced entirely as they reach end-of-life. Keeping equipment in good working order not only costs money but also determines the business’s ability to earn – out-of-order machines mean lost revenue until they’re fixed.
Labor (Staff Payroll): While many laundromats run with minimal or no staff on-site, any attended laundromat will have payroll expenses. Employees or attendants need to be paid hourly wages. Even an unattended store might incur labor costs for routine cleaning (an owner might pay someone to mop floors, clean machines, or empty trash a few times a week). If the business offers wash-and-fold, the labor time to process those orders is a major cost (though the service is priced to cover it). Owners have to weigh the benefit of having staff (better customer service, ability to offer more services) against the additional cost.
Insurance and Licenses: Laundromats carry business insurance – typically liability coverage (in case a customer is injured or machines cause damage) and property insurance for the equipment. Insurance is another monthly cost, as are any required local business licenses or permits (some cities require special laundromat permits or health/sanitation inspections). These costs are relatively modest but necessar
Supplies and Miscellaneous: Day-to-day operations require various supplies: cleaning supplies (detergents, mops, trash bags) to keep the store sanitary, vendible supplies (if the laundromat sells soap or bags, the owner must purchase those wholesale), and packaging for wash-and-fold orders (plastic bags, paper wrap). If offering dry-clean drop-off, the owner pays the wholesale cleaning fees. There are also administrative costs like accounting services, marketing/advertising, and credit card processing fees (for those that take digital payments). All these fall under miscellaneous overhead that the business must cover.
Controlling expenses is important for profitability. Successful owners watch utility usage closely (for instance, making sure dryers aren’t running longer than necessary or fixing water leaks quickly) and negotiate good lease terms. The lack of inventory cost in this business model means once the fixed costs are covered, additional revenue mostly contributes to profit. Industry benchmarks suggest that after all typical costs, a well-run laundromat can net a profit margin in the range of 20%–30% of gross revenue, though each case varies. High rent or utility rates can push margins lower, while efficient operations (and offering higher-margin services like drop-off laundry) can push them higher.
Customer Demographics and Usage Patterns
Who uses laundromats? Laundromats exist to serve people who don’t have in-home laundry facilities or who need special equipment (like extra-large machines). The customer base in the U.S. skews toward certain demographics. Renters are a core group – many rental apartments (especially in cities) lack private laundry, so tenants rely on local laundromats. It’s noted that laundromat patrons are often low- to moderate-income individuals, renters, college students, and working-class familie. The median household income of laundromat customers is around $28,000, according to one industry survey, indicating that many users are in lower income brackets or budget-conscious. Laundromat usage is also common among young adults and students living in dorms or off-campus housing without laundry machines. Additionally, certain professionals who travel or live short-term in an area might use laundromats, and homeowners may occasionally visit for oversized items (like washing a king-size comforter in a big commercial washer).
Interestingly, more than 60% of laundromat patrons are women. This may reflect that in many households, women are managing family laundry needs, or single mothers using laundromats, etc. The user base is very local – about 87% of customers live within a mile of the laundromat they use. Most people are not going to drive across town for coin laundry; they tend to patronize the closest convenient location. This hyper-local aspect means a laundromat really serves its immediate neighborhood. If an area has a high concentration of renters or a lack of in-unit laundry, the local laundromat becomes a busy hub. Many customers establish a routine, for example, doing laundry every Saturday morning, and become familiar faces. In fact, an estimated 90% of laundromat customers are repeat users, which means they come back regularly out of necessity and convenience. This loyalty is great for business, but it also means owners must maintain quality service to keep those regulars satisfied.
Laundromats are especially prevalent in urban areas and densely populated neighborhoods, where smaller living spaces and apartment buildings are common. Suburban and rural areas have fewer laundromats per capita, but you’ll still find them wherever there’s demand (e.g. a town with many older homes without laundry, or near clusters of rental units). Demographic trends have generally sustained the laundromat industry – in recent decades, the growth of renter populations in the U.S. has expanded the need for public laundry facilities. Even as newer apartment complexes might include on-site laundry rooms, many people prefer the capacity and speed of commercial laundromat machines. Overall, the typical laundromat customer values affordability and convenience – they might not have a lot of disposable income, so reasonable pricing and a dependable, nearby location are key to attracting and retaining these users
Day-to-Day Operations and Considerations
Running a laundromat on a daily basis involves a mix of hands-off automation (the machines do the work and customers serve themselves) and hands-on management behind the scenes. Operationally, there are a few areas of focus for a laundromat owner or manager.
Janitorial/Cleanliness: Every day, the facility needs to be kept clean and orderly. This means wiping down machines, cleaning out dryer lint traps (to prevent fire hazards and maintain efficiency), mopping floors, cleaning the restrooms, and emptying trash. A clean laundromat not only appeals to customers but also keeps the environment sanitary – remember, people are cleaning clothes, so they expect a hygienic space. If the store is unattended, the owner or a cleaner typically comes in at least once a day (often early morning or late night when closed) to do these tasks. Attended laundromats will have the staff handle cleaning throughout the day. “No one wants to do laundry in a dirty facility” is a common refrain in this business, so cleanliness is a top priority.
Maintenance of Machines: On a day-to-day basis, machines need to stay in working order. If a washer leaks or a dryer won’t heat, it must be taken out of service and fixed as soon as possible. Owners either do minor repairs themselves or call service technicians for more complex fixes. Regular maintenance like lubricating bearings or checking hoses is scheduled during off-hours to minimize downtime. It’s crucial to keep the majority of machines functional, especially during weekends when demand is highest – a row of “Out of Order” signs will frustrate customers and reduce income. Many owners keep a log of maintenance and have spare parts on hand (like extra coin mechanisms, belts, or door gaskets) to quickly resolve common issues. Preventive maintenance, such as routinely checking all machines, helps avoid unexpected breakdowns during busy times.
Money Collection and Accounting: In a coin-operated laundromat, the coins (and bill changer cash) need to be collected regularly. Owners might empty out coin boxes from each machine weekly or more often if the store is very busy. This can literally mean hauling buckets of quarters and then counting or machine-sorting them to prepare deposits. If the laundromat uses a card system, the revenue is tracked digitally, but the owner still needs to reconcile the payments and ensure the system is functioning. Basic bookkeeping is done to track how much money each machine makes, total daily/weekly revenue, and to monitor expenses. Many owners take the coins to the bank or a coin counter and keep detailed records of income. Since laundromats are often cash businesses, diligent accounting and security are important (e.g. keeping the collected cash safe and depositing promptly).
Customer Service: Even in a self-service model, some customer service is involved. Day-to-day, this could include answering customer questions (e.g. how to use a machine, or refunding money if a machine malfunctions). If an attendant is on duty, they will assist customers who need help operating machines or making change. In an unattended model, owners often post a phone number for customers to call in case of issues, and they might stop by at peak times to check on things. Handling customer issues promptly – whether it’s refunding a jammed coin or fixing a machine that stopped mid-cycle – is part of maintaining goodwill and repeat business. For laundromats offering wash-and-fold, daily operations include processing those orders: the staff will sort, wash, dry, and neatly fold each order, usually aiming to have same-day or next-day turnaround. Good customer service in this context means being reliable (orders ready on time, clothes handled carefully) and friendly to keep those clients coming back.
Security and Safety: Each day, especially when open late or 24 hours, the operator must consider safety. This might involve checking that surveillance cameras are recording properly, that outdoor lighting is on at night, and that nothing unsafe is in the store (no spills or obstructions). If the laundromat is unattended at night, some owners or their staff will swing by late at night to ensure everything is okay (or they monitor remotely via cameras). In cities, it’s not unusual for police to include 24-hour laundromats on their patrol routes for added security. Essentially, the goal is to provide a safe environment so customers (often including single adults or mothers with children) feel comfortable doing laundry, even at odd hours.
On the business side, laundromat owners also handle tasks like ordering supplies (e.g. soap for vending, replacement parts), marketing (perhaps putting flyers in apartment complexes or maintaining a Google listing so locals can find the store), and managing finances (paying bills for the lease, utilities, etc.). However, compared to many businesses, the day-to-day operations of a traditional laundromat are relatively straightforward. There is no inventory to manage and typically no complex supply chain – the focus is on keeping the location clean, functional, and customer-friendly, and letting the self-service model do its work. Many owners enjoy that a laundromat can be somewhat passive income once the daily checklist is done, especially if it’s an unattended setup. Still, success comes from sweating the details: prompt maintenance, excellent cleanliness, fair pricing, and understanding the local customer needs. By paying attention to those operational details, laundromat operators keep their machines humming and their customers coming back with the next basket of laundry.
In summary, the laundromat industry in the U.S. runs on a simple premise – people bring in dirty clothes and pay to use washing machines and dryers, and in return they leave with clean laundry. Behind this simplicity is a well-established small business model focused on location convenience, reliable equipment, and basic services. Traditional laundromats may not be high-tech or glamorous, but they play a vital everyday role for millions of Americans. From the owners’ perspective, a laundromat can be a stable, community-centered business with steady cash flow, as long as they manage the key factors of rent, utilities, and maintenance. From the customers’ perspective, it’s a local amenity that makes urban and apartment living feasible. In essence, American laundromats operate by marrying necessity with convenience – offering a do-it-yourself laundry solution that is accessible, affordable, and available when you need it. With clear understanding of the business model and solid day-to-day operations, laundromats continue to be a thriving part of the service economy, cleaning clothes and serving communities year after year.
