How profitable are laundromats?

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The Dojo Business Team

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We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the laundromat market.

What is the average monthly revenue for a self-service laundromat, and how does it vary based on location and size?

Self-service laundromats typically generate between $5,000 and $25,000 per month, with high-performing urban locations reaching $30,000 or more monthly.

Location plays a crucial role in determining revenue potential. Urban laundromats in densely populated areas with high concentrations of renters and apartment dwellers consistently outperform suburban locations by 30-50%. Prime locations near universities, low-income housing complexes, and busy commercial districts drive the highest customer volumes.

Size directly correlates with revenue capacity. Small operations with 20-30 machines typically generate $5,000-$15,000 monthly, while larger facilities with 40-100 machines can achieve $15,000-$30,000+ per month. The key factor is not just machine count but optimal machine mix - balancing standard washers, large-capacity units, and premium machines to serve diverse customer needs.

Geographic market conditions significantly impact earnings. Laundromats in major metropolitan areas like New York, Los Angeles, or Chicago command higher prices per load and serve more customers daily compared to rural markets. However, operating costs including rent and utilities are proportionally higher in these premium markets.

You'll find detailed market insights in our laundromat business plan, updated every quarter.

How many customers does a typical laundromat serve per day or week, and what is the average spend per customer?

A typical laundromat needs 20-30 customers daily to reach break-even, while successful operations serve 40-80+ customers per day depending on location and facility size.

Customer spending patterns vary by service type and demographic. Self-service customers typically spend $10-$15 per visit, covering 2-3 loads of laundry including washing and drying cycles. Premium locations with newer, high-efficiency machines often see higher per-visit spending of $15-$20.

Weekly customer volume fluctuates predictably, with peak periods occurring on weekends and evenings when working customers have time for laundry tasks. Successful laundromats design operating hours and staffing around these patterns, with some locations operating 24/7 to capture late-night and early-morning customers.

Customer frequency varies by demographic segment. Apartment dwellers without in-unit laundry visit 1-2 times weekly, while homeowners with broken appliances represent occasional but high-value customers. Building a loyal customer base requires consistent machine availability, clean facilities, and competitive pricing structures.

Understanding these customer patterns helps optimize machine utilization and pricing strategies for maximum profitability throughout the week.

What is the revenue breakdown between self-service machines, wash-and-fold service, vending, pickup/delivery, and other services?

How much does it cost to open a laundromat, including equipment, leasehold improvements, permits, and initial inventory?

Opening a laundromat requires an initial investment between $200,000 and $500,000, with equipment representing the largest expense category.

Equipment costs range from $40,000 to $260,000 depending on facility size and machine quality. A basic 20-machine setup with standard commercial washers and dryers costs approximately $40,000-$80,000, while a premium 100-machine facility with high-efficiency equipment can reach $200,000-$260,000. Factor in delivery, installation, and utility connections which add 15-20% to equipment costs.

Leasehold improvements typically require $20,000-$50,000 for electrical upgrades, plumbing installation, flooring, lighting, security systems, and customer amenities. Older buildings often need extensive electrical and plumbing work to support commercial laundry equipment, while newer spaces may require minimal modifications.

Permits, licenses, and professional fees usually total $5,000-$15,000, including business licensing, environmental permits, building permits, fire department approvals, and legal/accounting setup costs. Some municipalities have specific zoning requirements for laundromats that may increase permit complexity and costs.

This is one of the strategies explained in our laundromat business plan.

What are the ongoing fixed monthly costs such as rent, utilities, insurance, and maintenance, and how do they scale with size?

Fixed monthly costs for laundromats typically range from $3,000-$8,000 for small operations to $8,000-$18,000 for larger facilities, representing 40-60% of gross revenue.

Rent constitutes the largest fixed expense, ranging from $2,000-$8,000 monthly depending on location and square footage. Urban locations command premium rents but generate higher revenue per square foot. Successful operators target rent at 15-25% of gross revenue to maintain healthy profit margins.

Utilities represent 25-40% of total revenue, with monthly costs between $3,000-$6,000 for typical operations. Water and sewer costs are substantial due to high usage volumes, while natural gas for dryers and electricity for washers and facility operations create significant monthly expenses. Energy-efficient equipment can reduce utility costs by 20-30%.

Insurance costs range from $1,000-$3,000 annually, covering general liability, property protection, and equipment coverage. Maintenance expenses vary from $500-$5,000 monthly depending on equipment age and usage intensity. Preventive maintenance contracts help control costs and minimize unexpected breakdowns.

Larger facilities achieve economies of scale in rent cost per machine and can negotiate better utility rates, but absolute fixed costs increase proportionally with size and machine count.

What are the typical variable costs per wash and dry cycle, including water, gas, electricity, and detergent?

Variable costs per laundry cycle range from $0.68 to $1.53, with water representing the largest component followed by energy costs for heating and drying.

Water costs vary significantly by region, ranging from $0.12 to $0.88 per load depending on local utility rates and water conservation regulations. A standard wash cycle uses 15-25 gallons of water, while high-efficiency machines reduce consumption by 30-40% while maintaining cleaning effectiveness.

Electricity costs approximately $0.30 per load for washing machine operation, lighting, and facility systems. Natural gas for dryer operation ranges from $0.05 to $0.40 per minute of drying time, with typical cycles requiring 25-45 minutes depending on load size and fabric types.

Detergent and supplies cost $0.21-$0.25 per load when providing vended products. Many laundromats generate additional profit margins by selling detergent, fabric softener, and dryer sheets through vending machines at markup rates of 100-200% over wholesale costs.

Controlling variable costs requires regular equipment maintenance, negotiating favorable utility rates, and optimizing cycle times to reduce energy consumption while maintaining service quality standards.

What labor is required to operate a laundromat with or without drop-off service, and what are the associated wage costs per week or month?

Self-service laundromats can operate with minimal labor, while full-service operations with wash-and-fold require $2,000-$8,000 monthly in staffing costs.

Unattended self-service models require only periodic maintenance visits, security checks, and cleaning services totaling 5-10 hours weekly. Many successful operators handle these tasks personally or hire part-time staff at $15-$20 per hour, resulting in monthly labor costs under $1,000.

Wash-and-fold services require dedicated staffing during operating hours. A typical operation needs 1-2 full-time employees earning $15-$18 per hour, plus supervisory coverage for peak periods. Monthly payroll costs range from $2,000-$5,000 for basic coverage, increasing to $6,000-$8,000 for extended hours and premium service levels.

Pickup and delivery services add routing and customer service requirements, typically requiring additional part-time drivers earning $16-$22 per hour including vehicle expenses. Many operators use contracted delivery services to avoid vehicle ownership and insurance complications.

We cover this exact topic in the laundromat business plan.

What is the average gross profit margin by service type, and how do they compare?

What are the average net profit margins per month or year after all expenses, and what is a reasonable annual net income expectation for different size operations?

Laundromat net profit margins typically range from 20-35% industry-wide, with well-managed operations achieving margins up to 50% in optimal markets.

Small laundromats with 20-30 machines generate annual net incomes between $30,000-$100,000, assuming gross revenues of $60,000-$180,000 and effective cost management. These operations often provide supplemental income for owners who maintain other employment or business interests.

Medium-sized facilities with 40-60 machines typically produce $75,000-$200,000 annual net income from gross revenues of $200,000-$400,000. These operations can support full-time owner management and provide living wages for small business owners in most markets.

Large laundromats with 60-100+ machines achieve annual net incomes of $150,000-$300,000+ from gross revenues exceeding $400,000. Top-performing urban locations with diversified service offerings can exceed $500,000 annual gross revenue and generate $200,000+ net income for experienced operators.

Net profit margins improve with scale due to operational efficiencies, better utility rates, and the ability to spread fixed costs across higher revenue volumes.

What factors most influence profitability, and how can they be optimized?

Location quality, operational efficiency, and service diversification represent the three primary drivers of laundromat profitability that successful operators must master.

Location selection impacts revenue potential more than any other factor. Urban areas with high concentrations of renters, students, and households without in-unit laundry generate 30-50% higher revenue than suburban locations. Proximity to apartment complexes, universities, and public transportation drives consistent customer traffic throughout the week.

Machine efficiency directly affects both revenue generation and operating costs. High-efficiency washers and dryers reduce water and energy consumption by 20-30% while providing faster cycle times that increase daily capacity. Regular maintenance prevents costly breakdowns and ensures consistent customer satisfaction.

Service mix optimization allows operators to capture different customer segments and price points. Adding wash-and-fold services increases average customer spending from $10-$15 to $20-$36 per visit. Pickup and delivery services boost average order values to $68 while improving customer retention rates.

It's a key part of what we outline in the laundromat business plan.

What are some strategies to increase revenue and reduce costs, including upselling services, pricing tactics, and energy-efficient equipment?

Revenue optimization combines strategic pricing, service expansion, and operational improvements to maximize profitability across all customer touchpoints.

Dynamic pricing during peak hours can increase revenue by 15-25% without losing customers. Implementing premium pricing for evening and weekend hours when demand is highest, while offering discounts during slow periods, optimizes machine utilization throughout the week.

Upselling strategies include bundled services like wash-fold-delivery packages, premium detergents for delicate fabrics, and express services for time-sensitive customers. Loyalty programs encourage repeat visits and higher spending through points-based rewards and volume discounts.

Energy-efficient equipment reduces operating costs by 20-30% through lower water consumption, faster heating cycles, and reduced drying times. Smart payment systems and mobile apps improve customer convenience while reducing cash handling costs and theft risks.

Cost reduction focuses on utility management, preventive maintenance, and operational automation. Negotiating group rates for multiple locations, installing LED lighting, and using programmable thermostats can significantly reduce monthly expenses while maintaining service quality.

How does profitability scale with multiple locations or a larger store footprint, and what are the diminishing or compounding returns at scale?

Multi-location operations achieve compounding returns through centralized management, bulk purchasing power, and operational expertise transfer, but require sophisticated systems and experienced management.

Economies of scale become significant with 3-5 locations, allowing operators to negotiate better equipment prices, utility rates, and supply costs. Centralized laundry processing for wash-and-fold services across multiple locations improves efficiency and reduces per-unit labor costs.

Larger store footprints (2,000-5,000 square feet) optimize revenue per square foot through diverse machine sizes, customer amenities, and ancillary services. However, rent costs increase proportionally, requiring careful analysis of customer density and spending patterns to justify expansion.

Management complexity increases exponentially with scale, requiring robust systems for inventory tracking, maintenance scheduling, and financial controls. Successful multi-location operators invest heavily in technology platforms and manager training to maintain consistent service quality and profitability standards.

Market saturation becomes a limiting factor as additional locations compete for the same customer base. Careful market analysis and strategic location selection prevent cannibalization of existing operations while maximizing overall network profitability.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

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2. FabKlean - How Much Do Laundromats Make a Month
3. The Laundry Boss - Laundromat Industry Data Statistics
4. TryCents - Laundromat Cost Analysis
5. Dojo Business - Laundromat Daily Customers
6. Gitnux - Average Laundromat Cost
7. Press Cleaners - Laundromat Statistics 2025
8. Upmetrics - Laundromat Startup Costs
9. Real Clean Group - Cost to Open a Laundromat
10. Nav - How Much Does It Cost to Open a Laundromat