Laundry Industry Profile

Basic Facts

Coin laundries are an all cash, no inventory business that offer investors many advantages, including high ROI, liquidity, tax benefits, and fast growing equity. Here is some basic information about self-service laundries:

• The cost of buying an existing vended-laundry ranges from less than $100,000 to over $1 million, depending on size, age, and net income.
• Laundries typically occupy between 1,500 and 4,000 square feet of retail space, however, some go up to 6,000 square feet. depending on market size, the density of the trade area, and the quality and number of competitors.
• Most laundries occupy retail space that is rented on a long-term lease (10-25 years). Negotiating a satisfactory lease is the single most important part of developing a new laundry, or purchasing an existing one. PWS is an expert in this area and handles lease negotiations for all new stores we develop.

Laundries are a Growth Industry

There are over 35,000 coin- and card-operated laundries in the United States, generating more than $4.0 billion in annual revenue. And these numbers are growing!

Laundries perform especially well in densely populated, lower income areas. The primary customer base is the estimated 100 million people who live in rental housing – the fastest-growing housing segment in the nation.

Coin laundries also appeal to a broader array of customers because of their convenience, time and cost savings, heavy-duty equipment not found in the home, and fluff and fold services for busy workers on the run.

Business Remains Brisk During Recessions

In a slow-growth/no-growth economy, the self-service laundry market expands to meet the needs of people who are unable to repair, replace or purchase new washers and dryers. Declines in home ownership also increase demand, as people move to apartment housing with inadequate or non-existent laundry facilities. Throughout economic downturns, the outlook for the coin laundry business remains positive and vibrant.

Industry Trends

Business is constantly changing, and the laundry business is no exception. Here are several recent trends:

• New Services

  Most laundries were historically unattended. Today they’re offering new services, such as snack bars and bottled water, and employing full-time, on-site personnel.

• Extended Hours

  Most laundries are now open from 6:00 AM to 10:00 PM. Some even operate 24-hours a day to meet ever-increasing demand.

• New Payment Methods

  The term ‘coin laundry’ has been changed to ‘vended laundry’ because, in addition to coin-vended equipment, machines can now be activated by debit-cards and smart-cards.