Key Laundromat Industry Statistics Investors Should Know

Investing in your own laundromat business is a big decision. Like any potential business investor, you’ve probably started researching the ins and outs of the industry, but it can be hard to know which investment opportunities are best. Let Martin Ray Laundry Systems save you the headache! We offer consulting services in Colorado, New Mexico, Wyoming, west Texas, and western Nebraska, helping investors like you evaluate a laundromat's potential return on investment and other key stats to understand your risk—and your potential reward.

 

Our team has seen this demanding market grow and understands what a resilient investment an essential business like a laundromat can be. But you don't need to take our word fo rit. Check out vital laundromat industry statistics below to see for yourself.

 

Our experience in this field doesn’t end at consulting. We’re a trusted partner and supplier for commercial equipment, parts, repair, training, and other services. If you need help evaluating a business decision or improving an established laundromat, we’re here to help.

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As you consider investing in a laundry business, there are several industry statistics you should know. Laundromat investors should know key industry statistics on market size, profitability, success rates, ROI, and demographics to make informed decisions. Here are the U.S. laundromat industry statistics you should know before entering ownership:

U.S. Laundry Industry Overview

As an investor, you'll first want to understand the size and stability of the launtomat industry before committing capital. here are the laundromat industry statistics as a whole:

  • Number of Laundromats: There are currently about 18,375 coin laundries in the U.S., a number that has declined 0.5% from 2020 to 2025.
  • Market Size: Laundromats generate about $6.8 billion in combined nationwide gross annual revenue, an increrase from the previous estimate of $5 billion.

Key Insights for Investors: The total number of laundromats declines by 0.5% per year from 2020 to 2025, but the market size grew, showing a consisten demand for these businesses and a steady cash flow.

Laundromat Revenue and Profitability Statistics

Revenue, margins, and cash flow directly impact a laundromat’s ROI and long-term financial success. Though profitability can vary depending on a business’s location, size, services, and pricing strategies, these statistics tell a promising story:

  • Revenue per Laundromat: Laundromats commonly average a yearly revenue of about $150,000, but individual earnings can range from $30,000 to $1 million.
  • Profit Margin: The average profit margin for laundromats in around 20% to 35%.
  • Cash Flow: Coin laundries generate cash flow between $15,000 and $300,000 per year.

Key Insights for Investors: Laundromats can be extremely profitable, yielding margins of up to 35% or more, but the earning potential is significantly dependent on operational factors. This means the business plan, design and equipment layout, and management are crucial to financial success.

Laundromat Success Rates and Returns on Investment

Evaluating the success and failure rates for laundromats and returns can help you understand the risk versus reward. Two statistics that demonstrate laundromats’ low risk are:

  • Survival Rate: Approximately 95% of laundromats succeed over the first five years of operation (higher than average for other small businesses).
  • Return on Investment: Laundromats average between 20% and 35% ROI.

Key Insights for Investors Laundromats demonstrate stability and strong returns, making them a good potential investment with promising break-even and payback periods. Investors should consider reasons for laundromat failure rates, such as poor location and inadequate machine selection or maintenance, and other profitability factors, when making their decisions.

Statistics on 'Average' Laundromat Businesses

Most laundromat statistics cite ‘average’ laundry businesses, but as an investor, it’s crucial to understand what these benchmarks are so you have a realistic baseline for decision-making. Here are some statistics that describe the average laundromat:

  • Facility Size: The average size of a laundromat facility varies depending on the market and location, but generally, businesses range from 1,000 to 5,000 square feet.
  • 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.
  • Chains/Franchises: While no major chains exist currently, there are a few sizeable laundromat franchises in the U.S.
  • Start-up Costs: The start-up costs range between $100,000 and $300,000.
  • Commercial Equipment: Most facilities have between 40 and 100 washers and dryers.

Key Insights for Investors: Coin-operated washers and dryers can require large capital up front, but quality machines and technology can be excellent for ROI. Another advantage of investing in a laundromat is that it’s generally lean to operate, which not only balances high startup costs, but it also often results in a positive net operating income.

Customers Demographics

  • Typical User: Low income individuals, renters, college students and working-class families are the primary users of coin laundries.
  • Gender: Laundromat users are predominantly female.
  • Proximity: 87% of customers live within a mile of the facility.
  • Household Income: Laundromat customers’ median household income is $28,000.
  • Repeat Customers: 90% of patrons become repeat customers.

Key Insights for InvestorsUnderstanding our demographic and selecting a location near that customer base is one way to protect your investment and offer long-term security.

Future Outlook for Laundromats

Overall, the industry remains quite stable, with laundromats experiencing consistent revenue growth and profitability due to the essential nature of their services. Even with economic shifts, trends toward urbanization and strong rental markets create long-term demand. 

With smart equipment selection and technology upgrades, like card payment systems, your business is set up to attract and retain consumers. If you’re interested in taking the next step to turn your laundromat dreams into a reality, contact Martin Ray’s knowledgeable team of experts today!

Please note that vended laundry statistics and customer characteristics can vary enormously depending on location, size, and services offered. For example, laundromats that offer card-operated machines, loyalty programs, and additional services like wash & fold, dry cleaning, and pickup/delivery can see increased revenues but also require additional employees and overhead costs. 


*Statistics were based on research from laundry industry experts and other authoritative sources such as IBISWorld, WorldMetrics, and the Coin Laundry Association