Laundromat Investment Opportunities

Opening a Laundromat in the Coin Laundry Industry

The nation’s laundromats are projected to generate between $5 billion and $6.8 billion in revenue in 2025. For a small business founded on nickels, dimes, and quarters, this is an impressive performance. Are you interested in opening a laundromat? Invest wisely with Coin-O-Matic in Alsip, IL at your side.

Coin-O-Matic Service Areas

We work with business owners in and around these service areas: 

• Chicago, Aurora, Rockford, and Joliet in Illinois
• Indianapolis, Fort Wayne, Gary, and South Bend in Indiana
• Detroit, Lansing, Grand Rapids, and Ann Arbor in Michigan
• Milwaukee, Madison, Kenosha, and Racine in Wisconsin

Laundromats Are a Necessary Service for Both Homeowners and Renters

Coin laundry currently serves over 40 million residences, and appeals particularly to the vast majority of middle and low-income households whose on-premises laundry facilities may be limited. Laundromats have also followed Americans into the suburbs to offer more and larger washing machines and tumble dryers that are in direct competition with the single-home washer and dryer. It is a cash or card business with no accounts receivable and very few accounts payable. Thanks to its self-service business structure, coin laundries are often minimally labor intensive.

Coin Laundries Offer High Margins & Low Overhead Costs

In recent years, many savvy individuals with capital to invest have turned to laundromat ownership as a sound business decision. At Coin-O-Matic, we have worked with engineers, accountants, pilots, and many others to help them open laundromats in and around Chicago and throughout northern Illinois and northwest Indiana. Laundromats often offer high margins and low overhead costs compared to other investment opportunities.

So what does it take to get started in this lucrative field? While the upfront investment can be quite costly, the payoff is certainly swift, with most laundry owners beginning to see returns in 1-2 years.

To open a laundromat, potential investors should have at least $600,000 in liquid investment. Average laundromats typically occupy a space between 2,000 and 5,000 sq. ft., and investors  should assume that it takes about $300 per sq. ft. to start up their laundry business. If not outright purchasing your space and looking at financing options, it is wise to have 25%-40% of the purchase price in down payment and at least 3 months of operating expenses in hand at the time of purchase.

All that said, what drives those with the proper investment criteria to opt into the laundromat business? Coin laundry investors look forward to the challenge of operating a small business without tying themselves to it eight hours a day or forsaking their career occupation. However, in the process of opening more laundry locations, some owners decide to abandon their original line of work altogether to manage their laundromats as a full-time business venture in its own right.

How to Be Successful in the Coin Laundry Industry

The successful future of the independent coin laundry will depend on its owner's willingness and ability to develop good management and marketing practices, adjust to changing economic and environmental conditions, and invest back in their business. Energy-efficient commercial washer and dryer solutions are key to effective store management overall.

Need additional information about Laundromats?  Contact Coin-O-Matic's Laundromat Investment Specialists, today!