The Laundromat Industry

Keeping America Clean
No matter what the economy is like, laundromat owners will always have customers. People will always need to wash their clothes. And a growing number of them don't have a washer and dryer. By providing clean, convenient equipment, laundromats can generate between $15,000 - $200,000 per year.

Not all laundromats make big bucks. The better the location, the higher the laundromat owner's income. The best place for a laundromat is in an area where most of the population rents, and doesn't have access to a laundromat in their apartment building. Laundromats with extra services and conveniences are generally more profitable—such as accepting credit cards (bye-bye coin changers), providing internet access, a kid play area, dry-cleaning drop-off, and other services.

Laundromats are considered "passive income generators," since they require minimal maintenance, few (if any) employees, and a minimal amount of inventory to keep track of (usually just vending machine items, such as snacks or detergent). In fact, most laundromat owners successfully own and manage 3 or more laundromats. Laundromats can be open 15-24 hours a day, without much change in overhead cost.

The Laundromat Customer
Most laundromat customers rent their home or apartment, and either can't afford a washer and dryer or can't fit them into their apartment. The 2005 US census report shows that the rental segment of the population is growing rapidly. This is because more people live and work in densely-populated cities, and due to rising housing costs. Over 30% of households in the US rent—that means more than 36 million households visit a local Laundromat every week.

The First Laundromats
The first laundromat opened over 70 years ago, under the name "washateria." These early wash shops required several full-time attendants, no automatic dryers, and some manual labor.

A few years later, automatic washing machines and electric dryers were invented, decreasing the need for employees and manpower (and making that unpleasant walk home with wet laundry a thing of the past). By the 1940's, the name "washateria" was switched to "laundromat." Soon, 24-hour self-service laundromats were popping up around the country. Since that time, the laundromat has become a steady source of income for business owners.