Statistics in 2025: A Fresh Look for Investors

Laundromat Statistics in 2025: A Deep Dive for Investors

Investing in a laundromat has long been considered a pathway to a stable and potentially lucrative business. As we look towards 2025, the industry continues to demonstrate resilience and a capacity for evolution, making it an attractive option for entrepreneurs. Unlike many small businesses, laundromats provide an essential service, ensuring consistent demand across various economic climates.[1] This comprehensive guide will delve into the key U.S. laundromat industry statistics for 2025, offering a detailed analysis for potential investors.

One of the most telling statistics about laundromats is that they have a 94.8-95% business success rate over a period of a 5 year period after starting their businesses with 90% of customers repeating business. This is extremely unique in the business world. 

The global laundry market, including coin-operated laundries, is on a significant upward trajectory. A January 2024 report by Research and Markets projected the global coin-operated laundries market to grow from a valuation of $19.77 billion in 2023 to $39.34 billion by 2030, with a compound annual growth rate (CAGR) of 10.32%.[2] While this encompasses global figures, it underscores the robust health and growth potential of the broader industry of which U.S. laundromats are a significant part.

Unveiling the U.S. Laundromat Industry Landscape in 2025

Understanding the macroeconomic picture of the U.S. laundromat sector is the first step for any prospective investor.

Market Size and Revenue:
The U.S. laundromat industry is a substantial market. In 2024, industry revenue was estimated at $6.8 billion.[3] Looking ahead to 2025, the market size is projected to remain around $6.8 billion.[4][5] Some reports indicate a slight decrease of -0.2% in market size for 2025.[5] The industry has seen an overall compound annual growth rate (CAGR) of 2.3% over the past five years leading up to 2025.[4] Another source indicates the broader U.S. dry-cleaning and laundry services market was valued at $9.80 billion in 2024 and is expected to reach $10.36 billion in 2025, with a projected CAGR of 6.6% from 2025 to 2030.[6] This broader category includes more than just self-service laundromats but points to overall positive momentum in the laundry services sector. Cents’ “Into the Fold 2025” report highlights the larger laundry industry at $60 billion, underscoring its significant impact.[7]

Number of Laundromats:
Estimates on the number of laundromats vary, highlighting different data scopes and collection times. One source from early 2025 states there are about 29,500 laundromats in the United States.[2] IBISWorld, in a report with data leading into 2025, indicated there are 18,374 laundromat businesses in the U.S.[4][8], noting a decline of -1.1% from 2024 and an average annual decline of -0.5% between 2020 and 2025.[8] Another older source, often cited, puts the number closer to 35,000.[9][10] The “Into the Fold 2025” report by Cents bases its findings on data from thousands of Cents-powered locations, representing 1 in 12 laundromats in the U.S. market, which implies a total market of a similar scale.[7] This variation suggests a dynamic market and differing definitions of what constitutes a “laundromat business.”

Revenue per Laundromat and Profitability:
Nationwide, laundromats generate approximately $5 billion in annual revenue according to one source[2], while another estimates the total market at $6.8 billion in 2024/2025.[3][4] Annual gross income for individual laundromats can range widely, from $30,000 to $1 million, depending on factors like location, size, and services offered.[11] Some reports suggest smaller laundromats can make 1000 per week gross, while larger facilities can earn up to $50,000 per week gross.[12]

Profit margins for laundromats are generally considered healthy, typically ranging from 20% to 35%.[2][11] This high ROI makes them an attractive proposition compared to many other small businesses.[2][11] Indeed, some owners report cash-on-cash ROI between 20% and 100%.[12]

Cash Flow:
Consistent with strong ROI, laundromats are known for generating steady cash flow. Estimates suggest this can range from $15,000 to $300,000 per year per laundromat.[1] More broadly, a well-run laundromat could see profits up to $350,000 annually.[11]

Success and Survival Rate:
The laundromat industry boasts a high success rate, often cited around 94.8% to 95% over the first five years of operation.[1][11] This resilience is attributed to the essential nature of laundry services.[1]

Anatomy of the Average Laundromat in 2025

While “average” can be a misleading term in such a diverse industry, certain commonalities and emerging trends define the modern laundromat.

Facility Size:
Laundromats typically range from 1,000 to 5,000 square feet, heavily dependent on the specific market and location. Urban areas with high population density might support larger facilities, while suburban or rural locations might feature smaller footprints.

Operating Hours:
Many laundromats operate between 6 a.m. and 11 p.m. However, the 24-hour model remains popular in certain areas, catering to customers with varied schedules. The trend towards automation and remote management systems is making extended or 24/7 operations more feasible.[2]

Equipment and Initial Investment:
A significant portion of startup costs goes towards purchasing and installing commercial washers and dryers. Most facilities house between 40 and 100 machines.[11] Prices for these machines can range from $1,500 to $5,000 per unit for new equipment, potentially leading to an equipment outlay of $60,000 to $500,000.[11] Some estimates place the machine costs between $100,000 and $300,000.[13] High-capacity, energy-efficient models can cost between $8,000 and $20,000 per unit.[14]

Employees:
The number of employees varies based on the business model. Many laundromats operate with a lean team, ranging from 0 to 8 employees. Unattended, self-service models require minimal staffing, focusing on cleaning and maintenance. However, attended laundromats offering services like wash-dry-fold, dry cleaning, and customer assistance will naturally have higher labor costs. Labor costs, if applicable, can account for 25-35% of operating expenses.[15]

Chains/Franchises:
While the laundromat industry is predominantly composed of independent, “mom & pop” operators[2], franchise options do exist. Buying a laundromat franchise can offer a proven business model and brand recognition but involves upfront franchise fees ranging from $20,000 to $50,000, in addition to standard startup costs.[11] Some franchise models may also require $100,000 to $300,000 in liquid cash.[10]

Decoding Startup Costs in 2025

Launching a laundromat requires a significant initial investment, with figures generally ranging from $200,000 to $500,000.[2][10][11][14] In certain prime locations or for larger facilities, this can even reach up to $1.2 million.[11] Another source places the typical range between $114,000 and $450,000.[16]

A detailed breakdown of these costs includes:

• Lease or Property Purchase: Securing a location in urban areas can range from $200,000 to $500,000, potentially exceeding $1 million in prime spots if purchasing.[11] Leasing a space might cost between $1,500 to $5,000 per month.[13] Lease deposits can add $10,000 to $30,000.[16] Buying an existing laundromat might have a higher upfront cost but could offset renovation and some equipment expenses.[11]

• Equipment: As mentioned, this is a major expense, potentially $60,000 to $500,000 for new units.[11] Some sources estimate $40,000 to $260,000.[16]

• Renovations and Leasehold Improvements: Preparing the space with necessary plumbing, electrical work, and interior design typically costs between $20,000 and $50,000.[13][14]

• Utilities Setup: Utility connections, especially for water and drainage, are crucial and can cost between $50,000 and $150,000 as part of the initial setup.[13]

• Permits and Licenses: These typically range from $500 to $3,000, depending on local regulations.[13][14]

• Initial Inventory and Supplies: Detergents, softeners, and vending machine stock can cost $2,000 to $10,000.[13][14]

• Technology and POS Systems: Modern payment systems and management software can range from $5,000 to $20,000.[16]

• Marketing and Signage: Initial advertising and signage can range from $2,000 to $5,000.[13]

Understanding Operating Expenses

Ongoing operational costs are crucial for profitability. Key monthly expenses include:

• Utilities (Water, Gas, Electricity): This is a significant variable cost, often accounting for 15% to 40% of total operating expenses, or 25% to 40% of revenue if equipment is older.[15][17] With energy-efficient machines, utilities can average 18-25% of monthly gross expenses.[17] Estimates suggest average monthly utility costs can range from $1,500 to $2,500 or more, depending on usage and local rates.[15] Some breakdowns show monthly water at $300 (12%), electricity at $800 (32%), and gas at $150 (6%) of utility costs, though these are examples and will vary widely.[15]

• Rent/Mortgage: This is typically the highest fixed monthly expense.[18] Rent can consume about 9% of annual revenue.[19]

• Maintenance and Repairs: Allocating approximately 15-20% of total operating costs for maintenance is common.[15] Service calls can cost between $120 and $500.[11]

• Insurance: Vital for protection, premiums can range from $500 to $1,500 annually or more.[15]

• Employee Salaries/Wages (if applicable): Can be 25-35% of operating expenses.[15]

• Supplies: Laundry supplies (detergents, etc.) can range from $150 to $300 monthly.[15] Material costs of goods sold might be around 8% of revenue.[19]

• Marketing: Ongoing marketing efforts can be 5-10% of the budget.[15]
  Overall monthly operating costs can range from $5,000 to $17,800.[20]

The Laundromat Customer in 2025: Evolving Demographics and Preferences

The traditional laundromat customer base has been comprised of renters, individuals in lower-income brackets, college students, and working-class families. The median household income for laundromat customers has been around $28,000. Women have historically made up more than 60% of laundromat patrons. Proximity is key, with a large majority of customers (often cited as 87%) living within a mile of the facility. Customer loyalty is also a strong feature, with approximately 90% of patrons becoming repeat customers.

Looking towards 2025, while these core demographics remain significant, the customer profile is broadening. Increased demand for on-demand laundry services, including pickup and delivery, is being driven by time-constrained individuals, including a growing number of working women and busy professionals.[6] Laundromats that offer convenience, modern payment options, and a clean, comfortable environment are better positioned to attract and retain this evolving clientele.[21][22]

The Unstoppable Rise of Technology and Sustainability in 2025

Technology is no longer a luxury but a necessity for competitive laundromats in 2025.[2][22][23]

• Payment Systems: There’s a significant shift from solely coin-operated machines to include mobile payments, credit/debit card readers, and app-based platforms.[2][21][24] Digital payments are not just a convenience; they are driving higher order values.[7]

• Smart Laundromats: IoT-enabled machines allow for remote monitoring, real-time data on machine status and usage, and even predictive maintenance.[2][22][23] AI-powered systems can optimize wash cycles and energy usage.[22][23]

• Management Software: Comprehensive laundromat management platforms streamline operations, from payment processing to customer relationship management (CRM) and managing full-service options like pickup and delivery.[2][24]

• Customer Convenience: Mobile apps for checking machine availability, receiving cycle notifications, and making payments enhance the user experience.[22][23]

Sustainability is another crucial trend, driven by both cost savings and increasing consumer environmental awareness.[2][22][23]

• Energy-Efficient Equipment: Investing in ENERGY STAR®-rated washers and dryers significantly reduces water and electricity consumption, directly impacting utility costs, which can be 30-40% of revenue with outdated equipment.[25][26][27] High G-force extractors in washers reduce drying time, saving energy.[25][28]

• Water Conservation: Low-flow faucets and water recycling systems are becoming more common.[2][28]

• Eco-Friendly Products: Offering biodegradable detergents and reusable laundry bags caters to environmentally conscious consumers.[2][24]

Value-Added Services: The Key to Boosting Revenue in 2025

To maximize profitability, laundromats are increasingly diversifying their offerings beyond basic self-service.[2][29]

• Wash-Dry-Fold (WDF) Services: This full-service option is a major growth area, appealing to customers seeking convenience.[2][29]

• Pickup and Delivery: Expanding on WDF, pickup and delivery services cater to a premium market segment and can significantly boost revenue.[2][6][29] “Into the Fold 2025” found that pickup and delivery orders average $79.81, substantially higher than drop-off orders at $44.19, indicating a consumer willingness to pay a premium for maximum convenience.[7]

• Specialized Cleaning Services: Some laundromats are expanding into niche markets like hypoallergenic laundering, pet bedding cleaning, or cleaning sports gear.[2]

• Ancillary Revenue Streams: Vending machines (snacks, drinks, laundry supplies), ATMs, and even entertainment options like Wi-Fi and comfortable waiting areas can enhance customer experience and provide additional income.[12][22]

The Future Outlook: Trends for 2025 and Beyond

The laundromat industry in 2025 is characterized by several key trends:

• Continued Technological Integration: Expect more smart machines, sophisticated management software, and a greater reliance on data analytics to understand customer behavior and optimize operations.[2][4][29]

• Emphasis on Customer Experience: Cleanliness, modern amenities, multiple payment options, and excellent customer service will be key differentiators.[21][22]

• Growth in Full-Service Options: Wash-dry-fold and pickup/delivery services will continue their upward trajectory as consumers prioritize convenience.[2][7][29]

• Sustainability as a Standard: Eco-friendly practices and energy-efficient equipment will become increasingly important for both cost control and attracting environmentally aware customers.[2][22][23][24]

• Market Consolidation and Professionalization: While still dominated by small operators, there’s a trend towards more multi-store ownership and more business-savvy investors entering the market.[29]

Challenges remain, including rising utility costs and potential equipment cost increases.[4][15] Competition from at-home laundry solutions in new buildings, particularly in some urban and rural areas, also needs to be considered.[4] However, the fundamental need for laundry services, coupled with industry innovation, positions laundromats for continued stability and growth.[1][2]

Conclusion: A Clean Investment for 2025?

The laundromat industry in 2025 presents a compelling investment case, marked by strong success rates, healthy profit margins, and steady demand.[1][2][11] However, success is not guaranteed and requires careful planning, strategic investment in location and equipment, adoption of modern technologies, and a keen focus on customer needs.

By understanding the statistics and trends outlined, potential investors can make informed decisions. The laundromat of 2025 is evolving – it’s becoming smarter, greener, more customer-centric, and increasingly service-oriented.[21][22][24] For entrepreneurs ready to embrace these changes, the laundromat industry continues to offer a path to building a resilient and profitable business. The journey from coin-operated staple to a technologically advanced service hub is well underway, promising a dynamic future for the sector.