Laundromats have been a staple business for years. During downturns in the economy and worldwide pandemics, laundromats have proven themselves to not only be essential businesses but are an important part of the health and sanitation of modern life. But, times are changing faster than they ever have before. This begs the question, will laundromats be around for the long-term or are they a dying business?
The laundromat industry is thriving today and is projected to continue to grow in the coming years. Self-serve laundromats are far from dying. However, the service side of the business is growing at an increasingly rapid pace through the addition of drop-off laundry services and laundry pick-up-and-delivery services.
I made a video of 10 reasons laundromats are the best small business to own. You can watch that video below and it may give you some insight into why the laundromat industry is continuing to grow in popularity with investors. But we’ll focus on why laundromats will continue to grow and where the biggest opportunities lie for laundromat owners.
Grand View Research did a study that shows that the laundromat market is $14.6 billion annually. That number is projected to grow at 9.4% per year until 2027. That’s significant growth for an established industry that is almost entirely owned and operated by mom & pop operators. And the projections of growth are in both residential and commercial laundry.
This projected growth can be attributed to a variety of factors, including population growth, change in consumer habits, new service offerings by laundromats reaching new demographics, and more.
Although self-service laundromats are projected to continue to grow, there are opportunities to utilize those same assets, the commercial washing machines and dryers, to incorporate a service side of your laundromat business. The opportunities to save your customers time and provide them a huge convenience can mean a great business opportunity for the laundry business owner willing to build out these services.
While laundromat owners will be utilizing the same washing machines and dryers as their self-serve customers, adding a laundry drop-off service or laundry pick-up-and-delivery service requires extra work, more systems, and more employees to manage. It can quickly get overwhelming to owners. However, with a growing industry comes new technologies to support owners, streamline tasks, and manage the business more efficiently.
3. Tips to Grow Your Laundromat
With no end to the laundromat business in sight, here are some tips to grow your own laundromat so you can get your piece of the pie.
First, provide amazing value for your laundromat customers. Attend to the basics of laundromat success diligently. This includes keeping your laundromat immaculately clean, ensure each machine is working and reliable, and greet customers in a friendly manner and train your staff to do the same.
Second, price your machines appropriately. One of the quickest ways to increase your revenue is to raise the prices of underpriced machines. Raising prices can be difficult or uncomfortable for some owners. But without raising prices to appropriate levels, owners can’t afford to provide exceptional service and can’t apply the next tip to grow your laundromat.
Third, reinvest in your business. The best laundromat owners continually reinvest in their businesses, in both big ways and small ways. That may mean replacing machines or painting a wall, planting some flowers or redoing flooring, training employees or repaving a parking lot. Always be looking for ways to reinvest into your business to provide more value for your customers and be able to charge appropriate prices.
Fourth, up your level of laundromat customer service by utilizing a business management system.
Learn more about how to start your own drop-off laundry service.
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