The coin laundry industry had began approximately 60 years ago and was primarily a ‘mom and pop’ business. However, in the past few years there are more people taking advantage of this all cash business, especially since it can be managed on a part-time basis. Additionally, they most likely offer a better ROI than the stock market or other investments. Coin Laundry Association reports that there are about 35,000 self-service laundromats in the United States today.
Coin laundries generally occupy retail space in strip centers on long-term leases (10-25 years) and generate steady cash flow over the life of the lease. Coin laundries are unique small businesses in that they have no inventory or receivables. A minority of coin laundries employ attendants to oversee the day-to-day operations and maintain the laundry.
The market value of coin laundries range from $50k to over $1 million and can generate cash flow between $15k and $20ok per year. Figures are dependent on the size of the store and the number of washers and dryers in the equipment mix. Business hours typically run from 6 am-10 pm seven days a week, with some open 24 hours a day.
The primary user of coin laundries are renters. Laundromats are typically found in densely-populated, renter-occupied areas because apartment laundry facilities are usually inadequate for all tenants to share. Customers will resort to using laundromats where they have a larger variety of washers and dryers at their disposal.
From an investment perspective, you can typically see a 15% to 25% cash-on-cash return on your initial investment, per year. It’s a perfect business for absentee management, retirees or someone with a full-time job looking for positive cash flow.