For decades, laundromats have been a staple of the basic service industry. As a place where neighbors come to clean and dry their clothes, laundromats are a crucial aspect of modern life, especially when affording a washer and dryer is not feasible for many households. But with the convenience of having laundry machines in our homes, does it mean the laundromat business is dying?
The laundromat industry is thriving and is projected to continue growing in the coming years. The self-serve laundromats are not dying business; on the contrary, laundromats are recession-resistant because people still need to wash their clothes despite tight money. In addition, the business’s service side is increasing rapidly with the rise of drop-off laundry services and laundry pick-up-and-delivery services.
With the rise of technology bringing convenience to our daily lives, it is now easier to do things such as ordering food, shopping, and even laundry. If you wonder whether owning a laundromat is profitable, I wrote an article sharing the top 11 Pros and cons of owning a laundromat.
Read on to explore the laundromat industry’s current state and whether it’s still a viable business.
Are Laundromats a Dying Business?
Laundromat is definitely not a dying business. According to reports, the laundromat industry in the USA generates over 6 billion annually, proving that it is still a flourishing industry. In addition, the global coin-operated laundries market is expected to be valued at USD 30.1 billion by 2027, with an annual growth rate (CAGR) of 9.4%. The good news is that, on average, coin laundries generate cash flow between $15,000 and $300,000 yearly, according to Grand View Research.
However, the industry is facing tough competition from new technologies and at-home laundry services, which can be a factor in the decline of the laundromat business. However, even with the availability of home-based laundry machines, research shows that some people still frequent laundromats because of the convenience and affordability they offer.
Laundromats are still a significant part of the community, especially in cities where space is limited and not everyone owns their laundry machines. A significant number of people still rely on laundromats to do their laundry. Due to the relevance of laundromats, most cafe owners, hotels, and other businesses often manage them as an amenity for their clients, making it viable business.
Reasons Why Laundromat Business Recession Proof Businesses?
One of the key reasons why many believe laundromats are dying is the fact that more and more apartments and houses are being built with in-unit washers and dryers. While this is undoubtedly a factor worth considering, the reality is that a significant number of people still do not have access to in-unit laundry facilities.
According to a report by the U.S. Census Bureau, as many as 35% of American households do not have a washer and dryer at home, which is why it is safe to say that there is still a significant demand for laundromats in the United States.
Additionally, laundromats are evolving to meet the changing needs of customers. Many laundromats now offer a broad range of services, such as drop-off laundry, pick-up and delivery services, and more. This is a direct response to the changing needs of customers, especially those who are always on the go and may not have the time or inclination to do their laundry. By diversifying their services, laundromat owners are not only staying relevant but also expanding their customer base.
Plus, technological advancements have not only contributed to the decline of laundromats but also to their resurgence. Many laundromats now offer free Wi-Fi, charging ports, and other amenities that customers can utilize while waiting for their laundry.
Also, some laundromats have invested in modern machines that use less water and energy, which are environmentally friendly and save customers money in the long run. These types of technological advancements have contributed to the resurgence of laundromats and made them more appealing to the younger generations.
More importantly, laundromats often serve as community centers where people can come together and socialize while doing their laundry. This sense of community is something that is missing in in-unit laundry facilities.
Industry experts predict that the laundromat business will continue to grow due to the decline of in-house laundry space in the country’s growing population.
In addition, the industry’s business model is becoming more customer-focused as laundromats are now offering more amenities, such as Wi-Fi and television. The introduction of cashless payment systems and modern equipment such as card and mobile payments has further strengthened the laundromats’ viability in recent years.
Furthermore, most laundromat business owners have come up with new ways to expand to offer services such as dry cleaning, wash and fold, and eco-friendly laundry, giving customers an even greater incentive to patronize laundromats.
What to read next:
- How To Start a Laundromat Business: Here’s How!
- How Much Do You Need To Open a Laundromat? (with costs breakdown!)
- What Permits Do You Need to Open a Laundromat?
Although there are undoubtedly challenges facing laundromats, the industry is far from dying. The need for laundromats is still significant, and with innovations in technology and services, laundromats are evolving to meet the changing needs of customers.
The industry is evolving in terms of services and amenities to keep customers coming back, and most market experts predict that the business will remain fruitful and viable for many years to come.
If you are looking for a lucrative business opportunity, the laundromat industry just might be worth considering.