WHY INVEST IN A LAUNDROMAT?

Published : Friday, June 13, 2025

Owning a small business is a highly appealing prospect, offering control over your future, the satisfaction of reaping the rewards of your hard work, and the flexibility to design your ideal work-life balance. It also opens up opportunities to build something lasting, a business that could be passed down through generations.

However, choosing the right small business idea is crucial to achieving long-term success. An often overlooked, but very profitable business idea, is opening a laundromat. The laundry industry offers distinct advantages, making it an excellent choice for new entrepreneurs.

Below are some key reasons why laundromat ownership can be a smart investment.

Why Invest in a Laundromat?

1. Recession-Resistant Business Model
   Laundromats tend to thrive even during economic downturns. In fact, in challenging economic times, usage may increase as customers delay purchasing home laundry equipment.
2. Fast Return on Investment (ROI)
   Laundromat owners often see a return on investment of 30-40% within the first year.
3. Low Barriers to Entry
   Laundromats are relatively easy to start compared to other businesses. Minimal certification, education, or regulatory requirements are needed. With a solid business plan, and a good location and the right equipment, you can have your laundromat up and running within weeks.
4. Manageable as a “Side Hustle”
   Thanks to advancements in technology, self-service laundromats can be managed remotely. Entrepreneurs can monitor equipment, manage pricing, and track usage, all from a laptop, making it feasible to operate as a side business.

Choosing the Right Laundromat Type:

Once you decide to enter the laundromat business, you need to determine the right model for yourself. Do you want self-service or fully serviced. Each type comes with its own set of benefits, and selecting the best one depends on your goals. Decide what type of laundromat you want to open and then go from there.

The next step is to find the right location. To do this you need to find a gap where there is a definite demand but either no supply or inadequate supply.

You need a site that is highly visible, convenient (preferably with parking right outside the door) and larger than your initial requirements to allow for expansion.

1. Self-Service Laundromats
Also known as "vend" laundromats, these unmanned facilities feature commercial grade washers and dryers for public use. Modern self-service laundromats typically offer both cash and cashless payment options. These establishments are often open from 6 AM to 11 PM, with some operating 24 hours in high-demand locations.

Self-service laundromats typically require long-term commercial leases and generate consistent cash flow. They are unique in that they don’t carry inventory or receivables, and new laundromats are valued based on construction and equipment costs.

Essential Considerations:

• Equipment: Choose washers and dryers based on local demand (larger machines for families and smaller units for individuals).
• Security: Since these are often unmanned, adding security features like alarms and CCTV can be vital. Cashless payment systems further reduce theft risks.
• Utilities: Ensure that the proper electrical setup, plumbing requirements, and ventilation are in place.

Other Requirements:

• Wi-Fi for cashless payments.
• Bright lighting and auto-locking doors for security.
• Chairs, tables, and vending machines for customer comfort.
• Maintenance services - Daily cleaning and machine upkeep.

2. Fully Serviced Laundromats
A fully serviced laundromat offers more than just self-service laundry; it caters to businesses and time-strapped individuals who need washing, ironing, and dry-cleaning services. This model can be highly profitable, especially in areas with strong demand from local businesses, such as hotels, restaurants, and accommodation places.

Key Considerations:

• Space: In addition to laundry equipment, you will need extra space for a reception, service area, ironing stations, and dry-cleaning racks.
• Staffing: This model requires customer service staff, as well as people to handle laundry processing and deliveries.
• Promotions: Effective marketing is crucial. Consider using signage, social media, and Google to build a customer base.

Other Requirements:

• Additional equipment for ironing and dry cleaning.
• Customer support: Having staff on-site can help build customer trust and assist with any issues using the self-service machines.

Choosing the Right Location
Selecting a prime location for your laundromat is critical to your success. The location should ideally be in a high demand area, with visibility and convenient access for customers. Additionally, consider the size of the space. Ensure it allows for future expansion, if needed. The rent should also be reasonable, as it will be one of your biggest ongoing costs.

Location Criteria:

• High-density residential or hospitality area.
• Convenient parking options.
• Availability of power and plumbing infrastructure.
• A visible, easily accessible site.

Is a Laundromat Right for You?
Investing in a Laundromat can be a lucrative and relatively low-risk business venture. Whether you opt for a self-service or fully serviced model, the laundromat industry offers multiple revenue streams and can be managed with minimal oversight. With the right location, equipment, and marketing efforts, your laundromat can quickly become a dependable and great source of income.

If you’re considering investing in a laundromat, contact us at info@megalaundry.co.za to speak with one of our expert sales representatives who can guide you through the process.