Is Owning a Laundromat Business Profitable?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 3
- 2 min read
If you’re considering investing in a laundromat, you’re likely asking the big question: Is owning a laundromat business profitable? The short answer is yes—when managed correctly, laundromats can deliver steady cash flow, strong margins, and long-term stability. But profitability depends on factors like location, operating costs, and service diversification.
At Wexford Insurance, we specialize in helping laundromat owners protect their investment with tailored insurance coverage. Let’s break down what makes laundromats profitable and what you need to know before diving in.
Why Laundromats Are Considered Profitable
Consistent Demand: Laundry is a necessity, making laundromats recession-resistant.
Semi-Passive Income: Many laundromats operate with minimal staffing, reducing labor costs.
High Success Rate: Laundromats have a 95% survival rate in the first five years.
Average Revenue and Profit Margins
Laundromats typically generate $100,000 to $300,000 in annual revenue, with profit margins ranging from 20% to 35%. Larger facilities or those offering premium services can earn even more. Check out NerdWallet’s guide on laundromat costs and profits.
Key Factors That Impact Profitability
Location
High-density neighborhoods, apartment complexes, and college areas drive foot traffic and consistent usage.
Operating Costs
Expect monthly expenses of $7,500–$21,000, including rent, utilities, maintenance, and insurance.
Explore detailed insights at Laundromat Resource
Service Diversification
Adding wash-and-fold, pickup and delivery, or vending machines can boost revenue by 20–40%.
Equipment Efficiency
Energy-efficient machines reduce utility bills and improve margins.
Learn more about Top commercial laundry equipment brands.
ROI and Payback Period
A well-run laundromat typically achieves annual ROI of 20–30%, with a payback period of 3–5 years.
Don’t Forget Insurance
Profitability isn’t just about revenue—it’s about protecting your investment. At Wexford Insurance, we offer coverage options such as:
General Liability Insurance – Protects against customer injuries
Commercial Property Insurance – Covers your building and equipment
Workers’ Compensation – Required if you have employees
Commercial Auto Insurance – For pickup and delivery services
Equipment Breakdown Insurance – Covers costly machine repairs
How to Maximize Laundromat Profitability
Choose a prime location with high renter density
Invest in energy-efficient machines
Offer premium services like wash-and-fold or delivery
Maintain machines to minimize downtime
Implement marketing strategies to attract and retain customers
Final Thoughts
Owning a laundromat can be highly profitable when you plan strategically and protect your business with the right insurance. At Wexford Insurance, we help laundromat owners secure comprehensive coverage so they can focus on growth and profitability.
Ready to protect your laundromat investment?
Contact us today.