Laundromats of the Future: What Might Change?

2025-09-11 laundrybizcenter

Article by Larry Larsen, the laundromat consultant. Time and again I see the various on-line posts asking about the future of the laundromat industry. What will it look like? Will it be profitable with all the expanding number of stores opening in crowded markets? Several posts talk about the new era of existing Zombie Mats being converted into quality laundromats and the progress of our industry. Is there worthwhile material in these comments?

From my perspective, as a 50-year owner, distributor and consultant in the laundromat business, and an ability to look back as well as forward, here is my assessment of what’s good and what’s negative about the future prospects of the laundromat business.

The most significant change is the blending together of WashDryFold (Fluff & Fold) and pickup and delivery wash services developed in self-service laundromats. Although this can be highly profitable, in certain areas, there are downsides as well. Increased labor costs, store layouts that don’t separate self-service customers from staff operations, lack of storage space for customer orders, increased insurance costs and vastly increased management issues.

A second change is the movement among many factories to encourage the building of supersized locations. Some stores are coming in at the six thousand to twelve thousand square foot locations. Without question there are urban communities that can support very large stores with all the added features presented in these locations. It is important, however, to consider the income per square foot of any convenience items included in locations when opting for larger sizes. Although a mild attraction, children’s play areas, vibrating lounge chairs, libraries and many vending machines do not generate enough revenue to justify their inclusion.

When the laundromats are brand new, all these additional income items appear to be justified, but in 10 years or so, as the store ages, the history in the laundromat industry is that many of these items are found to be too costly to maintain and demand for them diminishes. The money in the laundromat business is generally derived from the huge profits of selling water, electric and gas through vended machines. The past is riddled with pay telephones, vended hangers, ice cream, coffee vendors, water stores, video games and portions devoted to children. Even McDonalds play areas have been removed when corporate determined that the draw of these items did not equal the space, insurance and upkeep to keep them in place.

As I look into my crystal ball, and everyone is entitled to their own views, I think that the future of the laundromat industry and increased competition will:

1) reduce the demand for WashDryFold performed at laundromats within the next ten years,

2) see supersized stores struggle to meet profitability as equipment and service items age,

3) have increased competition from Asian manufactured washers and dryers,

4) continue to fight increasing utility costs,

5) face devastating price wars in overdeveloped urban settings,

6) see more local distributors being taken over by factories and EVI type owners.