Welcome fellow laundry entrepreneurs to another fun filled edition of The Laundry Operator Newsletter!

This week we are going to explore one of the business books that helped shape me into the business operator that I am today. It provided me wisdom and insight that is now part of my personal business tool kit! I approach every new business investment through the lens of this work…and I think you will too. Whether you own a coffee shop, yoga studio, beer joint….or just a humble laundromat, this book will force you to look at it differently going forward and help you succeed. So, drop in your quarters and let’s spin!

There are plenty of business books that tell entrepreneurs how to become successful (and I have read many of them over the decades), but very few of them forced me to stop and ask the most important question: What separates a merely successful business from a truly great one? That is the question Jim Collins set out to answer in the book Good to Great, and more than two decades after its publication, the answer remains completely relevant to the Laundry Operator who wants to do more than simply own a laundromat that pays its bills.

The book was published in 2001 and asks a deceptively simple question: can a good company become a great company, and if so, how? Collins and his research team did not approach that question as motivational speakers looking for inspirational stories; they approached it as researchers looking for patterns, comparing companies that made a transition from good performance to sustained great performance against companies that did not make that transition. The result was a book built around a handful of concepts that became part of the modern business vocabulary in the 2000’s, including Level 5 Leadership, First Who Then What, the Stockdale Paradox, the Hedgehog Concept and the Flywheel Effect. So, finish up that second cup of coffee and that glazed donut, and let’s see how this book can transform your laundry operation go from Good to Great!

The laundromat business can tempt an owner into thinking that their laundromat is primarily about machines, turns, vend prices, utility bills, repairs, attendants, wash-dry-fold, card systems, marketing and competition, and all of which matter, but Collins’s central lesson is that greatness is not created by one clever idea, one spectacular renovation, one new piece of equipment or one brilliant advertising campaign. Greatness is built through disciplined people, disciplined thought and disciplined action, repeated consistently until the business develops momentum. This distinction matters.

A laundromat can be clean and still be mediocre. It can have new equipment and still be mediocre. It can have good employees and still be mediocre. It can have a beautiful store and still be mediocre. It can even be profitable and still be mediocre. The question is whether the owner is building a business that is becoming progressively better, stronger, more disciplined and more capable of producing superior results over time. That is where Good to Great becomes a manual worth putting on the desk of every serious Laundry Operator.

Why Good to Great Is Timeless for the Laundry Operator

The laundromat industry has changed significantly since 2001, but the fundamental problems of running a business have not changed nearly as much as we sometimes imagine.

The machines are different. Payment technology is different. Customers have different expectations. Marketing has changed. Social media did not look anything like it does today. Remote monitoring, mobile payments, cameras, digital advertising and modern equipment controls have transformed the operator’s toolbox. But people are still people and employees still need leadership. Customers still judge businesses by their experience and owners still have to make difficult decisions.

And we know that bad employees can damage a good business, and good employees can transform a struggling business. Owners can sometimes still fool themselves about unpleasant realities and can still become distracted by opportunities that have nothing to do with what they should actually be doing.

And businesses can still spend years making small improvements that eventually compound into something extraordinary…that is why the book remains relevant.

Collins’s research points away from the seductive idea that greatness comes from a single dramatic transformation and toward a much more demanding idea: greatness is the cumulative result of disciplined decisions and consistent action.

For a laundromat owner, that means resisting the temptation to continually chase the next shiny object.

- Maybe the answer is another bank of machines.

- Maybe it is a new loyalty program.

- Maybe it is vending.

- Maybe it is wash-dry-fold.

- Maybe it is pickup and delivery.

- Maybe it is a new sign.

- Maybe it is Facebook advertising.

- Maybe it is another location.

- Maybe it is a complete remodel.

There is nothing inherently wrong with any of those ideas, but Good to Great teaches us to ask a more fundamental question first: Does this move the business toward what it should become, or is it simply another activity? That distinction can save a Laundry Operator years of wasted time, energy and capital.

A Brief Look at Jim Collins

Jim Collins approached business differently from the conventional motivational author. His work is heavily research-oriented, focusing on identifying solid principles that distinguish exceptional organizations from ordinary ones. Collins’s own description of his work emphasizes the search for timeless principles on which people can reliably depend, and concepts from Good to Great have become part of the broader language of leadership and management. That research orientation is important because Good to Great is not simply a collection of opinions about what Collins personally thinks makes a great company. The book is an attempt to identify patterns…patterns that you can replicate. And that is exactly why a Laundry Operator should pay attention.

The laundromat owner does not need another book telling him or her to “work harder.” Most operators already work hard. The operator needs to understand where effort should be directed. The difference is enormous. Working harder on the wrong things simply produces exhaustion. Working with discipline on the right things produces momentum. Once I grasped these concepts, it was transformative in my business career.

1. Level 5 Leadership

The first major lesson of Good to Great is also one of the most challenging.

Level 5 Leadership.

Collins describes Level 5 leaders as possessing a paradoxical combination of personal humility and professional will. These leaders are ambitious, but their ambition is directed primarily toward the organization, its purpose and its success rather than toward personal recognition. Collins’s research identified Level 5 leadership as a consistent feature of companies making the good-to-great transition.

That concept should make every Laundry Operator stop and think. Because owning a laundromat or any other business can easily become an exercise in personal identity and ego...particularly for men.

- “This is my business.”

- “I built this.”

- “I know this business better than anybody.”

- “I have been doing this for twenty years.”

- “I know what customers want.”

- “I know how employees should behave.”

Many times those statements are true, but the danger comes when confidence turns into an unwillingness to listen. A Level 5 Laundry Operator does not need to be the smartest, most accomplished or experienced person in the room. The Level 5 operator needs to be committed to building the best laundromat possible. Those are very different things.

A Level 5 owner can walk into a their store and discover that the attendant is doing something better than the owner would have done it, and instead of feeling threatened, the owner recognizes the improvement, applauds the employees achievement, and makes it part of the system.

A Level 5 owner can also admit that a particular location is underperforming.

A Level 5 owner can admit that an employee is not working out.

A Level 5 owner can admit that a pricing decision was wrong.

A Level 5 owner can admit that a remodel did not generate the expected return.

A Level 5 owner can look at a declining store and say, “This isn’t good enough.”

That is not weakness. That is leadership. The opposite is an owner who becomes emotionally attached to being right (we’ve all worked for one of these people!) And that owner can destroy a business while believing he is defending it.

Applying Level 5 Leadership to a Laundromat

The practical question for the Laundry Operator is not, “Am I humble?” The better questions are:

- Am I willing to put the success of the laundromat ahead of my ego?

- Do I hire people who can eventually become better at certain functions than I am?

- Do I accept bad news from my employees?

- Do I reward people who tell me the truth?

- Do I take responsibility when the business fails to meet expectations?

- When something goes right, do I give credit to the people who made it happen?

This becomes particularly important as an operator grows from one laundromat to several. An owner who insists on personally controlling every decision may be able to survive with one store, but that same behavior becomes a bottleneck with five stores. I learned this early on in my corporate career as a VP managing hundreds of apartment communities across multiple states. As good as I thought I was, I had to lean on my team to get the job done.

Level 5 leadership means building something that can succeed because of the quality of the organization, not because the owner is personally standing in the middle of every problem. This took me years to grasp and implement. The goal for the Owner/Operator is not to become indispensable. The goal is to build an organization that performs exceptionally well…even without you.

2. First Who, Then What

This may be one of the most powerful concepts in Good to Great for the laundromat business.

Collins calls it: First Who, Then What.

The basic idea is that great organizations first get the right people in place and only then determine where they should go. Collins’s research emphasizes having the right people on the bus, the wrong people off the bus and the right people in the key seats before determining the direction of the bus.

Think about that in the context of a laundromat. Many owners begin with the “what.” “What should I do to increase revenue?” “What equipment should I buy?” “Should I add wash-dry-fold?” “Should I increase prices?” “Should I advertise?” “Should I open another location?”

Collins challenges us to think about the people first. Who is running the store? Who is responsible for cleanliness? Who handles customers? Who is responsible for maintenance? Who notices problems? Who can be trusted with money? Who takes ownership when something goes wrong? Who can manage other employees? And perhaps most importantly: Who should not be on the bus?

This last question is uncomfortable, but it is critical. A weak employee can consume an extraordinary amount of an owner’s time. The owner spends time correcting mistakes. Then comes another complaint. Then another scheduling problem. Then another customer complaint. Then another cash-handling issue. Then another machine problem that nobody reported. Then another employee has to be trained because the first employee quit. The owner begins thinking, “I need a better system.”, but often the system isn’t the problem… the person is the problem.

Collins makes the point that if you have the wrong people, other elements of the business cannot compensate adequately.

Applying First Who, Then What

For a single laundromat, this means hiring attendants based not merely on whether they can perform basic tasks but on whether they possess the character and work habits required to protect the business. The ideal employee may not be the person with the most impressive résumé.

You want people who show up. People who notice things. People who care about cleanliness. People who treat customers respectfully. People who can be trusted. People who don’t need to be watched every minute. People who solve small problems before they become big problems. People who understand and take ownership that the condition of the store is their responsibility while they are working. And when the owner begins operating multiple stores, the concept becomes even more powerful. In my career, I made it a point to always hire for attitude first, and skill set secondly. I can teach any employee the skills I need performed, but I can’t teach them to have a good attitude.

The laundromat owner must identify the right people for the key seats. Perhaps one person becomes the lead attendant and another becomes the maintenance coordinator. Another manages wash-dry-fold. Another supervises several locations. The owner is no longer simply hiring workers…the owner is building the bus. And if the bus is filled with the right people, the owner gains something far more valuable than labor. The owner gains organizational capacity.

3. The Stockdale Paradox

Now comes the Good to Great lesson that every business owner eventually needs!

The Stockdale Paradox.

Collins describes it as the ability to confront the brutal facts of reality while simultaneously maintaining unwavering faith that you will prevail in the end. This is one of the most practical concepts in the entire book and one that I regularly to this day practice.

Because running a laundromat requires optimism, but optimism without realism can be dangerous. An owner might say:

- “Business will turn around.”

- “Customers will come back.”

- “The new equipment will fix everything.”

- “Next month will be better.”

- “The competition won’t hurt us.”

- “We just need more advertising.”

- “We’ll figure it out.”

Maybe. But hope is not a business strategy. The Stockdale Paradox says something much harder:

Look directly at reality. If revenue is declining, admit it. If utility costs are destroying margins, admit it. If the store is dirty, admit it. If customers hate the parking situation, admit it. If the equipment mix is wrong, admit it. If the neighborhood has changed, admit it. If your competitor is providing a better customer experience, admit it. If an employee is hurting the business, admit it. If the numbers don’t work, admit it.

But then comes the other half.

Do not surrender. The fact that the store has problems today does not mean it cannot become great. That is the paradox. Brutal honesty and unwavering determination must exist at the same time.

Applying the Stockdale Paradox

A Laundry Operator should regularly examine the business as if an outside investor were reviewing it.

- Look at revenue.

- Look at expenses.

- Look at utility consumption.

- Look at equipment downtime.

- Look at turns.

- Look at customer complaints.

- Look at cleanliness.

- Look at employee performance.

- Look at pricing.

- Look at competition.

- Look at the condition of the building.

Then ask:

What are the brutal facts? Not excuses. Not explanations. Facts.

Once those facts are identified and understood, the owner can act. If dryers are consuming too much gas, deal with it. If machines are producing excessive downtime, deal with it. If attendants are failing to maintain the store, deal with it. If the store looks old and unattractive, deal with it. If the pricing structure is wrong, deal with it.

The objective is not to make yourself feel better with excuses. The objective is to make the business better, and that requires the courage to look at reality without blinking.

4. The Hedgehog Concept

The Hedgehog Concept may be the concept that most directly challenges the Laundry Operator’s tendency to chase opportunities. I am guilty of this…my businesses interests are wide and diverse, and I see opportunities all around me…which is often distracting from what should be my focus.

Collins contrasts the fox, which knows many things, with the hedgehog, which knows one big thing. The fox and the hedgehog are used as a metaphor from an ancient Greek saying attributed to Archilochus. The fox represents a clever creature with many different strategies, while the hedgehog has essentially one simple, powerful defense…curling into a ball and relying on its spines for defense. Great organizations, according to the research, develop a simple, unifying concept that guides their decisions and creates focus and consistency.

The Hedgehog Concept is built around the intersection of three questions:

- What can we be the best in the world at?

- What drives our economic engine?

- What are we deeply passionate about?

Collins emphasizes that the concept is not about what a company wants to be the best at, but what it can realistically become the best at. That distinction is crucial. A Laundry Operator may want to be the best laundromat in the city. What Operator doesn’t want this? But what does that actually mean? Does it mean having the newest machines? Does it mean the lowest prices? Does it mean the largest store? Does it mean 24-hour operation? Does it mean the cleanest store? Does it mean the fastest wash-dry-fold service? Does it mean the best customer service? Does it mean the most convenient location? Does it mean the best value?

The Hedgehog Concept forces the owner to simplify. Instead of chasing everything, determine the intersection of capability, economics and passion. At heart I think I am the fox, however I regularly practice being the hedgehog!

The Laundromat’s Economic Engine

For a Laundry Operator, the economic question is particularly important. What number drives the business? Revenue per square foot? Profit per machine? Cash flow per store? Turns per day? Revenue per available machine? Profit per customer?

The exact economic denominator will vary by the laundromat business model, but the Collins framework requires the owner to identify the economic engine rather than simply watching gross revenue, and this changes the conversation.

An owner may brag:

“We did $800,000 in revenue.” But what did it cost to generate that revenue?

Another owner may have a smaller store generating less revenue but producing significantly stronger cash flow. Which business is better? The Hedgehog Concept pushes the operator toward the economic reality.

Focus Beats Distraction

The Laundry Operator should also be suspicious of every new opportunity.

- Pickup and delivery? Maybe.

- Commercial accounts? Maybe.

- Vending? Maybe.

- Additional locations? Maybe.

- Wash-dry-fold? Maybe.

- Advertising TV screens? Maybe.

But the question should never just be: Can we make money doing this? Almost anything can make money under the right circumstances. The better question is: Does this fit our Hedgehog Concept? If it doesn’t, it may be a distraction. Great businesses are not necessarily the ones doing the most things, but instead they may be the ones doing the right things exceptionally well.

5. The Flywheel Effect

If the first four concepts tell the Laundry Operator how to think, the Flywheel Effect explains how greatness actually begins to appear.

Collins describes a massive flywheel that initially requires enormous effort to move, but after repeated pushing begins to gain momentum, eventually reaching a point where the momentum itself helps drive the wheel forward. This is perhaps the perfect metaphor for building a great laundromat…or any business really.

Imagine a store that is mediocre today (it may be yours). The owner improves the lighting. Then improves cleanliness. Then repairs broken machines faster. Then replaces outdated equipment. Then improves employee training. Then improves the signage. Then improves (or starts) customer communication. Then adjusts pricing. Then improves security. Then improves the parking experience. Then adds amenities that customers actually value. Then develops a reputation for being clean, reliable and well operated.

None of these changes, by itself, transforms the business, but together they begin creating momentum. And then…customers notice, reviews improve, employees become prouder of the store. The owner develops better systems and the store becomes easier to manage. Revenue improves…Cash Flow improves. The owner reinvests...the business becomes even better. More customers come. More cash becomes available for improvements. And the wheel turns again. That is the Flywheel…and when it happens…it is exhilarating!

The Warning: Don’t Look for the Magic Switch

This concept should be particularly encouraging to the small Laundry Operator because it removes the expectation that greatness has to happen overnight. There may be no single magic advertising campaign. There may be no miracle piece of equipment. There may be no one remodeling project that suddenly changes everything. Instead, the operator keeps pushing…and pushing, and pushing. One improvement, then another, then another.

Collins emphasizes that great companies do not rely on one dramatic transformation program to create momentum; they built momentum through consistent action and tangible evidence that their approach was working. That is an important warning for an industry that sometimes becomes obsessed with “the next big thing” which is often not the answer. The answer may be the next small thing done consistently.

Putting the Five Concepts Together

The real power of Good to Great does not come from treating these five ideas as five separate management tricks. They work together as a system, a mindset, a business plan.

Level 5 Leadership establishes the character of the leader (it starts with you!).

First Who, Then What establishes the people.

The Stockdale Paradox establishes the discipline to face reality.

The Hedgehog Concept establishes focus.

The Flywheel Effect establishes momentum.

Put those five together and you have something very powerful. Imagine a Laundry Operator who possesses professional will and determination but does not have the right people. The business struggles. Put the right people in place, but give them no clear direction. The business struggles. Give them direction but refuse to confront reality. The business struggles. Face reality but chase every opportunity that comes along. The business struggles. Develop focus but constantly change strategies before they have time to work. The business struggles.

The concepts reinforce one another. The right people help confront reality. Facing reality helps clarify the Hedgehog Concept. The Hedgehog Concept provides focus. Focus allows disciplined action. Disciplined action turns the Flywheel. And leadership keeps the entire process moving.

What This Means for the Single-Store Laundry Operator

You do not need ten laundromats to apply Good to Great. In fact, the principles may be even more important when you own only one.

A single store is not an excuse for mediocrity. It is an opportunity to establish the standards that will eventually determine whether you remain a single-store owner or become a multi-store operator. Start with the people. Get the right people into the right seats.

Then look brutally at the store. What is not working? What are customers complaining about? What is costing too much? What is being neglected? What is producing the strongest return? Then determine what you can realistically become exceptionally good at. Then start pushing the Flywheel. Do not try to fix everything in one weekend…you are in this for the long game. Choose the next important improvement. Make it happen. Measure the result. Then push again. The owner who does this for five years will likely have a very different business from the owner who spends five years jumping from one idea to another.

What This Means for the Multi-Laundromat Operator

For the operator with multiple stores, the stakes become even higher. At that point, the business is no longer simply a collection of laundromats. It is an organization, and organizations require leadership.

The owner must begin thinking less like the person who fixes everything and more like the person who builds the machine that allows everything to be fixed. That means hiring the right people. Putting the right people into key positions. Establishing standards. Creating accountability. Measuring results. Facing bad news. Removing people who consistently fail to perform. Developing leaders. And continually strengthening the Flywheel.

This is where Level 5 Leadership becomes particularly important. The owner’s personal ambition must evolve. It is no longer simply: “I want to own more stores.”

It becomes:

“I want to build an organization capable of operating great stores consistently.”

That is a much bigger ambition, and it requires a different kind of leader.

The Great Warning in Good to Great

Perhaps the greatest warning for the Laundry Operator is that “good” is dangerous precisely because it feels good enough. A mediocre laundromat owner knows there is a problem. A good laundromat owner may have a profitable store, satisfied customers and decent employees and therefore see little reason to change.

That is where complacency can begin. The store is “doing fine.” The equipment is “good enough.” The employees are “okay.” The cleanliness is “acceptable.” The marketing is “working.” The owner is making money. Nothing appears broken. But greatness does not come from asking whether something is good enough. It comes from asking what it could become. That is the challenge of Good to Great. The goal is not merely to build a laundromat that survives. The goal is to build a laundromat that develops enduring strengths. A business where the right people are in place. A business that tells itself the truth. A business that knows what it is trying to become. A business that refuses to be distracted. A business that improves consistently. A business whose momentum becomes stronger over time.

The Laundry Operator’s Challenge

So here is the challenge I would put before every Laundry Operator or small business owner reading this review.

Walk into your laundromat tomorrow morning and forget, for a moment, that you own it.

· Look at it as an investor.

· Look at it as a customer.

· Look at it as an employee.

· Look at it as a competitor.

· Then ask yourself five questions.

1. Level 5 Leadership:
Am I building this business for my ego, or am I genuinely committed to making the business great?

2. First Who, Then What:
Do I have the right people in the right seats, and am I willing to make difficult personnel decisions when I do not?

3. The Stockdale Paradox:
What are the brutal facts about my laundromat, and am I willing to confront them without losing faith in what the business can become?

4. The Hedgehog Concept:
What can my laundromat realistically become exceptionally good at, what truly drives its economic engine, and what do my people care deeply enough about to pursue consistently?

5. The Flywheel:
What are the small, disciplined actions I can begin taking today that, repeated over and over, will eventually create momentum?

Those five questions may be more valuable than another hundred ideas for increasing laundromat revenue. Because Good to Great is not ultimately a book about laundromats, equipment, advertising or even entrepreneurship. It is a book about disciplined greatness.

And that is precisely why the Laundry Operator should read it. The laundromat industry will continue to change. Equipment will change. Technology will change. Customers will change. Payment systems will change. Marketing will change. The competitive landscape will change. But the fundamental principles of building a great organization will remain.

Get the right people. Face reality. Find your focus. Keep pushing. Build momentum. And never confuse being good enough with being great. The journey from good to great is not a single leap. It is a series of disciplined decisions, made by the right people, grounded in reality, focused around what the organization can truly become, and repeated long enough for momentum to take over. That may be the most important lesson Good to Great has for today’s Laundry Operator.

Don’t wait for the perfect strategy.

Don’t wait for the perfect economy.

Don’t wait for the perfect location.

Don’t wait for the perfect employee.

Begin with the people you have, the facts you know, the opportunities you can realistically pursue and the business that is sitting in front of you today. Then start pushing the Flywheel. And push it again tomorrow. Because the great laundromat may not be created by one extraordinary decision. It may be created by hundreds of ordinary decisions made extraordinarily well, consistently, patiently and with the professional determination to keep pushing long after the excitement of the first improvement has disappeared.

That is the journey from Good to Great.

If you enjoyed this review and are committed to taking your business from Good to Great, I highly recommend that you buy the book and make it part of your business literature arsenal. You can buy used copies of Good to Great on Ebay for under $5.00!

Until next week, we wish you continued success!

Travor Lutz, Editor

The Laundry Operator Newsletter

Your Laundromat Is Selling More Than Clean Clothes

Thank you for joining me again for another edition of The Laundry Operator Newsletter where we strive to perfect our laundry business via great operational skills, strategic marketing, excellent customer service….and perhaps psychological stimulation.

Hold on there you say! We just want to do laundry and pay the bills…now you want us to practice psychology too? Take a breath, sip down the remainder of your latte, and let’s begin unpacking this new bag of laundry! I think you will find it enlightening!

When you walk into almost any successful corporate run retail business today, you will notice something immediately: the environment is intentional, planned, choreographed. A customer walking into an upscale coffee shop does not simply buy coffee. They buy the smell of fresh roasting beans, the comfortable chair, the soft lighting, the music playing quietly in the background, the feeling that they can sit for an hour sipping their $8 coffee…and belong there.

A customer walking into a high-end gym does not simply buy access to exercise equipment. They buy the mirrors, the lighting, the music, the cleanliness, the energy of the room, and the emotional feeling that this is a place where successful, healthy people invest in themselves.

A guest entering a luxury hotel is not impressed merely because there is a bed in the room. They are influenced by the lobby design, the colors, the textures, the artwork, the lighting, the scent, the furniture, and every small detail that communicates one message:

“You are in a place that cares about your experience.”

Despite this, many laundromat owners still approach their stores as if the only things customers care about are machine price, machine availability, and whether the dryers work. Those things absolutely matter and we’ve discussed them at length here…a customer will never overlook broken equipment, dirty floors, or poor maintenance. But modern consumer psychology tells us something important:

Customers do not judge a business only by what it provides. They judge it by how the entire experience makes them feel.

And this is where aesthetics become a competitive advantage...that you may be ignoring.

A laundromat is one of the rare businesses where customers may spend 30 minutes, 60 minutes, or even longer inside the same physical environment. Unlike a convenience store where a customer may be inside for three minutes, laundromat customers have time to observe everything…good and bad.

They notice:

• Is the lighting harsh or relaxing?

• Are the walls painted with intentional colors or do they look neglected?

• Does the seating invite them to stay, or does it tell them to leave?

• Is the music calming or annoying?

• Does the business feel modern and trustworthy?

• Does the environment communicate quality?

Every one of these signals influences the customer’s subconscious perception of value. As you read this, your laundromat customers are being influenced. The science behind this is called environmental psychology and servicescape design—the study of how physical surroundings influence human emotions, decisions, behaviors, and perceptions.

Marketing professor Philip Kotler introduced the concept of “atmospherics” in his influential 1973 paper Atmospherics as a Marketing Tool, explaining that businesses can intentionally design environments to create specific emotional responses that influence customer behavior. Later, researcher Mary Jo Bitner expanded this idea through her groundbreaking Servicescape Theory, demonstrating that the physical environment where a service occurs influences approach behavior, how a customer perceives quality, satisfaction, and their willingness to return.

For laundromat owners, this research creates a powerful opportunity:

Your building, your colors, your lighting, your seating, your signage, your music, and your overall atmosphere are not merely decoration. They are silent salespeople.

The First Seven Seconds — Your Customer’s Brain Judges Before They Think

Before a customer reads your prices, compares your machine sizes, or decides whether your laundromat is worth returning to, their brain has already started forming an opinion.

Human beings are designed to make rapid judgments about environments. This ability developed as a survival mechanism. Our brains constantly evaluate surroundings looking for signals of safety, danger, cleanliness, comfort, and trust. Modern neuroscience calls this type of rapid evaluation thin-slice judgment—the ability of humans to form impressions from very limited information.

A customer entering your laundromat is subconsciously asking:

• “Is this place clean?”

• “Is this place safe?”

• “Do these owners take care of things?”

• “Will my clothes be treated properly here?”

• “Do I want to spend an hour of my life inside this building?”

The customer is not consciously standing there analyzing your paint color or lighting temperature. Their brain is processing thousands of sensory signals.

The flooring.
The smell.
The brightness.
The condition of the machines.
The colors.
The sounds.
The organization.
The furniture.

All of those details combine into one overall emotional conclusion:

“I like this place.”

Or:

“I cannot wait to leave.”

This is why two laundromats can have identical washers and dryers but completely different levels of customer loyalty. The machines perform the same function. The experience does not.

Research in consumer behavior has repeatedly demonstrated that the physical environment influences perceived quality. Studies examining retail atmospherics have found that environmental cues affect store image, expectations of service quality, and customer willingness to continue to using the business. We’ve all been there….be it a fast food restaurant that smells like trash, or a gym that has no music and smudged dirty windows, or the tire shop that has playmate pinups visible in the back office. These environments create an emotion that will stay with us long after we have left them. This is especially important in laundromats because customers are not purchasing a luxury product. They are purchasing a necessary service.

The challenge is that necessity-based businesses often become commodity businesses. When every competitor has washers and dryers, the operator who creates the best experience gains an advantage that competitors cannot easily copy.

The Science of the Servicescape — Your Laundromat Is an Experience, Not Just a Room

Mary Jo Bitner’s Servicescape research changed how businesses think about physical environments. Before this research became widely accepted, many businesses viewed the building itself as merely a container where transactions happened. Bitner demonstrated that the environment itself becomes part of the service.

- A restaurant is not only food.

- A hotel is not only a bed.

- A laundromat is not only machines.

The physical surroundings communicate information about the business. Bitner identified three major categories that influence customer perceptions:

1. Ambient Conditions

These are the invisible environmental factors:

• Lighting

• Temperature

• Noise

• Music

• Air quality

• Smell

Customers may not always consciously notice these elements, but they influence mood and behavior.

2. Spatial Layout and Functionality

This includes:

• Machine arrangement

• Walking space

• Folding tables

• Seating placement

• Customer flow

A poorly designed laundromat creates friction.

- Customers bump into each other and don’t have personal space
- Laundry carts block pathways.
- Folding areas feel crowded.

A well-designed store feels effortless. Customers can select a space that they feel comfortable, and get their work done without feeling in the way or intruded upon by others.

3. Signs, Symbols, and Design Elements

This includes:

• Colors

• Logos

• Fonts

• Artwork

• Décor

• Signage

These elements communicate identity and brand identity. A laundromat with coordinated branding communicates professionalism. A laundromat with mismatched signs, random colors, outdated posters, and inconsistent fonts communicates something very different.

The customer may not say:

“The brand identity lacks consistency.”

But their brain interprets the message:

“This place may not be professionally managed and is not organized.”

Bitner’s research demonstrated that customers use environmental clues to evaluate service providers because services are often intangible. Customers cannot evaluate the quality of a wash before they use it, so they rely on physical evidence to predict quality.

This concept is incredibly important for laundromat operators. Your machines’ “magic” is hidden behind steel doors. Your customers cannot see the quality of your maintenance program. They cannot see your preventative maintenance schedule. They cannot see your financial investment in keeping the store running.

But they can see your environment. Your environment tells your story before you ever speak.

Why Beauty Creates Perceived Value

One of the most interesting discoveries in consumer psychology is that humans often use appearance as a shortcut for evaluating quality.

This does not mean customers are shallow. It means the human brain uses available information to make decisions quickly and efficiently.

Think about two identical restaurants.

Restaurant A has:

• cracked floors,

• faded paint,

• flickering fluorescent lights,

• uncomfortable chairs,

• outdated signs.

• tattered menus

Restaurant B has:

• fresh paint,

• attractive lighting,

• coordinated colors,

• comfortable seating,

• clean surfaces.

• Professional, organized menus

Even if the kitchen equipment and ingredients are identical, most customers will assume Restaurant B provides better quality. The same psychological process happens in laundromats.

A beautiful laundromat creates a perception of:

• better maintenance,

• higher cleanliness,

• greater professionalism,

• stronger ownership,

• safer environment.

This perception matters because perceived value influences willingness to pay. A customer is more likely to accept a slightly higher wash price when the entire experience feels superior.

This is why premium businesses rarely compete only on price. They compete on perception.

Apple does not sell computers based solely on processing speed. Hotels do not sell rooms based solely on square footage. Coffee shops do not sell coffee based solely on caffeine content. They create environments where customers emotionally connect with the brand.

A laundromat can do the same.

The Emotional Connection — Why Customers Remember How Your Store Makes Them Feel

One of the most powerful findings from neuroscience and psychology is that human memory is strongly connected to emotion. People often forget specific details, but they remember how an experience made them feel.

This is why a customer may not remember the exact price they paid for a wash six months ago, but they remember:

“That laundromat is always clean.”

“The owner really takes pride in the place.”

“I actually enjoy going there.”

“I can sit comfortably while I wait.”

Those emotional impressions become the foundation of loyalty. A laundromat visit is often associated with a chore that customers would rather avoid. The average customer is not excited about doing laundry. They are giving up time. They are carrying heavy bags or baskets.

They may be tired after work. They may have children with them. They may be dealing with the stress of everyday life. A smart laundry operator recognizes this and asks:

“How can I transform a necessary chore into a more pleasant experience?”

This is where aesthetics become powerful.

- A comfortable chair can reduce frustration.

- A peaceful video display showing mountain landscapes or koi ponds can create a calming mental break.

- Warm lighting can make the space feel more welcoming.

- Soft background music can make waiting feel shorter.

- Thoughtful colors can create a sense of cleanliness and order.

The goal is not to create a luxury spa but is to create an environment where customers think:

“If I have to do laundry, this is the place I want to do it.”

That emotional preference is incredibly valuable because it creates repeat customers. And repeat customers are the foundation of profitable laundromats.

The Science of Color — Your Walls Are Communicating With Customers

Most laundromat owners understand the importance of cleanliness, but many underestimate the psychological impact of color. Paint is often viewed as a simple maintenance decision: pick something that looks good, roll it on the walls, and move on. I will never forget when we refreshed one of our laundromats shortly before we sold it. We went to great lengths to pick inviting colors and to select walls for accent colors. The buyers, I am sure with good intentions, came in and immediately painted the walls hospital white. As a side note, the buyer struggled with operating the laundromat for about 8 months until they threw in the towel and sold it.

All that to say, color is one of the strongest environmental signals humans process. Before customers read your signs, evaluate your equipment, or interact with your employees, they experience the visual impression created by your color palette. Color influences emotions, perceptions of cleanliness, energy levels, and even how long people feel comfortable remaining in an environment.

Research in environmental psychology has shown that colors influence emotional responses through associations developed over time and through physiological reactions to visual stimulation. Warm colors, cool colors, saturation levels, and brightness all contribute to how people interpret a space. For a laundromat operator, the question is not:

- “What color do I personally like?”

The better question is:

- “What emotional response do I want my customers to experience?”

A successful laundromat should communicate:

• Cleanliness

• Freshness

• Safety

• Modernity

• Comfort

• Trust

Certain colors, carefully applied and coordinated, naturally support those perceptions.

Blue: Trust, Cleanliness, and Calm

Blue has long been associated with reliability, cleanliness, and professionalism. This is one reason so many companies in industries involving trust use blue in their branding:

• Healthcare

• Banking

• Technology

• Insurance

A laundromat using soft blues, especially when combined with white, gray, or natural wood tones, can create a feeling of freshness and cleanliness without feeling sterile. However, laundromat operators should be careful with excessive use of dark blues. A room dominated by navy or deep blue can sometimes feel heavy or cold.

Green: Nature and Restoration

Green connects strongly with nature and renewal. It is often used in environments designed to create calmness because humans have a connection with natural landscapes. A laundromat incorporating green accents through paint, plants, artwork, or digital displays can create a more relaxing and soothing environment.

Neutral Colors: The Foundation of Professional Design

Modern commercial spaces frequently use:

• Soft grays

• Warm whites

• Beige tones

• Natural wood finishes

Why? Because neutral colors create flexibility. They allow machines, signage, artwork, plants, and seating to become visual highlights. A laundromat does not need bright primary colors everywhere to communicate energy. In many cases, excessive bright colors can create visual fatigue (as if laundry day was not fatiguing enough already!).

Accent Colors Create Memorability

A common mistake is either using no design strategy or using too many competing colors. Professional environments typically use a consistent formula:

• One primary brand color

• One secondary supporting color

• One accent color

This creates recognition.

When customers repeatedly see the same colors on:

• Exterior signs

• Interior walls

• Employee shirts

• Digital displays

• Marketing materials

the brain begins associating those visual cues with the business. This is called brand consistency, and research has shown that consistent branding improves recognition and trust.

Your laundromat should not look like a collection of random decisions made over 15 years. It should look intentional.

Lighting — The Cheapest Renovation With One of the Biggest Psychological Impacts

Lighting may be one of the most overlooked profit opportunities in a laundromat. Many older stores still rely on harsh fluorescent lighting because it is inexpensive and practical. Lighting does much more than allows customers to see. Lighting influences:

• Mood

• Comfort

• Perceived cleanliness

• Energy

• Safety

• Time perception

A brightly lit room can communicate cleanliness, but overly harsh lighting can make a space feel institutional and uncomfortable. Think about the difference between:

- A hospital hallway with cold fluorescent lighting.

Versus:

- A modern hotel lobby with layered, warm lighting.

Both spaces may be equally clean, but they create completely different emotional reactions.

Color Temperature Matters

Lighting is measured in what is known as Kelvin (K).

Generally:

• 2700K–3000K = warm, relaxing light

• 3500K–4100K = neutral commercial lighting

• 5000K+ = very cool, intense lighting

A laundromat usually benefits from a balanced approach. The customer needs enough brightness to feel safe and see clearly, but the environment should not feel like a warehouse.

A thoughtful design might include:

• Brighter lighting around machines

• Softer lighting in seating areas

• Accent lighting near folding areas

• Decorative fixtures near customer comfort zones

This creates visual zones that the customer immediately understands:

- “This is the working area.”

- “This is the relaxing area.”

Lighting and Safety Perception

Customers make unconscious judgments or have “gut feelings” about safety based on environmental cues. Dark corners, poorly lit entrances, and shadowy areas can create discomfort.

This matters especially in laundromats because many customers visit:

• Early morning

• Late evening

• Overnight

A well-lit entrance communicates: “We care about your safety….welcome!”

Modern Lighting Also Improves Perceived Quality

Replacing outdated fluorescent fixtures with modern LED systems can completely transform an older store. When we took over an abandoned laundromat, the first thing we budgeted was sleek, LED ceiling lighting that on its own practically brought the laundromat back to life!

The investment was relatively modest compared with major renovations, yet the psychological impact can be dramatic.

A customer may never say:

- “The CRI rating of your lighting is excellent.”

But they may say:

- “This place feels nicer.”

That is the goal.

Comfort Is Not an Expense — It Is a Customer Retention Strategy

Many laundromats treat seating as an afterthought. A few plastic chairs are placed against a wall because customers need somewhere to sit…and they miss a major opportunity.

Your customer may spend an hour inside your business. What other businesses get an hour of uninterrupted customer attention? Very few.

The question becomes:

- “What emotional experience happens during that hour?”

Uncomfortable seating creates a subtle message:

- “We want you to complete your transaction and leave.”

Comfortable seating creates a different message:

- “You are welcome here.”

This distinction matters.

The Psychology of Dwell Time

Retail research has repeatedly demonstrated that when customers feel comfortable in an environment, they tend to remain longer and develop more favorable attitudes toward the business. A laundromat cannot force customers to enjoy waiting. But it can remove unnecessary discomfort.

Consider adding:

• Comfortable upholstered chairs

• Small tables

• Charging stations

• Work counters

• Children’s areas

• Coffee stations

• Digital TVs with relaxing videos and images

• Plants

• Reading materials

These features transform waiting time into usable time.

A customer who can comfortably:

• Answer emails

• Watch a show

• Read

• Relax

• Drink coffee

does not experience laundry as negatively. The business becomes less of a chore and more of a routine stop.

Soft Seating Sends a Psychological Signal

Furniture communicates expectations. Plastic chairs communicate utility. Comfortable seating communicates hospitality. This is why airports, hotels, restaurants, and offices invest heavily in furniture selection.

Furniture is not decoration. Furniture shapes impressions.

Music, Sound, and the Invisible Customer Experience

Sound is one of the most powerful environmental influences because customers cannot turn off their hearing.

A laundromat filled with:

• Loud machines

• Television news

• Random advertisements

• Echoing walls

creates a completely different experience than a store with intentional background audio.

Research in retail psychology has shown that music influences mood, pace of movement, evaluations of the environment, and purchasing behavior. A famous study by Milliman (1982) demonstrated that slower background music in retail environments influenced customer movement patterns and increased time spent shopping.

While a laundromat is not a grocery store, the principle remains relevant: The emotional environment influences behavior.

What Type of Music Works Best?

For many laundromats, the goal is not entertainment…the goal is atmosphere.

Consider:

• Soft instrumental music

• Acoustic music

• Light jazz

• Relaxing contemporary music

• Nature-inspired sounds

The music should support conversation and relaxation. It should never compete with customers.

Television Choices Matter

Many laundromats install televisions showing:

• News channels

• Sports

• Cable programming

This may work in some locations. However, operators should consider the emotional effect.

Constant exposure to:

• Political arguments

• Negative news

• Crime stories

• Commercial interruptions

may create unnecessary stress.

Alternative options include:

• Nature documentaries

• Aquarium videos

• Koi pond videos

• Mountain landscapes

• Ocean scenes

• Relaxing travel footage

These create a calmer environment. One of our companies years ago, was a medical clinic. Our large screen TV in the lobby was programed with videos of mountain snowfalls, fields of lilies blooming in the sunlight and coral reefs teeming with fish. It was sometimes difficult to dislodge our clients from the comfy seating and relaxing images!

Biophilic Design — Bringing Nature Into the Laundromat

One of the fastest-growing concepts in modern architecture is biophilic design.

The idea is simple:

Humans are biologically attracted to natural environments. For thousands of years, human beings were surrounded by:

• Trees

• Water

• Natural landscapes

• Sunlight

• Organic textures

Modern buildings removed many of these elements, but research has shown that exposure to natural elements can improve mood, reduce stress, and increase feelings of well-being.

A laundromat can incorporate biophilic design without expensive construction.

Examples include:

• Live plants

• Nature photography

• Green walls

• Wood textures

• Water features

• Nature videos on televisions

Imagine the psychological difference between:

- A customer sitting on a hard chair staring at a blank wall.

Versus:

- A customer sitting comfortably while watching a peaceful mountain stream or koi pond.

The laundry still takes the same amount of time but the customer experience feels completely different.

Fonts, Signs, and Brand Consistency — Details Customers Notice Without Knowing

Many operators spend thousands of dollars on machines but neglect signage. This is a mistake. Signs communicate professionalism.

A store with:

• Five different fonts

• Random colors

• Old handwritten notices

• Faded posters

creates visual confusion. I’ve told the story before, but one of the stores we purchased had about $400 worth of poster board and sharpie signage invested in it! If there was a blank wall, there was a handwritten sharpie sign touting wash & fold services, rules and regulations and anything else that popped into the mind of the operator. Our first mission upon closing was to rip everything down!

In contrast, a professional store uses consistency:

• One font family

• Coordinated colors

• Clean directional signs

• Clear pricing displays

• Professional instructions

Customers interpret organization as competence. If your signs look neglected, customers may subconsciously wonder:

- “What else is neglected?”

The opposite is also true….professional signage creates confidence.

The Financial Return — Why Aesthetics Can Increase Revenue

The biggest objection many operators reading this have is: “That sounds nice, but does it make money?”

The answer from consumer psychology is a resounding yes. A better environment can influence:

• Customer satisfaction

• Repeat visits

• Word-of-mouth referrals

• Price tolerance

• Perceived value

A customer who enjoys visiting your laundromat is less likely to switch because another competitor offers a slightly cheaper wash. Price competition is exhausting. Experience competition creates loyalty. The goal is not to create the most expensive laundromat but to create the laundromat customers prefer.

Twenty Affordable Upgrades Every Laundry Operator Can Make

Not every improvement requires a major renovation, and not every improvement may be necessary for your business, however many high-impact changes are inexpensive.

Visual Improvements

1. Repaint walls using a coordinated color scheme. If you are not good with color selection, take advantage of free color coordinating tools such as Sherwin-Williams Color Visualizer, or the Behr Color Visualizer or the Valspar Color Visualizer.

2. Replace outdated posters with professional signage. If the sign looks like you bought a Sharpie and a Poster Board…take it down. With free AI such as ChatGPT and Grok, you can make professional looking signage that you can print and then take to your local sign shop and have them printed on Coroplast sheets (i.e. lightweight, waterproof corrugated plastic panels).

3. Create consistent fonts throughout the store. Pick a Font…and use it consistently.

4. Add attractive wall artwork.

5. Remove visual clutter.

Lighting Improvements

6. Replace old fluorescent bulbs with quality LEDs.

7. Add warmer lighting near seating areas.

8. Improve lighting near entrances.

9. Eliminate dark corners.

Comfort Improvements

10. Upgrade customer seating. We outfitted two of our stores with high quality, comfortable but durable chairs from defunct offices that we found on Craigslist. Don’t fill up your laundromat with a bunch of mismatched seating…find a bulk supply and keep the look consistent.

11. Add small tables for customer use, to minimize customer’s use of folding tables to store their supplies and personal items.

12. Add charging stations.

13. Create a comfortable folding area.

14. Add a children’s corner.

Atmosphere Improvements

15. Install relaxing background music.

16. Add nature videos to televisions. We used a thumb drive plugged into the back of a large screen TV that rotated thousands of soothing video images. No need for Internet connection, just plug and play!

17. Add plants or natural décor. Even if your customers don’t acknowledge the plants, they can feel them. Well placed, well cared for plants throughout add to the calm atmosphere you are aiming for.

18. Improve air quality and scent. We used scent dispensers in strategic locations that were not overpowering, but were pleasant and identifiable.

Brand Improvements

19. Coordinate exterior and interior colors whenever possible.

20. Make every customer touchpoint communicate professionalism.

Conclusion: The Future of Laundromats Will Belong to Operators Who Sell an Experience

The laundromat industry has always been built around machines, but the future belongs to operators who understand people. Customers do not simply remember whether the washer worked, they remember whether they felt comfortable. They remember whether the business felt clean. They remember whether the environment respected their time.

The most successful laundromats will not simply be places where clothes are washed. They will be places where customers feel better while they wait. That is the psychological power of aesthetics…that is the science of experience!

And that is an opportunity every Laundry Operator can use to create a stronger, more profitable business.

We at The Laundromat Operator Newsletter wish you success!

Travor Lutz, Editor

The Laundry Operator Newsletter

Scientific Sources & Further Reading

Bitner, Mary Jo. (1992).
Servicescapes: The Impact of Physical Surroundings on Customers and Employees.
Journal of Marketing, 56(2), 57–71.

Kotler, Philip. (1973).
Atmospherics as a Marketing Tool.
Journal of Retailing, 49(4), 48–64.

Mehrabian, Albert & Russell, James A. (1974).
An Approach to Environmental Psychology.
MIT Press.

Milliman, Ronald E. (1982).
Using Background Music to Affect the Behavior of Supermarket Shoppers.
Journal of Marketing, 46(3), 86–91.

Mattila, Anna S. & Wirtz, Jochen. (2001).
Congruency of Scent and Music as a Driver of In-Store Evaluations and Behavior.
Journal of Retailing.

Spence, Charles. (2014).
Multisensory Marketing: A Bibliographic Review and Research Agenda.
Psychology & Marketing.

Kapferer, Jean-Noël.
The New Strategic Brand Management.
Kogan Page.

Ulrich, Roger S. (1984).
View Through a Window May Influence Recovery from Surgery.
Science, 224(4647), 420–421

Greetings Friends and Fellow Laundromat Enthusiasts to another edition of the little publication we humbly call The Laundry Operator Newsletter!

Each week we endeavor to cover the topics every laundromat investors, operator or manager will encounter at some time. Our goal is to give you some of the answers, before the questions arise. This week, we are going to take a wide-eyed, deep-dive into camera security systems. If you have not yet finished your double expresso or energy drink…now is the time to guzzle it down. We have some ground to cover!

When you walk into almost any successful laundromat today, you will notice something interesting. The best operators are no longer simply selling washing machines, dryers, soap, and folding services. They are creating safe, comfortable, welcoming environments where customers feel confident spending an hour or more of their valuable time. The cleanliness of the floors, the brightness of the lighting, the comfort of the seating, the appearance of the machines, and even the music playing in the background all contribute to a customer’s perception of quality. However, there is another invisible element that separates professionally operated laundromats from struggling locations: the feeling of security.

Customers may never walk into your store and say, “I chose this laundromat because they have a high-quality surveillance system.” But they absolutely notice when a business feels unsafe, poorly managed, or neglected. A customer who is worried about leaving their laundry unattended because of theft, loitering, vandalism, or suspicious activity will eventually find another laundry facility.

For the laundromat owner, a properly designed security camera system is much more than a tool for catching criminals after something happens. Modern surveillance technology has evolved into a complete business management system that can help prevent losses, protect employees, resolve customer disputes, monitor operations remotely, reduce insurance risk, and provide peace of mind when you are not physically standing inside your store.

The challenge is that buying a security system today can be confusing. Back in the dark ages (i.e. the 1980s!) your choices for camera systems were limited and expensive. Now, the market is filled with hundreds of options ranging from inexpensive consumer cameras designed for a baby’s nursery or a residential front door, all the way to sophisticated commercial-grade systems costing thousands of dollars. The difference between these systems is not always obvious when you are looking at a product page online.

A camera advertised as “4K Ultra HD” may sound impressive, but resolution alone does not determine whether a system is right for a laundromat. A cheap camera may capture a beautiful image during daylight but become almost useless when the lights dim at night. A system may offer smartphone viewing but provide poor security because it lacks proper encryption. A camera may record everything but have such limited storage that the important video you need has already been automatically deleted.

The goal of this buyer’s guide is to help laundromat owners understand what features actually matter, why those features are important, and where investing additional money creates measurable business value.

Disclaimer: The Laundry Operator Newsletters is 100% reader supported. We do not have any affiliations or business relationship with any of the manufacturers or suppliers listed herein, and in fact, any mentioned manufacturers will first see their names mentioned at the same time you are reading this. That being said, let’s get focused!

A laundromat is different from many other retail businesses. It typically operates long hours, often seven days per week, and many locations operate without employees present during evenings or overnight hours. During these periods, customers may leave personal belongings unattended for extended periods. Large amounts of cash may be handled through change machines, bill changers, vending machines, or service counters. Expensive equipment sits openly available to the public. Employees may work alone during certain shifts. This combination creates unique security challenges.

A well-designed surveillance system can help address problems such as:

• Equipment vandalism: Commercial washers and dryers cost thousands of dollars. A damaged door, broken coin mechanism, or intentional misuse can quickly become an expensive repair.

• Theft: Customers occasionally report stolen clothing, missing belongings, theft from vending machines, or money taken from unattended areas.

• False claims: Unfortunately, businesses sometimes face inaccurate complaints about injuries, damaged clothing, lost items, or employee behavior. High-quality video evidence can protect an honest operator.

• Employee accountability: Cameras are not meant to replace trust, but they provide valuable oversight for cash handling, cleaning schedules, opening procedures, and closing procedures.

• Customer safety: Video footage can help identify suspicious behavior before it becomes a serious problem.

• Insurance documentation: Some insurance providers recognize professionally installed security systems as part of a comprehensive risk-management program and price their policies based on whether you have taken proactive steps to secure your business.

The financial argument is straightforward. A laundromat owner may hesitate to spend $2,000, $5,000, or even $10,000 on a professional security system…however, consider the cost of just one serious event. A vandalized bank of dryers, a stolen payment terminal, repeated theft from customers, a slip & fall near a leaking washer, a lawsuit without evidence, or an employee-related incident, can easily exceed the cost of a good surveillance system. I have told the story before, but is worth re-telling here. One of my competitors had a guy and gal walk into their unattended laundromat during the day; him wearing a mask and carrying a crowbar and her carrying a beer. They proceeded to bash the coin change machine into oblivion. The damage to the coin machine was extensive; however the couple was apprehended via the security camera footage showing the guy with a mask and crowbar, and the girl with her beer…and no mask (no judgement here…we all have our priorities…beer vs. mask). She was subsequently apprehended and they both were arrested. A good surveillance system is not an expense; it is an asset protecting every other asset inside your business.

The key phrase is good surveillance system. Buying the cheapest cameras available (or worst yet, buying fake cameras!) and placing them randomly around the store is not the same as creating a professional security strategy. The best laundromat operators think about surveillance the same way they think about equipment purchases. They ask:

“What problem am I solving?”

“What features will actually help my business?”

“What system will still be valuable five years from now?”

This mindset leads to smarter purchasing decisions.

Understanding Today’s Security Camera Technology

Security cameras have changed dramatically over the past decade. Older analog systems that produced grainy images and required specialized monitors (think a 7-11 in the ‘80s) have largely been replaced by digital systems capable of recording high-definition video, storing weeks of footage, sending instant alerts, and allowing owners to monitor their laundromat from anywhere in the world. For a laundromat owner, understanding the basic technology categories makes purchasing much easier.

Resolution: More Pixels Are Not Always Better

One of the first specifications most buyers notice is resolution. Today’s cameras commonly advertise:

• 1080p Full HD

• 2K

• 4MP

• 5MP

• 8MP (commonly called 4K)

Higher resolution means the camera captures more image detail. This can be extremely valuable when trying to identify faces, read clothing details, or recognize license plates. However, resolution is only one piece of the puzzle.

A poor-quality 4K camera with a weak image sensor may perform worse at night than a high-quality 1080p commercial camera with superior low-light technology.

For laundromats, a practical recommendation is:

• 1080p: Minimum acceptable resolution today for basic coverage.

• 4MP–5MP: The sweet spot for most laundromats.

• 4K/8MP: Ideal for important areas where detail matters, such as entrances, cash handling areas, change machines, and parking lots.

A common mistake is installing lots of low-quality cameras instead of fewer strategically placed high-quality cameras. The objective is not to have the most cameras but to instead have useful video produced by high quality cameras in strategic locations.

Camera Types: Choosing the Right View

Commercial security systems generally offer four primary camera styles to tailor the coverage for the space you are defending.

1. Dome Cameras

Dome cameras are one of the most popular choices for indoor laundromat surveillance because they provide excellent coverage while maintaining a clean, professional appearance that blends naturally into the customer environment. Their rounded housing makes it difficult for customers or potential criminals to determine the exact direction the camera is facing, which can provide an added deterrent against theft or vandalism. Many commercial dome cameras feature wide-angle lenses, infrared night vision, vandal-resistant housings, and high-resolution image sensors capable of capturing important details such as faces, clothing, and customer activity. Dome cameras are particularly well suited for areas such as main laundry areas, folding tables, seating areas, entrances, and payment locations where broad visibility and a discreet appearance are important.

2. Bullet Cameras

Bullet cameras are the traditional long, cylindrical-style cameras often seen mounted on building exteriors, and they remain one of the best choices for monitoring laundromat entrances, parking lots, driveways, and exterior areas. Their design allows them to use larger lenses and more powerful infrared illumination, making them excellent for capturing activity at longer distances. Many commercial bullet cameras include adjustable mounting brackets, weather-resistant housings, and advanced features such as license plate recognition, long-range night vision, and AI-based vehicle or person detection. For laundromat operators, bullet cameras provide a visible security presence that can discourage criminal activity while delivering detailed footage of vehicles, customers entering and leaving, and incidents occurring around the outside of the building.

A bullet camera aimed at the parking lot can capture valuable information regarding vehicles, suspicious activity, and after-hours incidents. One of our laundromat bullet cameras helped apprehend a thief who cased the liquor store two doors down from us. One of our interior bullet video cameras allowed the police to identify the perp’s pickup truck driving back and forth in front of our shopping center the night of the robbery.

3. Turret Cameras

Turret cameras have become increasingly popular in commercial security installations because they combine many of the advantages of dome and bullet cameras into a flexible, high-performance design. Sometimes called “eyeball cameras,” turret cameras feature a ball-shaped camera module mounted on an adjustable base, allowing installers to precisely aim the viewing angle while reducing many of the infrared reflection issues sometimes found with traditional dome cameras. They typically provide excellent low-light performance, sharp image quality, and easy maintenance because the camera lens is more accessible for cleaning and adjustment. For laundromats, turret cameras are an excellent choice for interior areas, entrances, and exterior locations where the operator wants strong image quality, reliable nighttime performance, and simple installation.

4. PTZ Cameras (Pan-Tilt-Zoom)

PTZ cameras can physically move, allowing operators to remotely control the viewing direction. They sound attractive because one camera can cover a large area. However, there is an important limitation. A PTZ camera can only look in one direction at a time. If someone walks behind it while it is pointed elsewhere, that activity may not be recorded. For laundromats, PTZ cameras are usually best used as a supplement, not as the primary security solution.

Night Vision and Low-Light Performance Considerations

Many laundromats operate during early mornings, evenings, or overnight hours. Therefore, nighttime performance is one of the most important buying considerations. There are several technologies available:

Infrared (IR) Night Vision

Traditional night vision uses infrared LEDs to illuminate the area. Think of infrared as invisible flashlights that are only visible by the camera. They will illuminate specific target areas that you wish to view.

Advantages:

• Works in complete darkness

• Reliable

• Cost effective

Disadvantages:

• Produces black-and-white images

• Limited color identification

Color Night Vision

Newer cameras use advanced sensors and software to produce color images in very low light. This is very useful when trying to identify a suspects clothing during night time viewing.

Advantages:

• Helps identify clothing colors

• Provides better evidence

• More natural images

Disadvantages:

• Requires some available light

The Security Features That Actually Matter for Laundromat Owners

A common mistake when purchasing a security system is focusing on impressive-sounding features rather than useful business features. Many manufacturers pad their system with lots of data and features that don’t necessarily transfer into a great system. I have fallen victim to this tactic when purchasing the latest and the greatest electronic gadgets. The longer the features list, the better the product, right? Maybe, but in the case of security cameras, the best system is not necessarily the one with the longest list of features. It is the one with features that solve real problems unique to your laundromat.

1. Artificial Intelligence Detection: The Biggest Advancement in Modern Security

Artificial intelligence has transformed security cameras from passive recording devices into active business tools. Older cameras simply recorded everything…newer systems record anything when they detect movement…but modern systems can capture and analyze what they see. For example, instead of receiving hundreds of meaningless motion alerts caused by moving shadows, insects, or changing lighting, AI-powered cameras can recognize:

• People

• Vehicles

• Loitering

• Objects

• Movement patterns

This is particularly valuable for laundromats. Imagine receiving an alert: “A person detected near rear entrance after closing.” That is much more useful than: “Motion detected.”

One of our laundromat locations had a “rat” problem caused by the adjoining donut shop and Chinese food joint. At night, when this laundromat was closed, rats would occasionally trigger our burglar alarm system’s motion detectors as well as the camera motion alerts, as the rats traveled through our laundromat from the sandwich shop to get a donut a couple doors down. It was not ideal to get vermin alerts in the middle of the night, and had it been available, AI could have helped eliminate this problem.

2. Line Crossing & Person Detection

Line crossing detection is one of the most practical artificial intelligence features available in modern security camera systems because it allows a laundromat owner to create invisible security boundaries within the camera’s viewing area. Think of them as invisible “no go areas” within your business. Instead of simply recording motion, the camera can be programmed with a virtual line across a specific location and send an alert whenever a person or vehicle crosses that line in a designated direction.

For a laundromat operator, this feature can provide valuable protection in several real-world situations. A virtual line can be placed across a rear employee entrance to alert the owner if someone enters after hours, across a doorway leading into a restricted maintenance area, or around a cash-handling area where unauthorized access should not occur. Exterior cameras can use line crossing detection to identify when someone approaches a building entrance late at night, enters a closed parking area, or crosses onto a restricted portion of the property.

The advantage of modern AI-powered line crossing detection is that it can distinguish between meaningful activity and harmless movement. Older motion sensors might trigger dozens of false alerts from changing shadows, insects, moving tree branches, or passing headlights. Advanced systems can be configured to detect only people or vehicles crossing the designated boundary, making alerts far more useful and reducing unnecessary notifications. For laundromat owners who operate unattended locations or multiple stores, line crossing detection provides an extra layer of awareness by turning cameras from passive recording devices into proactive security tools that can notify the owner when something important is happening.

3. Loitering Detection

Loitering detection identifies when someone remains in a specific area longer than expected. One of our facilities’ exterior breezeway was a magnet for homeless people wanting to sleep off their evening’s liquid dinner. They usually would find a quiet corner and camp out. Loitering Detection can help eliminate this.

This can help operators address:

• Overnight unwanted activity both in and outside your laundromat.

• People sleeping inside the facility (or passed out…yes, it happens)

• Suspicious behavior near machines

4. Facial Recognition: Useful but Complicated

Facial recognition technology exists, but laundromat owners should approach it carefully. While it may sound attractive, there are privacy, legal, and ethical considerations depending on location. Just read the news today, and you will find some pretty heated discussions on Flock Cameras that have been deployed in many large cities. While I can make the case for their lawful use and benefit, I can also image how these cameras can be misused. For most laundromats, excellent video quality and AI person detection provide more practical value than facial recognition.

5. Remote Viewing: The Feature Every Owner Should Have

One of the greatest benefits of modern systems is the ability to view your laundromat from anywhere. In the 80’s you had to go to your store, rewind the tape after an incident, and then watch hours of video looking for clues. Now, a good system allows real time monitoring and the ability to speed through days of data to pull your evidence. This feature was invaluable when we ran multiple operations.

A good mobile application allows owners to:

• Check store conditions (including temperature, humidity, sounds)

• Verify opening and closing by staff

• Watch employees complete cleaning duties

• Investigate customer questions or incidents

• Respond quickly to problems

For multi-location operators, remote viewing becomes even more valuable because one owner can oversee several stores without physically visiting each location.

Data Storage, Privacy, Cybersecurity, and Video Retention — The Part Some Operators Forget to Ask About

When laundromat owners begin shopping for a security camera system, most naturally focus on the cameras themselves. They compare resolution, night vision, viewing angles, and mobile apps. Those features are important, but there is another part of the system that is equally important and often overlooked: what happens to the video after the camera captures it.

A security camera is only as valuable as your ability to retrieve the footage when you need it. I know I continue to date myself, but in the good-ole-days, all the bad guy had to do was remove the video tape cassette as he ran out of the business with the loot. Some systems today are equally susceptible to being compromised, either intentionally or by user-error. A beautifully recorded video that has already been automatically deleted, corrupted, or locked behind an expensive subscription plan does not protect your business. The storage system is the foundation that determines how much evidence you have, how quickly you can find it, and how securely it is protected.

There are three primary ways modern security systems store video:

1. Local storage using an NVR or DVR.

2. Cloud-based storage.

3. Hybrid systems combining both.

Each option has advantages and disadvantages, and the best choice depends on your laundromat size, internet reliability, budget, and how much control you want over your data.

1. Local Storage: The Traditional Commercial Approach

Most professional commercial security systems use a device called an NVR, which stands for Network Video Recorder. The NVR acts as the brain of the system. Your cameras send video to the recorder, which stores the information on internal hard drives. The owner can access the footage through a monitor, computer, or smartphone application.

For laundromat owners, local storage provides several advantages, including No Monthly Cloud Fees. Once the equipment is purchased, there is usually no required monthly subscription. This is attractive for operators who plan to keep the system for many years. A laundromat with 12 cameras recording continuously may generate enormous amounts of video that needs to be stored. Cloud storage subscriptions can become a significant ongoing expense. Additionally, an NVR offers More Control Over Your Data. With local storage, the video physically remains at your business location. For many owners, this creates peace of mind because they know exactly where their footage is stored.

A NVR will typically Work Even During Internet Outages. A properly configured local system can continue recording even if the internet connection fails. This is an important consideration because many laundromats operate in locations where internet reliability may occasionally be an issue. A cloud-only system without internet connectivity may temporarily stop uploading footage.

The Disadvantage: Physical Security Matters

The biggest weakness of local storage is that the recorder itself exists inside your business. If a criminal breaks into your laundromat and steals the NVR, they may also steal the evidence.

Professional installations often place the recorder:

• Inside a locked or hidden cabinet

• In a secured office

• Above ceilings

• In restricted areas

Some systems also allow backup recording to another location such as an NVR in another location which would provide another layer of safe data storage.

2. Cloud Storage: Convenient but Requires Understanding the Costs

Cloud-based security systems have become increasingly popular because they simplify installation and remote access. Instead of maintaining a recorder inside your laundromat, video is uploaded to secure remote servers. This business model, for obvious financial reasons, is heavily promoted by security system vendors because it represents a reoccurring income source for them.

Advantages include:

· Protection Against Equipment Theft

If someone steals the camera recorder, the footage will still exist online.

· Easy Multi-Location Management

For operators with several laundromats, cloud systems can make it easier to manage multiple stores from one dashboard.

· Automatic Updates

Cloud systems typically handle software updates, security patches, and system maintenance.

However, cloud storage has disadvantages…the biggest is cost. Many cloud providers charge monthly fees based on:

• Number of cameras

• Storage duration

• Video quality

• AI features

A small store may pay a reasonable amount, but a multi-store operator could spend thousands annually. Before purchasing a cloud-based system, ask: “How much will this system cost me over five years?”

A $2,500-system with no monthly fees may ultimately cost less than a $1,000-system requiring $200 per month in subscriptions.

How Long Should a Laundromat Keep Video Footage?

There is no universal answer, but most professional security recommendations fall into these ranges:

Basic Coverage: 7–14 days

Suitable for:

• Small stores

• Low-risk locations

• Basic monitoring

Recommended Commercial Coverage: 30 days

This is generally the sweet spot for most laundromats. Why? Because many issues are not discovered immediately. A customer may not notice missing clothing until several days later. An employee concern may not surface until a manager reviews operations. A billing dispute may require reviewing historical activity. Thirty days provides a practical balance between cost and usefulness.

High-Security Locations: 60–90 days

Recommended for:

• Multiple locations

• High-crime areas

• Large investments

• Locations with frequent incidents

At our laundromats, we would regularly “clip and save” video segments for months when we became aware of an incident, or person, which raised red flags. For instance, we had a young man who frequented one location and was always “befriending” and flirting with the elderly women and asking for their phone numbers, assisting them with carrying their laundry, etc. When we became aware of this suspicious activity, we began saving video evidence in case we needed it. We never did need it, but we always tried to be proactive to protect our customers and our business.

Data Privacy: Your Cameras Are Protecting You, But They Also Collect Information

Security cameras create an important responsibility on the part of the Laundry Operator. While your goal is protecting your business, customers also have privacy expectations. Good operators consider:

• Where cameras are installed

• What areas are recorded

• Signage Alerting Your Customers of Video Recording

• Who has access

• How footage is used and shared

• How long footage is retained

Cameras should never be placed in areas where customers reasonably expect privacy, such as bathrooms or changing areas. Access to the video should also be limited. A common mistake is giving too many people administrator access.

Employees generally should not have the ability to:

• Delete footage

• Change settings

• Add unauthorized users

• Share footage with customers

Cybersecurity: Your Camera System Can Become a Target

New, modern cameras are more than just a camera…they are computers connected to the internet. That means they can potentially become targets for hackers.

A quality security system should include:

• Strong password requirements

• Two-factor authentication

• Encrypted communication

• Regular firmware updates

• Individual user accounts

• Camera placement out of reach when possible

And it goes without saying…never leave your cameras using a default factory password. This simple mistake has caused countless security breaches. I’ll bet a load of laundry that someone reading this right now has a password on something which is “123456”!

Camera Placement Strategy — More Cameras Does Not Always Mean More Security

One of the most expensive mistakes laundromat owners make is installing cameras without a strategy. The goal is not to record every square inch of the building. The goal is to capture the areas where important events will most likely happen.

A properly designed laundromat system usually focuses on several critical zones.

1. Front Entrance

The entrance is one of the most important camera locations. You want clear footage showing:

• Every person entering

• Every person leaving

• Time stamps

• Clothing details

• Direction of travel

A camera positioned correctly at the entrance can often provide the most valuable evidence. Our entrance camera was the one that caught our local liquor store thief casing the strip mall!

2. Change Machine, ATM, Vending, Payment Areas

Money-related locations deserve special attention.

Cameras should clearly capture:

• Customers using the change machines, vending machines and the ATM

• People standing nearby these payment areas

• Suspicious activity

• Access panels for utilities and machine access

3. Folding Tables, Restroom Entries, Customer Areas

These cameras help resolve:

• Clothing theft or loss disputes

• Customer complaints

• Theft claims

• Damage to equipment by customers

• Misuse of areas by customers

4. Employee Areas

Employee entrances, offices, supply rooms, and maintenance areas should receive careful coverage. These areas protect both the owner and honest employees.

5. Parking Lot and Exterior

Exterior cameras are among the most valuable investments and many times neglected by business owners who instead focus on the interior of their store. However exterior cameras have the advantage of capturing images of people or events, before they become a problem in your store.

They can capture:

• Vehicle descriptions

• License plates

• Suspicious visitors

• After-hours activity

A good exterior system should include:

• Weather resistance

• Strong night vision

• Wide viewing angles

Laundromat Security Camera Buyer’s Checklist

Camera Quality

☐ Minimum 4MP resolution preferred
☐ Strong low-light performance
☐ Wide viewing angles
☐ Weatherproof exterior cameras
☐ Tamper-resistant design

Smart Features

☐ Person detection
☐ Motion filtering
☐ Mobile alerts
☐ Remote viewing
☐ AI analytics

Storage

☐ Minimum 30-day retention capability
☐ Reliable backup system
☐ Expandable storage
☐ Protection against recorder theft

Security

☐ Two-factor authentication
☐ Encrypted connection
☐ User permission controls
☐ Firmware updates

Installation

☐ Entrance coverage
☐ Change machine coverage
☐ Parking lot coverage
☐ Employee areas covered
☐ Cameras positioned for facial identification

Here Are Five, High-End Security Camera Systems That Meet the Requirements

The following systems represent strong, premium level choices for laundromat operators because they combine commercial reliability, good image quality, security features, and long-term value. If your particular budget does not allow this level of surveillance equipment, use these recommendations as the equipment benchmark as you source lower cost alternatives. And as a reminder…The Laundry Operator has no business, professional or personal association with these companies.

1. Ubiquiti UniFi Protect System (https://ui.com/us/en/physical-security)

Best Overall Value for Independent Laundromat Owners

Ubiquiti has become popular among small business owners because it provides professional-level features without traditional enterprise pricing.

Key Features:

✓ Local video storage
✓ No required monthly subscription
✓ Excellent mobile application
✓ AI detection options
✓ 4K camera choices
✓ Remote access
✓ Strong networking ecosystem
✓ Expandable system

Best For:
Owners who want commercial capability without ongoing cloud fees.

2. Verkada (Verkada.com)

Best Premium Enterprise Solution

Verkada is designed for organizations managing multiple locations.

Key Features:

✓ Cloud-managed system
✓ Advanced AI analytics
✓ Excellent mobile experience
✓ Centralized multi-location management
✓ Enterprise cybersecurity
✓ Automatic updates

Best For:
Large operators with multiple laundromats.

3. Eagle Eye Networks (EEN.com)

Best Cloud-Based Commercial System

Eagle Eye specializes in cloud-managed video security.

Key Features:

✓ Cloud video management
✓ Remote monitoring
✓ AI analytics
✓ Multi-location support
✓ Secure storage options
✓ Business integrations

Best For:
Operators who prefer outsourced technology management.

4. Hanwha Vision (Wisenet) (https://www.hanwhavision.com/us)

Best Camera Hardware Quality

Hanwha has a strong reputation for professional surveillance equipment.

Key Features:

✓ Excellent image sensors
✓ Superior low-light performance
✓ Commercial-grade durability
✓ AI analytics
✓ Wide camera selection
✓ NVR compatibility

Best For:
Owners who prioritize video quality.

5. Axis Communications (Axis.com)

Best Long-Term Professional Investment

Axis is one of the most respected names in commercial security.

Key Features:

✓ Exceptional reliability
✓ Advanced cybersecurity
✓ Excellent image quality
✓ Long product lifespan
✓ Professional-grade equipment

Best For:
Premium installations where reliability matters most.

Final Thoughts: Security Is Not About Watching Your Customers — It Is About Protecting Your Business

The best laundromat owners understand that security cameras are not just about catching bad actors after something happens. They are about creating a safer environment, protecting customers, protecting employees, reducing business risk, and preserving the investment they worked hard to build.

A properly designed security system becomes another tool in the laundry operator’s toolbox, just like efficient washers, clean facilities, excellent lighting, and outstanding customer service. The goal is not to create a business where customers feel watched, but to create a business where customers feel safe. And in the competitive laundromat industry, safety is one more reason customers choose to return.

Until next week, keep your machines spinning and your eye on the prize!

Travor Lutz, Editor

The Laundry Operator Newsletter

Hey folks, welcome back to another wash cycle in the digital laundromat that we affectionately call The Laundry Operator Newsletter.

If you’re reading this newsletter regularly, you are probably not just a casual laundromat patron, but instead you are someone who is thinking seriously about diving into the laundromat world as a buyer or operator. Today we’re tackling a big one: financing. The working title “Show Me The Money!” captures that excitement, but let’s be brutally honest from the jump—this isn’t some influencer-fueled fantasy fluff piece about passive income, no-money-down riches, or becoming a laundromat billionaire overnight. Owning and financing a laundromat is a real business with real risks, real work, and real numbers that have to make sense. Many people get burned because they chase the dream without doing the homework.

We’ll walk through who typically buys a laundromat, why some get lured in for the wrong reasons, what skills actually matter, the sobering reality of failure rates, why stores tank, the full menu of financing options with enough detail to get you started pursuing them, whether to buy the real estate too, and a wrap-up with cautions. This is meant to be a practical guide you can actually use, packed with enough industry insights from sources like the Coin Laundry Association, lender sites, operator forums, valuation guides, and experienced buyers. Aim to absorb it all, wring it out, and then talk to pros. Let’s get this load spinning…

Who Is the Typical First-Time Laundromat Buyer?

From what I’ve seen across industry reports, Reddit threads in r/Laundromats, BizBuySell data, and operator stories, the typical first-timer isn’t some Wall Street hotshot or tech dropout chasing unicorns. More often, it’s a hardworking person in their 30s to 50s with some savings, decent credit, and maybe a stable W-2 job or small business background. Think blue-collar folks, immigrants with entrepreneurial drive, families pooling resources, or someone who’s managed apartments or small retail.

Many have zero direct laundry experience but bring transferable skills—like mechanical aptitude from trades, customer service from retail, or cash flow management from their day job. They might be tired of the 9-5 grind and attracted to the idea of a semi-absentee business that generates daily cash. A lot are motivated by stability: laundry is a necessity, not a luxury, so in good times and bad, people need clean clothes. First-timers often target existing stores in the $200k–$1M+ range rather than building new, because starting from scratch is capital-intensive and riskier.

These buyers usually put in 10-40% down depending on the deal and lender, and plan to either run it hands-on at first or hire attendants. The successful ones treat it like a serious investment requiring ongoing attention, not a side hustle you check on once a month. I will go “postal” the next time I hear some “influencer” say “you just stop by the laundromat every week and collect your quarters”….ugh!

The Wrong Reasons People Get Attracted to Laundromats

This is where reality bites. Social media and some “gurus” paint a picture of effortless cash machines: “Passive income! Set it and forget it! Make millions while you sleep!” Yeah, right. Those pitches ignore the grind of running a real business…like a laundromat.

Common traps:

• It looks easy. Walk into a busy store on a Saturday, see quarters piling up, and think “anyone can do this.” But broken machines, vandalism, utility spikes, landlord issues (if leased), and competition don’t show up in the highlight reel. Equipment fails, customers jam things, and maintenance is constant. Read that again… “constant”. These are the things that take the fun out of your passive income fantasy.

• Influencer hype and get-rich narratives. YouTube and TikTok videos tout high success rates and huge ROIs without showing the full picture—deferred maintenance on the stores they’re selling, or the work needed to turn them around. Many buyers overpay based on inflated numbers and the fear of missing out of an “opportunity of a lifetime”.

• “No employees needed” or fully passive. Larger stores often need attendants for cleaning, customer help, and security. Absentee ownership works best after you’ve stabilized it with systems, cameras, and reliable staff—not day one.

• Underestimating capital and ops costs. New equipment is expensive (hundreds of thousands), utilities can eat 20-30%+ of revenue, and rent or property taxes add up. People assume old machines will last forever or that expenses will stay flat. Just like death and taxes, your machines will die and the utility companies will take their cut.

The honest truth: This is a cash business with steady demand, but it’s not passive or foolproof. Poor operators watch it slowly decline over years as equipment ages and customers leave. Fortunately, their failure over time may become your future opportunity.

The Five Most Valuable Skill Sets for a Successful Laundromat Operator (In Order)

Success isn’t just about location or financing—it’s execution. Based on operator accounts, CLA insights, and experienced owners, here’s my ranked list:

1. Financial Discipline and Cash Flow Management. This tops everything. You must track every dollar—daily collections, utilities as % of revenue, maintenance reserves. Successful operators live by metrics, reinvest in equipment every 5-7 years, and avoid lifestyle creep. Bad bookkeeping or ignoring rising costs leads to slow death.

2. Mechanical and Maintenance Know-How (or Ability to Manage It). Machines break constantly. Being handy with plumbing, electrical, and repairs saves thousands. If not, you need reliable techs and preventive schedules. Neglect here kills profitability fast. Some operators, like yours truly, who are not mechanically inclined must watch the numbers carefully because we are at the mercy of the repair guy (or gal).

3. Customer Service and Community Building. Friendly staff, clean facilities, add-ons like WiFi, vending, or wash-dry-fold turn one-time users into regulars. People skills differentiate you in a commodity business. This was my super power in the industry!

4. Operational Efficiency and Problem-Solving. Hiring, scheduling, marketing (Google presence, local partnerships), and adapting to competition or demographics. Monitoring turns per day, vend prices, and occupancy.

5. Long-Term Strategic Thinking. Knowing when to upgrade, expand, or exit. Learning industry best practices continuously, negotiating leases, and understanding real estate.

These skill sets aren’t innate for most first-timers, particularly for those with no prior business ownership experience, but they can be learned. Hands-on experience in the first year accelerates this.

Failure Rates and Why Laundromats Fail

Laundromats have a strong reputation with claims of ~95% survival over five years—much better than many small businesses. Restaurants, for example, often see 20-30% fail in year one and ~60% within five years. Gyms, handyman services, and janitorial businesses also have higher churn due to changing customer discretionary spending habits, competition, or labor intensity. But that 95% figure is debated and comes from industry marketing—real failure or severe underperformance happens more than advertised, especially for neglected stores. Many “survive” but limp along with declining revenue.

Why do they fail? Primarily poor management and neglect. Equipment ages (life ~10-15 years), owners defer maintenance to cut costs, machines go out of order, the place gets dirty, and customers flee to competitors. Other killers: bad location or changing demographics, insufficient parking, high utilities from inefficient machines, overpaying for the business, lack of capital for repairs/turnaround, new competition, or failing to adapt (e.g., no card systems, poor marketing). Some are “asset sales” disguised as businesses—and the buyers inherit a potential money pit.

Brutally, many failures stem from buyers who didn’t verify numbers, underestimated work, or treated it as passive. Again however, these failures could be your future success!

Ways to Finance a Laundromat Purchase

Once you’ve decided that you are all in and willing to roll up your sleeves and get your hands dirty, there are a number of avenues to purchase a laundromat include seller financing, SBA loans, credit unions, conventional bank loans, family/friends/partnerships, cash, equipment financing, private investors, home equity (HELOC), and creative options like master leases or bridge loans. And here is your wake up call…there are no true “no money down” opportunities without heavy risk on your part or desperate seller concessions.

Now for the obligatory legal disclaimer. I am not a financial guru, a CPA, attorney or money manager. I am just a laundry guy who has owned and operated number of laundromats and other businesses. I am here to point you in the right direction so that you can seek out the solutions that best suit your goals. That being said, let’s spin!

Seller Financing: Often the Best Opportunity for Buyers

Seller financing has helped thousands of laundromat transactions get across the finish line when traditional financing alone would not. Rather than receiving the entire purchase price at closing, the seller agrees to finance a portion—and occasionally all—of the purchase price by acting as the lender. The buyer makes monthly principal and interest payments directly to the seller according to a promissory note.

A common structure might involve the buyer providing a 10% to 30% cash down payment, obtaining a bank or SBA loan for 40% to 70% of the purchase price, and having the seller finance the remaining 20% to 40%. In some situations, particularly when a seller owns the business free and clear and wants recurring retirement income, seller financing may cover an even larger percentage of the transaction.

Interest rates generally reflect current market conditions and the risk of the transaction. Historically, seller notes have often fallen in the 6% to 9% range, although rates can certainly be higher or lower depending upon prevailing interest rates, the buyer’s qualifications, the seller’s motivation (or desperation), and the amount of the down payment. Repayment periods commonly range from 5 to 10 years, sometimes with a balloon payment after several years.

What is nice about Seller financing is that it creates incentives for both parties. The seller receives a predictable stream of income and can spread taxable capital gains over several years through the installment sale provisions of the Internal Revenue Code, and often earns interest that exceeds what conservative investments like CDs might provide. And the buyer benefits from easier qualification standards, reduced cash requirements, and the confidence that comes from knowing the seller has a continued financial interest in the business’s success.

Retiring owners, absentee owners, estates, and sellers dealing with health issues are often the most receptive to this approach. During negotiations, buyers should ask whether seller financing is available before discussing price, as flexibility in financing can sometimes be more valuable than a modest reduction in purchase price.

Every seller-financed transaction should be documented by an experienced business attorney using a professionally prepared purchase agreement, promissory note, security agreement, and any required UCC filings. Before closing, verify that the seller has clear ownership of the business assets, that no undisclosed liens exist against the equipment, and that the business has the legal authority to transfer all assets being sold. Thorough due diligence remains just as important with seller financing as with any bank loan.

SBA Loan Programs (Especially the SBA 7(a) Program)

For most first-time laundromat buyers, the SBA 7(a) loan program remains the most common source of acquisition financing. Contrary to popular belief, the Small Business Administration does not lend money directly. Instead, participating banks and commercial lenders make the loan while the SBA guarantees a portion of the lender’s loss if the borrower defaults. This government guarantee encourages lenders to finance businesses that might otherwise be considered too risky.

The SBA 7(a) program currently allows loans of up to $5 million. Loan proceeds may be used to purchase an existing business, acquire equipment, refinance certain existing debt, purchase owner-occupied commercial real estate, and provide working capital for the business after closing.

Loan repayment terms depend upon how the proceeds are used. Business acquisition loans are commonly amortized over 10 years, while owner-occupied commercial real estate may qualify for terms extending up to 25 years. Longer repayment periods generally reduce monthly payments and improve cash flow.

Interest rates are usually variable and are commonly based upon the Wall Street Journal Prime Rate plus an allowable lender spread, subject to SBA maximums. Although SBA loans often provide attractive terms, buyers should understand that they are not always the lowest-rate financing available. The greatest advantage is usually the lower equity requirement (down payment) combined with longer repayment periods.

Most lenders expect buyers to contribute approximately 10% to 20% of the total project cost from their own funds. In some circumstances, seller financing that remains on full standby may satisfy part of the required equity injection, although the lender must specifically approve this structure.

Lenders typically evaluate several key factors before approving a loan:

• A strong personal credit history, often with a credit score of 680 or higher, although approvals below this level are certainly possible.

• Sufficient business cash flow, usually demonstrated through a Debt Service Coverage Ratio (DSCR) of approximately 1.20 to 1.25 or greater, meaning the business generates at least 20% to 25% more cash than is needed to make annual loan payments.

• The relevant management or business experience of the buyer, or a convincing plan showing the buyer has assembled experienced advisors and managers.

• The personal financial strength and liquidity of the buyer.

• Available collateral when appropriate. While lenders generally seek available collateral, SBA rules emphasize that a loan should not be declined solely because collateral is insufficient if repayment ability is otherwise strong.

The approval process generally requires 30 to 90 days, although particularly well-prepared transactions may close more quickly. I have utilized SBA loans several times, and I can say from experience there is a lot of paper work and hoops to jump through. Buyers should expect to provide three years of business tax returns, profit-and-loss statements, balance sheets, business bank statements, equipment lists, lease information, personal tax returns, personal financial statements, detailed financial projections as well as full disclosure of all criminal charges…even misdemeanors. The process can feel a little like a full body strip search.

If you decide the SBA is the way to go, be aware that Lenders with extensive experience financing laundromats often understand industry-specific expenses such as utility costs, equipment replacement cycles, and customer volume patterns, making the underwriting process smoother. Your SBA lender agent can be a blessing or a curse. An experienced agent can make the process much smoother. Seek out SBA approved banks and lenders and vet them to find the one you will be comfortable working with through the process.

Credit Union and Conventional Bank Financing

Traditional commercial banks and credit unions continue to finance laundromat acquisitions, particularly for borrowers with established banking relationships, significant collateral, or previous business ownership experience. Unlike SBA loans, these loans are not backed by a federal guarantee, so underwriting standards are often more conservative.

Many conventional lenders finance approximately 70% to 80% of the purchase price or appraised collateral value, although the exact loan-to-value ratio varies by institution, borrower qualifications, and the strength of the business. Repayment periods are often shorter than SBA financing, which can result in higher monthly payments despite the bank or credit union’s competitive interest rates.

An existing relationship with a community bank or local credit union can sometimes produce more favorable pricing, faster decisions, or greater flexibility than a national lender. Commercial loan officers who know your financial history are often more willing to structure creative solutions than lenders reviewing a new customer for the first time. Buyers should obtain proposals from several lenders rather than accepting the first offer. In addition to interest rates, compare origination fees, required reserves, prepayment penalties, collateral requirements, amortization schedules, and any balloon payment provisions.

Several specialty commercial finance companies have extensive experience with laundromat lending because they understand equipment values, water consumption, utility expenses, and the unique cash flow characteristics of self-service laundry operations. Their familiarity with the industry often leads to a more efficient underwriting process.

Family, Friends, and Equity Partnerships

Borrowing from family members or close friends can provide financing when conventional lending is unavailable or when additional capital is needed for the required down payment. Because these arrangements are based upon personal relationships rather than institutional underwriting, the repayment terms may be considerably more flexible.

That flexibility, however, should never replace proper documentation. Every loan should include a professionally prepared promissory note, repayment schedule, stated interest rate, security agreement if applicable, and a written explanation of what happens if payments are late or the business is sold.

Equity partnerships offer another avenue for raising capital. Instead of making a loan, the investor becomes a partial owner of the laundromat. In addition to capital, an experienced partner may contribute operational knowledge, accounting expertise, marketing skills, or industry contacts. Before entering any partnership, both parties should agree upon ownership percentages, decision-making authority, profit distributions, responsibilities, buyout provisions, and exit strategies. These matters should be documented in a comprehensive operating agreement or partnership agreement prepared by qualified legal counsel. Remember what a wise old attorney drilled in my head for years… “if it ain’t in writing, it didn’t happen”. Every verbal agreement needs to be put in writing….even with Mom & Dad. Business failures have permanently damaged countless family relationships. Clear expectations established before money changes hands are far less expensive than disputes after problems arise.

Cash Purchase

Purchasing a laundromat with cash eliminates monthly loan payments, reduces closing complexity, and often strengthens a buyer’s negotiating position. Sellers frequently prefer cash buyers because transactions typically close faster and involve fewer financing contingencies. We have been blessed on several occasions to purchase businesses in all cash deals. Owning the business debt-free immediately improves monthly cash flow and allows profits to be reinvested into new equipment, remodeling, marketing, or additional acquisitions rather than loan payments…and it allows you to sleep better at night.

The primary disadvantage is the opportunity cost of tying up substantial capital in a single investment. Even financially strong buyers should maintain adequate reserves for unexpected equipment failures, utility deposits, leasehold improvements, and seasonal fluctuations in revenue. A fully depleted bank account immediately after closing has caused more than one otherwise promising acquisition to struggle during its first year.

Equipment Financing and Equipment Leasing

Equipment financing is frequently used after purchasing a laundromat to replace aging washers, dryers, water heaters, payment systems, or ancillary equipment. Because commercial laundry equipment serves as collateral, lenders may offer attractive financing terms with relatively modest down payment requirements.

Loan terms generally correspond to the expected useful life of the equipment, often ranging from five to seven years, although longer terms may be available for larger projects. Smaller financing requests may qualify for streamlined approvals requiring only a credit application and limited financial documentation.

Equipment leasing offers another alternative, allowing operators to preserve cash while acquiring newer equipment. Some leases include purchase options at the end of the lease term, while others require the equipment to be returned. Buyers should compare the total long-term cost of leasing versus purchasing, including maintenance responsibilities and end-of-term obligations.

Other Financing Alternatives

Creative financing occasionally fills gaps when conventional lending is unavailable, but each option deserves careful evaluation.

A Home Equity Line of Credit (HELOC) may provide relatively inexpensive capital because it is secured by the borrower’s residence….the buyer’s personal home becomes collateral for the business loan, significantly increasing personal financial risk if the business under-performs. But remember…you are literally putting your home on the line. While I have used HELOCs for business purposes, it is a risk that needs to be fully vetted with family or anyone that would be negatively impacted if your business fails.

Private investors (often known as Hard Money Lenders – think The Sopranos) may provide capital in exchange for interest payments or ownership equity. Because these investments carry greater risk than bank loans, investors generally expect correspondingly higher returns and perhaps greater involvement in major business decisions.

Bridge loans are designed for short-term financing when a buyer needs to close quickly before obtaining permanent financing. These are essentially short-term loans, and although bridge financing can save an attractive transaction by allowing you to get financing quickly, interest rates are usually substantially higher than long-term commercial loans, making prompt refinancing essential.

A master lease or lease-option arrangement allows a buyer to operate the laundromat before purchasing it. Part of the lease payment may be credited toward the eventual purchase price, reducing the initial capital requirement. While these structures can be valuable when immediate financing is unavailable, they require careful legal review because ownership does not transfer until the purchase option is exercised. You will essentially be “leasing” the laundromat and you may be restricted as to what changes, improvements or operational changes that you want to make. Definitely get your attorney involved in drafting this type of agreement.

Some entrepreneurs promote credit card stacking, in which multiple business credit cards are used to generate startup capital. We used this method once when purchasing a laundromat…we used the cash advance feature to finance the laundromat and then had the laundromat pay back the credit card “loan”. While this strategy can provide quick access to funds, it usually carries significantly higher interest rates, variable terms, and the risk of damaging personal credit if the business experiences early cash flow problems. Most experienced commercial lenders consider this a financing method of last resort rather than a preferred strategy.

Often overlooked by investors are Rollover for Business Startups (ROBS). A properly structured ROBS arrangement allows qualified retirement funds from a 401(k) or traditional IRA to be invested into a new C-corporation without triggering early withdrawal penalties or immediate income taxes. Many laundromat buyers use a ROBS either as their required SBA down payment or to purchase an entire laundromat without borrowing.

While this can eliminate monthly debt service, ROBS transactions are heavily regulated by both the IRS and the Department of Labor. They require ongoing compliance, annual administration, and careful legal and tax guidance. If the business fails, the owner’s retirement savings are also at risk. For buyers with substantial retirement assets and limited liquid cash, however, a properly administered ROBS can be an effective financing tool and is commonly paired with SBA 7(a) financing. Again, seek out professional assistance if you explore this option.

Bottom of Form

If the Real Estate Is Also for Sale, Should You Buy It?

I’ve often been asked, should I own the actual space that my laundromat occupies? The answer is usually YES if the space is available for purchase. Owning the space eliminates rent hikes, builds equity, offers tax benefits (depreciation), and most importantly….control. Many of my frustrations over the years were landlord related…and had I owned the laundromat building, I would have invested far more into the infrastructure of the facility and made the businesses more successful.

Wrap-Up: Proceed with Eyes Wide Open

Financing a laundromat can be a solid path to building wealth if you treat it as a real business—not a lottery ticket. Do the math, verify everything, seek out skilled professionals to help you, build operator skills, and plan for the work. Success rates in this business beat many industries, but failures come from neglect and poor decisions. This isn’t fluffy advice; it’s a call to diligence.

Seek legal counsel for contracts, accountants for financials/taxes, and mentors or brokers experienced in laundromats. And I humbly recommend that you keep reading—subscribe to and absorb every issue of The Laundry Operator Newsletter, join operator groups, watch TikTok “laundromat trillionaire” gurus, visit stores, and develop relationships with lenders early. Due diligence is your best friend. If the numbers work and you’re ready for the realities, it can be rewarding.

Your friend in the laundry business,

Travor Lutz, Editor

The Laundry Operator Newsletter

Greetings Fellow Laundry Operators and those of you that may be dreaming of the day you are counting quarters and smelling the sweet success of laundry detergent!

Today we delve into the Top 10 Dirty Little Secrets that I wished I had known when I bought my first laundromat. As regular readers know, I started researching laundromat investments back in the early 1990s. I was managing large portfolios of multifamily real-estate, most of which had on-site coin operated laundry facilities. Perhaps it was a case of “the grass is greener on the other side of the fence”, but the ease of simply managing the laundry facilities looked a whole lot more appealing than managing the thousands of tenants I was responsible for. It took two decades of tire kicking and research before I bought my first store, and got out of real-estate.

Like me, many people enter the laundromat business because they see the appeal of a business that provides an essential service, operates with predictable demand, and can generate strong cash flow when managed correctly. What many new owners quickly discover, however, is that there is a big difference between owning a laundromat and simply owning a building full of washers and dryers.

Every experienced operator has a story about something that surprised them during their first year. Some surprises are funny, some are frustrating, and some can be expensive lessons if you are not prepared. The good news is that most of these surprises are predictable once you know what other owners have already experienced.

Here are the Top Ten 10 Surprises that new laundromat owners discover and some practical ways to prepare before those surprises become problems.

Surprise #1: You Didn’t Buy a Passive Investment—You Bought an Operating Business

One of the biggest surprises new laundromat owners discover is that the business does not simply run itself once the keys are handed over. You won’t just be stopping by once a week to pick up your quarters. Unfortunately, many sellers and business brokers perpetuate this myth to make the sale. And while modern equipment, card systems, cameras, and remote monitoring have made some laundromats easier to manage, successful stores (of any kind!) still require attention, decisions, and consistent oversight.

The machines may be doing the washing, but the owner is still responsible for keeping the customer experience clean, safe, and reliable. Trash needs to be emptied, bathrooms need attention, machines need maintenance, customers need help, supplies need ordering, and unexpected problems need solving. Yes, you can hire someone to do all these duties, but without skin in the game, they are an employee that needs to be supervised and WILL NEVER treat the business the way you would if you were managing it day to day. The person that will determine your laundromat’s success or failure is…YOU.

The best way to prepare for this surprise is to go into ownership with the mindset of becoming an operator, not just an investor. Build systems, create checklists, schedule regular inspections, and understand that the first months after purchase are when you learn what the business truly needs. The owners who succeed are usually the ones who spend time learning and supervising the business instead of assuming the business will take care of itself.

Surprise #2: Equipment Breakdowns Always Seem to Happen at the Worst Possible Time

Almost every laundromat owner eventually learns the same lesson: machines do not care about your schedule, your budget, or your weekend plans. The single worst part of being a Laundry Operator was machine malfunctions. I hate when something breaks. I take it personally. I saw the machine’s failure as my failure.

A washer can and most often will fail on the busiest Sunday afternoon. A dryer can stop heating right before a holiday weekend and always when a new customer has a full load. And a drain valve will fail when you are already dealing with a dozen other problems. I may one day do a horror-story edition of The Laundry Operator Newsletter. There have been days that I would have personally burned the business to the ground had I not been adverse to jail time.

Many new owners, including myself, are surprised by how quickly repair expenses can add up, especially when they purchase older equipment because the lower price looked attractive during the acquisition process. Our first laundromat had machines that were 15+ years old, and our second laundromat had machines that the Smithsonian History Museum would love to have! The best preparation is knowing the condition of every machine before you buy. Have equipment inspected, review repair records, understand the age of each machine, and budget for ongoing maintenance.

A successful laundromat owner does not ask, “How do I avoid all repairs?” because that is impossible. The better question is, “How do I minimize downtime and respond quickly when repairs are needed?” so that my customers are not inconvenienced.

Surprise #3: Customers Do Not Always Follow Simple Instructions & Signage

New owners often believe that if they put up a sign explaining a rule, customers will naturally follow it. Many quickly discover that signs are helpful, but they are not magical.

We spent a considerable amount of time developing professional, large and visually appealing signage to assist our customers. We quickly discovered that most customers never see them. The classic example was in one of our stores, the office was not very visible, and we wanted to make sure that any customer that needed us could find us. We installed a relatively huge sign near the ceiling, with a large arrow pointing directly at the office. Did this prevent new customers from entering the store and wandering around looking for us? Of course not. Our other signage always covered common occurrences. Customers will overload machines, leave clothes behind, put items in dryers that should never see heat, use too much detergent, and occasionally do things that leave owners wondering, “How did someone think this was a good idea?” Most of these signs were never read, and some were read by the customer after we pointed the sign out to them as we watched their half bottle of Tide billowing out the vents in the back of our 60 lb. machine! The reality is that laundromats serve people from all backgrounds, and not everyone has the same understanding of laundry equipment, store expectations or how to do laundry.

The best preparation is to focus less on signs and more on systems. Make rules simple, provide friendly reminders, use cameras, maintain good lighting, and create an environment where customers understand that the store is cared for. A clean, well-managed store naturally encourages better customer behavior.

Surprise #4: Finding Reliable Employees Can Be Harder Than Fixing Machines

Many new owners expect equipment problems to be their biggest headache. Instead, they discover that finding dependable employees can become one of their greatest challenges.

A machine can often be repaired with the right part and a good technician. Employees require hiring, training, communication, motivation, and accountability…and often termination.

Owners frequently discover that a great attendant can increase customer loyalty, improve cleanliness, reduce problems, and make the owner’s life much easier. Unfortunately, unreliable staffing can create stress quickly and lead to lost business and poor social media reviews. Your odds in many markets of finding a “good” attendant are about 1 in 10.

The best preparation is to vet every candidate, check references, and run background checks. If you find any dishonesty (lies, exaggerations, date discrepancies) in their application…move on to the next candidate. Don’t settle for a warm body…and I guarantee you will one day consider doing so…but instead continue to look for that one person who you will be proud to say “They work for me”. Once you hire that person, develop cleaning checklists, opening and closing procedures, customer service standards, and simple training materials and review these with your new employee over and over until you see they get it. Then, “inspect what you expect”. Your employee should be able to complete, to your satisfaction, your checklist and maintain the store in the manner that you wish.

The goal is not just to find someone willing to work. The goal is to build a team member who helps protect the reputation of your business and can consistently manage the business as if you are there with them every day. And as I like to say, when you find that employee that is “golden”, treat them and compensate them accordingly. If you don’t, someone else will.

Surprise #5: Personally Test Every Machine Before Buying

One of the most expensive lessons new laundromat buyers learn is that a machine looking good on the outside does not guarantee that it works properly on the inside. Our first laundromat had machines that were shinny on the outside, clean on the inside, but some had problems. A washer may start but not extract water correctly. A dryer may turn on but struggle to produce heat. A payment system may work occasionally but create daily customer frustration.

During due diligence, every machine should be tested through a complete cycle whenever possible. Buyers should inspect the equipment condition, review service records, ask about repair history, and understand replacement costs. On one occasion, we hired a very experienced tech to inspect each machine and provide us with a deficiency list for each, and the approximate cost to correct its problems. The excitement of buying a laundromat can sometimes cause people to overlook small details, but those details become very important after closing.

The best operators slow down during the buying process because every machine represents thousands of dollars in potential revenue and repair costs. During another acquisition, we made sure that the sale agreement had verbiage that protected us for 30 days after the sale. If equipment failed, or needed repair during that period, the seller was on the hook to pay for the repairs. This ended up saving us hundreds of dollars in repairs within just two weeks!

Surprise #6: Wash-Dry-Fold Can Become the Hidden Profit Center

Many new owners purchase laundromats focused primarily on coin or card-operated self-service revenue. Then they discover something unexpected: many customers are willing to pay a premium for convenience. Wash-dry-fold services can create additional revenue, increase customer loyalty, and help a store stand apart from competitors. Busy families, professionals, seniors, and businesses often value saving time more than saving a few dollars. The challenge is that wash-dry-fold is not simply adding another service. It requires proper pricing, quality control, workflow management, and dependable employees.

The best preparation is to study your market before launching the service. Determine who your customers are, what competitors charge, and whether you have the space and staffing to provide excellent service. Additionally, are you mentally prepared for this extra volume of work? Those looking for a “passive” laundromat investment would be better off to forego offering this service.

That being said, when done correctly, wash-dry-fold can transform a traditional laundromat into a much higher-value service business.

Surprise #7: Cheap Equipment Can Become an Expensive Decision

One of the most tempting mistakes for new owners is believing that buying used or refurbished equipment automatically creates a better investment. I for one always try to avoid debt, and new machines can be a drag on the bottom line. We often replaced our oldest equipment with new, refurbished machines. But, while older refurbished machines may have a lower purchase price, they sometimes come with hidden costs: more repairs, more downtime, higher water usage, higher energy consumption, and frustrated customers. A machine that is constantly out of order is not simply a repair expense. It is lost income and a damaged customer experience.

The best preparation is to evaluate equipment based on total cost of ownership rather than just purchase price. Consider reliability, efficiency, parts availability, service support, and expected remaining life. When purchasing refurbished equipment, always ask for in writing what was replaced on the machine you are buying. This saved us a number of times when a machine arrived and had parts listed as replaced that had obviously not been. And by knowing what had been replaced, if that part failed during the warranty period, we were able to get it replaced at no cost. As always, get any warranty information in writing, and before buying equipment, check the reputation of the refurbisher to ensure this is someone you can trust when there is a problem.

Surprise #8: Security Is About Creating a Safe Environment, Not Just Catching Problems

Many new owners think of security cameras as a way to catch someone after something goes wrong. Experienced operators understand that security is primarily about prevention.

A clean, bright, visible store with good cameras, proper lighting, and organized operations sends a message that the business is actively managed. Security concerns can include theft, vandalism, customer conflicts, employee issues, and liability concerns. Cameras are valuable, but they work best as part of a larger safety strategy.

The best preparation is to think like a customer. Would someone feel comfortable entering your store late at night? Would an employee feel safe working there alone? Signage such as “Smile, You Are On Camera” near your visible security cameras are an effective deterrent. At one store, the first thing we did was remove paper signage from the windows so that natural light came in and our customers could see outside, and customers coming in could see where they were walking into.

A safe environment protects your customers, employees, equipment, and reputation and will make your laundromat a place they feel comfortable visiting.

Surprise #9: A Busy Road Does Not Guarantee a Successful Laundromat

Many new investors are attracted to locations because they have high traffic counts or sit on a busy street. Later, they discover that visibility alone does not create a profitable laundromat. The surrounding neighborhood demographics matters far more than the number of cars or feet passing by.

Successful laundromats typically depend on factors such as renter population, apartment density, household income, parking availability, competition, demographics, and customer convenience.

The best preparation is to study the neighborhood carefully before purchasing. Visit the laundromat at different times of day, talk with nearby residents and businesses, analyze competitors, and understand who your future customers will be. Each laundromat that I considered for purchase, we would “stake” out the store and just watch. Who were the customers, how long were they staying, were non-customers hanging around, etc. You will be amazed as to how your impression will be changed (good or bad) after a few hours of customer observation.

A great location is not simply where people drive by. It is where the right customers need your service.

Surprise #10: The Small Daily Problems Become the Big Daily Time Consumers

Many new owners are prepared for major issues but are surprised by how much time small problems require.

A broken soap dispenser, overflowing trash can, dirty folding table, jammed coin changer, empty paper towels, or customer question may seem insignificant individually. However, these small issues happen repeatedly and can quickly consume an owner’s attention. The best laundromats are successful because hundreds of small details are handled consistently and solutions are quickly found to eliminate many of the reoccurring problems. Operator’s run into problems when they take too long to address little problems, which continue to pile up and take the fun, and the profit, out of your operation.

The best preparation is creating routines. Develop daily inspection lists, assign responsibilities, and establish standards that everyone follows. Customers may not notice every improvement you make or most of the problems you solved, but they will notice when those small details are ignored.

Final Thoughts: The Best Owners Learn From Those Who Came Before Them

Every successful laundromat owner has faced surprises...and you will too. The difference between struggling operators and successful operators is not trying to avoid every problem—it is preparing for the problems that are predictable and quickly finding solutions for reoccurring issues.

The laundromat business rewards owners who pay attention to details, understand their customers, maintain their equipment, and continuously improve their operations. The machines may wash the clothes, but great operators build the business.

Until next week, keep your eyes on your operation and be prepared to be surprised!

Travor Lutz, Editor

The Laundry Operator

Greetings Fellow Laundry Operators!

If you’ve been in the Laundromat biz for any length of time, or any retail or brick and mortar business, you know that you will occasionally encounter an unhappy customer. Your business may not have been the initial cause of their “unhappiness”, but here you are…taking the brunt of their wrath.

Every laundromat operator eventually deals with an unhappy customer. A washer eats a customer’s money… a dryer decides to do a cold spin… someone leaves clothes behind and they are now missing…a customer believes their laundry was damaged… an employee has a bad interaction with a customer. The list of customer triggering events is unlimited and unfortunately, complaints are part of operating a service business.

The question is not whether problems will happen or when they will occur…the question is: What does your customer experience after the problem happens?

Many operators view complaints as a nuisance…something to be avoided or ignored. Successful operators view them differently: complaints are opportunities to prove that your business is better than the competitor around the corner.

A customer who has a problem and receives a thoughtful, professional response will often become more loyal than a customer who never had a problem at all. I have seen this play out time and time again…the customer who for a few minutes hates your business, becomes a raving, dedicated fan after their concern is handled correctly.

I first adopted my customer complaint approach in 1993 after reading the book “Raving Fans: A Revolutionary Approach to Customer Service” by Ken Blanchard and Sheldon Bowles. This book gave me a fresh outlook on customer service and a method to turn complaints into compliments. (You can find Raving Fans on Ebay for under five bucks…it’s worth the read and will help you in every area of business).

Why Complaint Handling Matters

Customer acquisition is expensive. Running ads, online marketing, social media promotions…they all add up to time and money. Every time you lose a customer, it costs you money and time to replace them. Keeping existing customers however is usually far more profitable than constantly chasing new ones. Your machines may be what bring customers through the door, but your service is what keeps them coming back.

Research from customer experience studies consistently show that customers who have positive interactions with a business are more likely to return and to recommend the business to others, and to forgive occasional mistakes.

On the other hand, negative experiences spread quickly. Back in the day…your unhappy customer could tell a couple of friends of how awful they were treated at your business during the next month or so. Today, customers can leave a Google review, post on Facebook, or tell hundreds of people about a bad experience within minutes. The impact is real…and these complaints can have a devastating impact on your business.

For a local laundromat, reputation is everything.

A customer who says:

“The dryer didn’t work, but the owner immediately refunded me and apologized” creates a completely different impression than:

“The machine took my money and I had to take my clothes home wet because I was out of quarters”

Both customers had the same problem. The difference was how the business responded.

The Golden Rule of Customer Service

The foundation of great service is simple: Treat people the way you would want to be treated.

Put yourself in the customer’s position. If you just spent two hours washing your family’s clothes and something goes wrong, your customer is not just dealing with a machine problem, they are dealing with the frustration and inconvenience of the problem and lost time, not to mention those family members impacted downstream!

A simple statement like, “I understand why you’re frustrated. Let’s see what happened and figure out the best solution” can immediately change the tone of a difficult conversation.

The Customer Is Not Always Right — But They Are Always the Customer

The old saying “the customer is always right” is not completely accurate. Customers can misunderstand or ignore policies. They can misuse equipment. They can make unreasonable demands.

However, arguing with a customer rarely creates a positive outcome. The goal is not to prove who is right or wrong. The goal is to solve the problem while protecting your business. Even when the problem was caused by the customer’s error, a professional operator can say:

“I understand your concern. Here is what happened, and here is what I can do to help.” You can maintain boundaries while still treating people with dignity.

Over the decades, I have managed hundreds of employees, thousands and thousands of customers across multiple industries in over 15 states across the country. I found that by training my employees to follow this simple, Five-Step Complaint Resolution Formula, we could resolve most customer complaints in a win-win manner.

Five-Step Complaint Resolution Formula

1. Listen First

Do not interrupt the customer. A common operator mistake is to try and “fix” the problem quickly without letting the customer fully explain why they are angry. Let them fully explain their concern and let them vent. Many upset customers become calmer simply because they feel heard and got to tell their story. Many customers will remain angry, even if you fix their problem immediately, because you did not give them the opportunity to be heard and to “explain” to you what made them angry. Give them the time to vent, and ask questions along the way:

· What happened?

· Which machine were you using?

· When did the problem occur?

· What would be a fair solution…how can I make this right?

Gather facts before making assumptions. Even if you immediately determine that this problem was a customer’s user error…listen to the customer and let them get their frustration out.

2. Acknowledge the Frustration

You do not have to admit fault before understanding the situation. There is a big difference between sayings to the customer:

“That’s not our fault.”

and:

“I understand why that would be frustrating. I too would be angry in this situation”

The second response lowers tension and keeps communication productive. It shows that you understand them, and you now have a common bond.

3. Always Apologize When Appropriate

A simple apology goes a long way. Far too few people apologize when they know they are in the wrong. Our society has determined that an apology is a sign of weakness….which is flat out wrong. An apology is a sign of humility and reflects a morally conscience attitude. A simple: “I’m sorry you had this experience.” or “I feel bad that this happened to you” does not automatically mean:

“My business is responsible for everything that happened.”

It means you recognize the customer’s frustration. It tells the customer that you understand their anger, and you care.

4. Offer a Reasonable Solution

Your solution should at least match the severity of the problem. Sometimes the solution the customer is looking for is a simple acknowledgement that their concern is legitimate and that you understand. Sometimes the resolution requires more. My goal was to always provide a resolution that exceeded the customers’ expectations.

Examples:

Lost Money in a Machine

Possible solution:

· Refund the lost coins and give them a free wash/dry during their next visit.

· Check the machine immediately and let the customer know that you did so because of their concern

Wash & Fold Mistake

Possible solution:

· Apologize immediately when you know it was your business’s error.

· Correct the mistake if possible and offer a free service.

· Offer appropriate compensation in the case of damaged items.

· Review procedures with employees and let the customer know that you have taken steps to ensure this does not happen again to them, or any other customers.

Equipment Failure

Possible solution:

· Refund the cycle and give them a free wash/dry that day or in the future.

· Place an “Out of Order” sign immediately and thank the customer for letting you know of the problem.

· Schedule the repair quickly and let the customer know that you took immediate action.

The cost of a small refund is almost always less than the cost of losing a customer. That $3.00 refund that you did not give to an unhappy customer may cost you hundreds of dollars going forward as they continue to tell their story on social media.

5. Follow Up Contact

A follow-up by phone or in person is one of the most overlooked tools in customer service. The follow up tells the customer that you took their complaint seriously and that you cared if they were satisfied with your service.

A simple phone call:

“I wanted to make sure everything worked out after your last visit.”

Your call will surprise the formerly disgruntled customer and turn them into a loyal customer.

Real-World Laundromat Complaint Scenarios.

As you read this, I guarantee you these scenarios are playing out in real time in Laundromats across the US!

Scenario #1: A Customer Claims Your Washer Damaged Their Clothes

The Wrong Response:

“You probably overloaded the machine. That’s not our problem. You should have read the signs.”

Even if the customer did overload the machine, this response guarantees conflict…it guarantees they are going to share this story with someone else, who may then never enter your laundromat.

The Better Response:

“I’m sorry this happened. I know how frustrating it is when something goes wrong with your laundry. Let’s look at what happened and see what we can do.”

Inspect the situation. Gather information. Document the complaint. Remain professional, sympathetic and aware of the fact that you are at that moment either ending a customer relationship, or cementing a new fan of your business.

Scenario #2: A Wash & Fold Customer Is Unhappy

Wash & fold customers often have higher expectations because they are paying for a service, not just using your equipment. They are looking to you to provide a service that they don’t like to do, don’t have time to do, or are not good at…or all of the above!

If your team makes a mistake:

· Take ownership of the mistake. Don’t make excuses. Mistakes happen…resolve them and move on.

· Apologize quickly. The longer you delay in apologizing, the less likely the customer will believe the apology is sincere.

· Correct the issue. Again, the longer you take to take action, the less credit you will get when the issue is resolved.

· Review the process internally with your team and share with the customer that you did so.

Customers are always more forgiving of mistakes by an apologetic business owner than they are of those that refuse to take responsibility.

Scenario #3: Customers Complaints About Prices

Everyone has a price in their head as to what goods or services are worth to them. Many times this mental price sticker is not connected to reality and your prices may cause sticker shock which results in a complaint.

When customers complain about pricing, avoid becoming defensive.

Instead of:

“Our prices are what they are.”

try:

“I understand… our costs have increased. We work hard to provide clean equipment, reliable machines, and a safe environment for our customers.”

Customers are not only paying for a wash cycle. They are paying for convenience, reliability, cleanliness, and trust.

When Should You Offer Compensation?

Some operators will simply throw money at a problem or complaint hoping this will fix the issue. But as previously discussed, often the customer just wants to be understood. Therefore compensation should be used strategically in conjunction with hearing and sympathizing with the customer.

Good reasons to monetarily compensate an unhappy customer include:

· Your equipment failed

· Your employee made a mistake

· The customer experienced significant inconvenience

Examples:

· Refund a lost wash

· Offer a free future cycle

· Provide a small discount

· Replace a service when appropriate

Avoid creating a culture where customers learn that complaining always results in free services or reimbursement. Your goal is to build goodwill, not entitlement.

When Should You Fire a Customer?

Not every customer is worth keeping. A small percentage of customers can consume enormous amounts of time and energy. One of the most liberating “firings” I ever had was when I terminated one of my company’s largest clients. They were awful to work with, they made our employees unhappy, and they sucked up a lot of my time. The elimination of this one client allowed us to better serve the other clients that we enjoyed working with!

Consider ending the relationship with customers who:

· Threaten employees or other customers

· Repeatedly damage property

· Refuse to follow reasonable rules

· Abuse you or your staff in word or deed

· Abuse refund policies

· Create an unsafe environment

Protecting your employees and your good customers is part of running a successful business. A great operator knows when to serve, when to solve, and when to say enough is enough!

Train Your Team Before Problems Happen

The best time to decide how complaints should be handled is before the complaint happens. If you are developing your complaint guidelines on the fly, you have already failed.

Create simple guidelines, in writing, for your employees:

· Stay calm

· Never argue

· Listen first

· Be respectful

· Document unusual problems

· Ask management when you are unsure

Your employees are the face of your business. A great employee can save a customer relationship. A poor interaction can cost you a customer forever.

Final Thoughts: Treat Complaints As Business Intelligence

I have found that every complaint contains information that unless the customer had complained, you may have never known. Customers are telling you where your operation has weaknesses. They are literally telling you “How To” make your business better.

A broken machine may reveal a maintenance issue. A pricing complaint may reveal a communication problem or a competitive disadvantage. A cleanliness complaint may reveal a staffing problem. Do not just solve the complaint. Learn from it. Act on it. Use it as a tool to perfect your operations.

The best laundromats are not perfect because nothing ever goes wrong. They are successful because when something does go wrong, they handle it better than everyone else.

Remember:

Customers may forget a machine failure. They may forget a mistake. But they rarely forget how you treated them afterward.

Until next week, let’s keep those machines spinning and those customers smiling and build a laundromat that people are proud to visit…and that you are proud to own!

Your Friend In the Laundry Business,

Travor Lutz, Editor

The Laundry Operator Newsletter

Greetings fellow laundry pros, it’s your friendly neighborhood Laundry Guy who is feeling a little dirty and ready to dive into the bubbly world of laundry detergents. Yes, we are going to come clean today as we cast off the dirt and grime and wring out the cleaning options.

With hundreds of laundry detergent options crowding store shelves, how does the average consumer—or busy laundromat operator—figure out which ones actually deliver clean clothes without draining the wallet or polluting the environment. Today we will break it down with real science, verified stats, and practical advice you can use tomorrow. This is a deep dive, so gulp down your last slug of espresso and let’s clean this mess up!

The Science of Clean: How Detergents Actually Work (No Magic, Just Micelles)

Here is the science of laundry….water alone is a lousy cleaner for most soils because oil and grease don’t mix with it. That’s where surfactants—the true workhorses of any detergent—step in. These amphiphilic molecules have a hydrophilic (water-loving) head and a hydrophobic (water-fearing, oil-loving) tail. When added to wash water, surfacants reduce surface tension, allowing water to penetrate fabrics better. The tails grab onto dirt, oils, and grease, while the heads pull them into the water, forming spherical structures called micelles that trap the soil and keep it suspended so it rinses away instead of redepositing.

Think of it like a molecular escort service for grime. Anionic surfactants (like alkyl sulfates or linear alkylbenzene sulfonates) excel at general cleaning and are common in heavy-duty formulas. Non-ionic surfactants handle oily soils particularly well and work across a wider temperature range. This is why some cheap detergents fail—they skimp on surfactant quality or balance, leaving you with dingy results or excessive suds that gum up machines.

Builders and Enzymes: The Unsung Heroes of Modern Detergents

Builders (like zeolites, citrates, or polycarboxylates in today’s phosphate-free formulas) are the water-softening specialists that keep your detergent performing at its peak. Hard water is loaded with dissolved calcium and magnesium ions that love to team up with surfactants, forming an insoluble “scum” that sticks to fabrics, leaves that dull gray film on clothes, and dramatically reduces cleaning power. Builders act like molecular bouncers—they grab onto those minerals, tie them up in stable complexes, and prevent them from interfering with the surfactants. The result? Surfactants stay free to do their job of lifting dirt and oils instead of being neutralized. In hard-water regions (common across much of the U.S.), a high-quality builder system can boost overall cleaning effectiveness by 20-50% or more, depending on water hardness levels, turning a mediocre wash into noticeably brighter, fresher results. Without them, you’d need far more detergent—or hotter water—to get the same outcome, wasting money and energy. Modern phosphate-free builders strike a smart balance between performance and environmental responsibility, which is why they’ve become standard in quality formulas.

Enzymes bring the precision strike force to your laundry arsenal. These are specialized proteins (biological catalysts) that speed up the breakdown of specific stain types without being consumed in the process. Proteases zero in on protein-based messes like blood, grass, sweat, and bodily soils, chopping long protein chains into smaller, water-soluble fragments. Amylases target starchy residues from foods, including gravy, pasta, or baby food. Lipases are the fat fighters, emulsifying oils, sebum, salad dressing, and greasy food stains. Cellulases work on the fabric itself—gently nibbling away tiny fuzz balls and pills on cotton blends while helping release trapped dirt, leaving colors brighter and surfaces smoother over time.

Because enzymes work at the molecular level, they remain highly effective even in cold or warm water (typically 60–90°F), which is fantastic for energy savings and protecting delicate fabrics or colors. This is exactly why “bio” or enzyme-boosted detergents often outperform basic surfactant-only formulas on tough, set-in stains. The trade-off? Some people with very sensitive skin may experience mild irritation from residual enzymes, so non-bio (enzyme-free) versions are widely available for those households. As a laundry operator, I always recommended enzyme-rich options for most laundromat and wash-and-fold operations—they deliver superior results with less overall chemistry.

Why do some detergents flop? Poor surfactant blends, insufficient enzymes, weak builders in hard water, or formulas overloaded with fillers that do nothing but add bulk and cost. High-sudsing formulas in HE (high-efficiency) machines, which are common in laundromats, create problems—foam overflows sensors, reduces mechanical action, and leaves residue.

Why Suds Don’t Actually Clean: Marketing vs. Science

Here’s a quick truth bomb for your customers (and a reminder for operators): big, bubbly suds are mostly marketing, not science. The real cleaning happens at the microscopic level through surfactants forming micelles that lift and trap dirt and oils. Visible foam is simply air whipped into the water by those surfactants—it doesn’t do the heavy lifting. In fact, excessive suds can actually hurt performance, especially in HE commercial washers. Too many bubbles cushion the mechanical action of the drum, reduce water flow through fabrics, and leave behind residue that attracts more soil over time. Many premium detergents are intentionally low-sudsing for exactly this reason. So next time you see a mountain of foam in a top-loader, remember: it’s theater for your eyes, not extra power for your clothes. The best cleaners often produce very little visible suds—and that’s exactly how you know they’re working smarter, not frothier.

Humor break: Ever seen a customer dump a whole jug of regular detergent into a front-loader and then 5 minutes later suds coming out the washer vents and the laundromat drain covers? I remember once looking out into my parking lot and seeing suds coming up out of the manhole cover! It was like having a suds party that the machine and I definitely didn’t RSVP for. Cleanup is not fun.

Effectiveness Across Fabrics: One Size Doesn’t Fit All

Different fabrics demand different approaches. Most customers don’t know this…they simply throw a load of mixed clothing types into the 60 lb. machine, dump in some soap they got at the local dollar store, plunk in some quarters and let’r rip. However our knowledgeable customers, those that want to maintain their clothes for years, know that:

• Cotton and linen: Are durable and absorbent; they handle robust detergents with enzymes and builders well. These natural fibers benefit from alkaline conditions that enhance soil removal.

• Polyester and synthetics: These fabrics trap oils and odors easily. Enzyme-rich formulas, especially with lipases, excel here. Avoid overuse of harsh alkalis that can set stains.

• Wool, silk, and delicates: These are Protein-based fibers that hate strong enzymes (proteases can “digest” them) and high pH. Educated customers use mild, pH-neutral, enzyme-free or low-enzyme detergents in cold water to prevent shrinkage, felting, or color loss.

In addition to the chemical composition of the detergent, commercial washers in laundromats often run hotter and with more mechanical action, amplifying differences. A top performer on cotton towels might be too aggressive for a customer’s delicate blouse.

Safety and Health Considerations: Reading the Fine (Chemical) Print

Most modern detergents are safer than old phosphate-heavy versions, but concerns remain. Many countries and the U.S. phased out or limited phosphates due to eutrophication—excess nutrients fueling algal blooms that deplete oxygen and harm aquatic life. Detergents were once a notable contributor (up to 20-40% of phosphorus in some wastewater), leading to widespread bans starting in the 1970s-2010s.

Optical brighteners- (fluorescent compounds) make whites “whiter” by absorbing UV and emitting blue light, but they don’t clean—they coat fibers. And they work! A load of whites using fluorescent compounds will look noticeably whiter than the same load using a detergent without optical brighteners. However this additive can cause skin irritation or allergic reactions in sensitive individuals and may persist in the environment. Studies show mixed results on toxicity, but many eco-formulas omit them out of caution and user preference.

Fragrances- Who doesn’t like a fresh load of clean laundry? However this “clean” smell may come at a cost. Fragrances, dyes, 1,4-dioxane (a potential contaminant), and certain preservatives raise respiratory or endocrine concerns for some users. Many customers are now switching to Hypoallergenic, free & clear options to reduce risks. For laundromat customers, residue from poor-rinsing formulas can transfer to skin. Proper dosing and HE compatibility, as well as properly sized laundry loads, can minimize this concern.

Bottom line: Read labels. “Green” claims vary; look for certifications or transparent ingredient lists.

Top 5 Detergent Brands for Commercial Washers: Science-Backed Picks

Based on independent testing like Consumer Reports, which evaluate stain removal on body oil, salad dressing, blood, grass, chocolate, dirt, etc., in hard/soft water and HE machines, offer the following as top performers suitable for commercial use. These emphasize effectiveness, value, and compatibility. Rankings prioritize overall cleaning power for typical laundromat loads such as towels, work clothes, mixed family laundry. (Full Disclosure: The Laundry Operator has not accepted any compensation for the products and brands listed. None of the named product companies are aware of their inclusion in this article at the time of publication.)

1. Tide (various formulas, e.g., Tide Plus Ultra Stain Release or Hygienic Clean Heavy Duty): Consistently tops tests for tough stains across categories. Excellent in hard water, strong enzyme/surfactant blends. HE-compatible. Premium price but superior results reduce rewashing. Great for commercial reliability.

2. Persil ProClean: Often rivals or edges Tide on certain protein/oil stains with aggressive enzymes. Strong performer in professional evaluations. Persil can often be found at discount stores at a lower cost per ounce than Tide.

3. Kirkland Signature Ultra Clean (Costco): Outstanding value (around 14 cents/load). Top-tier on body oil, salad dressing, dirt; solid overall. HE formulas available. Budget-friendly for laundromats selling or using in bulk.

4. Tide Original Powder or Ultra Oxi variants: Powder excels in some tests for blood/grass; oxygen boosters aid whitening. Cost-effective in bulk for wash/fold.

5. Arm & Hammer or All with Oxi: Reliable mid-tier with good builders and stain lifters. Solid for everyday soils, often more affordable. Check specific HE versions. Our wash & fold services primarily used Arm & Hammer as it was very reasonably priced at our local Wal-Mart.

For true commercial laundromats, consider professional bulk concentrates (e.g., from suppliers offering high-alkalinity or enzyme-heavy liquids/powders tailored for high-volume, hard water). Consumer brands like Tide scale well, but professional lines optimize for lower cost-per-load and machine longevity. Always verify HE/low-sudsing for your equipment.

Eco-Friendly & Specialty Alternatives

While the top conventional performers like Tide and Persil dominate in raw cleaning power, thanks to optimized surfactant blends, high enzyme loads, and robust builders, a growing segment of laundromat customers prioritizes “cleaner” formulas—plant-based, hypoallergenic, low-residue, or low-toxicity options. These specialty detergents won’t always match the heavy-duty muscle of the big names on set-in blood or grass stains in commercial machines, but they offer real advantages in safety, marketing appeal, and customer loyalty. I appreciate their focus on better ingredient profiles while still delivering solid everyday performance through thoughtful surfactant and enzyme choices. Here’s a closer look at the ones that stand out for laundromat use.

Dropps (Pods, especially biobased and Sensitive Skin formulas): These pre-dosed pods shine for convenience and eco-credentials, with many formulas featuring a high percentage of biobased ingredients (up to 84% in some). They earn strong EWG ratings, often A or B rated, and perform respectably in independent pod tests—sometimes landing near top performers for everyday soils, body oil, and odors. Users frequently report clothes coming out fresh without residue, and they dissolve well in HE machines. They’re particularly kind to sensitive skin and work nicely in cold water. (The Environmental Working Group is a non-profit organization made up of toxicologists, chemists and epidemiologists who scrutinizes products to empower you to purchase safer products. Read more on them at: https://www.ewg.org/cleaners/).

For consumers: Easy, mess-free dosing means no measuring errors, lower plastic waste, and gentler chemistry—ideal for families with kids or allergy concerns.

For laundromat owners: Perfect for vending machines or retail shelves. The convenience and “green” story command premium pricing with healthy margins. Stock them for wash & fold to offer an upscale, low-residue option that reduces machine buildup complaints.

Laundry Sauce (Scented Pods): This luxury pod brand combines performance with standout, long-lasting essential-oil-inspired scents (think Australian Sandalwood or French Saffron). Independent tests show it scoring impressively at around 82% in broad stain panels, handling everyday stains well, thanks to concentrated enzymes and surfactants—often placing it competitively among premium pods. It’s formulated to clean as well as or better than leading generics in real-world use, with no dyes and strong odor-fighting power.

For consumers: Laundry that not only gets clean but leaves clothes smelling boutique-hotel fresh. Great for those who want the sensory upgrade without synthetic overload.

For laundromat owners: A fantastic differentiator. Sell these as a premium add-on or in single-load packs—customers will pay more for the scent experience, boosting your retail revenue and turning mundane laundry day into something special. Excellent for attracting younger or scent-loving demographics.

Puracy (Concentrated Liquid): Plant-powered with six enzymes and mineral-based surfactants, Puracy earns praise for hypoallergenic performance and versatility (it doubles as a pretreater). It handles a wide range of everyday soils effectively and scores well in natural-category reviews for sensitive skin and general cleaning power. The 10X concentrate means less packaging and efficient shipping.

For consumers: Gentle yet effective, with minimal residue and good results on moderate stains—plus the peace of mind from a transparent, mostly natural formula.

For laundromat owners: Affordable natural option with solid margins. Great for customers requesting “free & clear” or plant-based. Use in wash & fold for sensitive loads or stock in bulk for value-conscious green shoppers.

Truly Free Home and Branch Basics: These lean even further into minimalist, non-toxic territory. Truly Free delivers noticeable softness, brightness, and everyday cleaning with essential-oil scents, often outperforming other naturals in user tests for moderate soils. Branch Basics excels for ultra-sensitive users with its ultra-simple plant/mineral concentrate but can fall short on heavy stains compared to enzyme-rich competitors. Some lab tests show it no more effective than water on tough soils without proper boosting.

For consumers: Maximum peace of mind on ingredient safety—perfect for those with chemical sensitivities or seeking the “cleanest” possible wash.

For laundromat owners: Niche appeal for education and premium retail. Position Truly Free as a strong “clean Tide” alternative and Branch Basics for the most sensitive clientele. They support storytelling around health and sustainability.

How to Harness These in Your Laundromat Stock a curated selection alongside the top conventional performers. Use signage like “Top Lab-Tested Cleaners” next to Tide and “Gentle & Green Favorites” for the alternatives. Offer single-load packs or vending for impulse buys. In wash & fold, ask customers about preferences (sensitive skin? Strong scent? Eco-first?) and upsell accordingly. These options often carry higher per-load margins and help you stand out as a thoughtful operator who caters to all needs. Educate via flyers or quick videos: “Not all ‘natural’ detergents clean the same—here’s what actually works.”

By offering both heavy hitters and these specialty players, you cover the full spectrum of customer priorities while keeping machines happy and revenue flowing. It’s smart business wrapped in better chemistry.

Real-World Application for Laundromat Operators

U.S. households average 300-400 loads per year, with many doing 4+ weekly. Laundromats capture a big slice, especially in urban areas.

In Wash & Fold Operations: Use a top performer like Tide or a professional equivalent for consistency. Precise dosing via automated systems prevents waste (overdosing doesn’t clean better—it wastes money and leaves residue). For mixed loads, enzyme-heavy formulas handle variety. Track water hardness and adjust (more builder in hard areas). Result: Fewer customer complaints, higher throughput, lower rewash rates. Bulk purchasing drops cost per load significantly versus retail.

Educating Customers: Post simple guides: “Use HE detergent only—regular suds ruin machines!” Offer demos or flyers explaining surfactants/enzymes. Host “Laundry 101” sessions—customers love tips on cold washes (saves energy, enzymes still work) or pretreating. This builds loyalty and positions you as the expert.

Selling Product in Your Laundromat: Stock top-rated options (Tide, Kirkland equivalents, free & clear). Single-load packs or vending machines are convenient. Margins on retail detergent help revenue. Bundle with softeners or boosters. Eco-friendly options appeal to health-conscious users. Label clearly: “Proven top performer per independent tests.”

Practical tips: Monitor machine residue (sign of poor detergent). Offer scent-free for sensitive customers. In high-volume spots, liquid concentrates via dispensers save space and mess. Train staff on proper use to advise customers. With global market growth (projected to rise steadily), smart operators capitalize on premium and convenient products.

Humor alert: One operator told me a customer swore by “that blue stuff in the fancy bottle” because it “smells like success.” Turns out it was just marketing—science (and test results) matters more than aroma.

Bottom Line: Informed Choices Drive Better Business

Choosing detergents isn’t guesswork. Focus on surfactant quality, enzyme profiles, builders for your water, and proven performance data. Top brands deliver because of solid chemistry. For laundromat owners, this means better customer satisfaction, operational efficiency, and extra revenue streams.

Until next issue, keep your suds to a minimum and those loads turning profitably!

Your Laundry Guy,

Travor Lutz, Editor

The Laundry Operator Newsletter

Footnotes / Professional Sources:

• The Spruce: Laundry Detergent Ingredients and How They Work.

• RSC Education: How does washing detergent work?

• Consumer Reports: Best and Worst Laundry Detergents (2026 tests).

• American Cleaning Institute and various surveys on laundry habits.

• EPA and historical data on phosphates.

• Additional science from HowStuffWorks, Arm & Hammer technical explanations, peer-reviewed surfactant/enzyme overviews, and independent reviews of eco-brands (EWG, pod-specific tests).

All data drawn from cited independent tests, scientific explanations, and industry reports as of latest available 2025-2026 information.

Hey there, fellow laundry operators—and anyone else running a retail business who might be listening in. This is a deep ATM money dive…so take a deep breath, pour another coffee, and let’s get after it!

If you’ve been in the laundromat game for any length of time, you already know exactly what I’m talking about. Customers roll in with overflowing bags of dirty clothes, a handful of loose change, and often that familiar look of mild panic when they realize they need more quarters or just some quick cash to make things work. That’s precisely where adding an ATM can step in and make a real difference. It’s not some glamorous, high-tech gimmick or a flashy upgrade that’s going to transform your entire operation overnight. Instead, it’s a straightforward, practical tool that solves an everyday pain point for your customers while quietly putting a little extra money into your pocket each month, but we’re not here to sugarcoat it. Is it always worth the effort? That depends on your specific situation, and we’re going to dig into the honest realities in this discussion.

I’ve pulled together insights from real industry conversations, operator experiences on forums and Facebook groups, vendor information, and plenty of hands-on data from the laundromat and broader retail worlds. My goal is to give you something you can actually keep coming back to—a practical reference guide full of details, facts, and no-nonsense observations. Whether you’re a brand-new laundromat owner still figuring out the ropes or a seasoned retail business operator looking for reliable ways to boost revenue without adding a ton of headaches, this should arm you with what you need to make a smart decision.

Why Laundromats Are Often a Strong Fit for an ATM (But Not Always)

Let me start with the big question that a lot of operators ask right away: Are laundromats genuinely a good place to have an ATM? In most cases, the answer is a solid yes, but it’s not automatic. Laundromats tend to be naturally cash-heavy environments. People come in needing quarters for the machines, supplies like detergent or softener, or just enough cash on hand to handle a bigger-than-expected load or an emergency. An ATM right there on site means they don’t have to interrupt their day by running down the street to the nearest gas station or convenience store, which keeps them in your location longer and often leads to a bit more spending on your other services.

According to data from the Coin Laundry Association and various operator surveys, a significant percentage of laundromats—around 60% in some reports—already have ATMs installed because they see the value in both convenience and that extra revenue stream. Many owners report that it can add anywhere from a few hundred dollars a month in passive income, depending on traffic, and it sends a clear message to customers that you’re thinking about their needs.

That said, let’s be brutally honest here because I don’t want you walking into this with rose-colored glasses. Not every laundromat is going to be a perfect match. If your location has lower foot traffic, sits in an area where people are increasingly going fully cashless, or deals with consistent operational challenges, the machine might only see a handful of transactions and end up feeling like more trouble than it’s worth. In higher-crime neighborhoods or spots with poor visibility and security, you could be inviting unnecessary risks. The key is to honestly evaluate your own volume and customer feedback first. If folks are regularly asking about cash options or complaining about change shortages, it’s probably a smart addition. Plenty of experienced operators have told me it pays for itself fairly quickly and becomes one of those reliable little helpers that supports the core business without demanding constant attention. Our first laundromat ATM paid for itself in just 4 months because we had the only ATM in a two mile radius, in a strip center that always had customers wanting to use cash instead of credit cards. We were their source of cold, hard cash!

Space Requirements, Power, Internet, and Getting It Set Up

One of the first practical questions people have is about the physical side of things—how much space do you actually need, and what kind of infrastructure is required? The good news is you don’t need a massive footprint, but you can’t just cram it into a random corner either. Most standard indoor ATMs require a clear space of roughly 48 inches by 30 inches in front to meet ADA accessibility standards, plus a little breathing room behind for cords and servicing. When you factor in any protective cabinet, you’re generally looking at something around two to three feet wide. The best placement is visible and convenient—often near the front counter or in a well-monitored area—rather than tucked away in the back where it might be overlooked or vulnerable.

On the utility side, power is pretty straightforward: a standard 120-volt outlet is usually all it takes. That said, it needs to be reliable because laundromats already draw significant electrical loads from washers, dryers, and lighting. Make sure your overall service can handle it without tripping breakers or causing issues—many operators recommend checking this during the planning phase.

Internet connectivity is non-negotiable and often where things get tricky. A wired Ethernet connection is ideal for rock-solid stability, though Wi-Fi or a cellular backup can work in a pinch. The reality is that spotty or slow connections lead to frustrated customers and lost transactions, so test your setup thoroughly beforehand. Without dependable internet, the ATM simply won’t function properly for authorizations and processing.

Setup itself is usually pretty manageable. The machine gets bolted down for security, cables are run, and then it’s largely ready to go. Many vendors or placement operators will handle a lot of this for free if you go that route, which takes a big load off your plate.

How to Effectively Advertise and Promote Your ATM

Even the best-placed ATM won’t do much if customers don’t know it’s there or understand the benefits. Don’t assume foot traffic alone will drive usage—proactive promotion makes a noticeable difference. Start with clear, bold window signs or interior posters that say something like “ATM Inside – Quick Cash for Your Laundry Needs” (and mention fees or lack thereof if that’s part of your pitch). Update your Google Business Profile with photos of the machine, add it to your business description, and encourage reviews that highlight the convenience. Or better yet, set up your ATM with its own Google listing so when someone Googles “ATM Near Me”, your ATM will pop-up!

If you’ve built an email list through loyalty programs, pickup-and-delivery services, or regular customers, send occasional friendly blasts letting them know about the new feature. Social media posts can work well too—share quick tips like “Running low on quarters? Grab cash right here and keep your laundry day moving smoothly.” In laundromats, word-of-mouth spreads fast once a few people have a good experience, so leaning into that organic growth is smart. Some operators have even noticed indirect boosts to overall sales because customers stick around longer while waiting for transactions or using the cash. If usage starts slow, don’t hesitate to add more signage or run small promotions.

Should You Buy Your Own ATM or Let an Operator Place One?

This decision is often the make-or-break point for many owners. On one hand, you can purchase and self-manage the machine outright as we did, or you can let a professional ATM operator install and handle one in exchange for space.

Buying your own gives you full ownership after an upfront investment that typically runs a couple thousand dollars, depending on the model and features. You handle cash loading, maintenance, network processing fees, and servicing, but you also keep the lion’s share of the surcharge revenue. The upside is maximum control and profit potential; the downside is that it becomes another operational responsibility on your plate, complete with occasional late-night calls for jams or issues.

Letting an operator place the machine is often the simpler path, especially for newer owners. They provide and maintain the equipment, load the cash, manage repairs, and handle the technical side. You supply the space, a power outlet, and internet, and in return you usually get a revenue share or sometimes a flat payment with no upfront costs. This route is essentially passive income with minimal hassle, though your cut of the profits will be smaller.

For most first-timers in the laundromat world, starting with an operator makes the most sense. It lets you test the concept in your specific location without tying up capital or adding big headaches. Once you see consistent volume, you can always transition to ownership if it feels right for scaling.

Pros and Cons: Self-Management Versus Partnering with an Operator

Let’s lay this out clearly so you can weigh it against your own style and bandwidth. Self-managing gives you the chance to capture the highest possible revenue—often keeping 70% to nearly 100% after fees once everything is running smoothly. You control branding, get full usage data, and build equity in the machine itself. On the flip side, it’s far from passive. You’re responsible for sourcing and loading cash (which involves compliance steps and security considerations), handling repairs, dealing with downtime, and managing insurance implications. Many owners eventually find the cash-handling and maintenance aspects more burdensome than expected.

Partnering with an operator flips that script. The biggest advantages are simplicity and low risk—no big initial outlay, no regular cash runs, and professional servicing. It can even bring a bit more foot traffic without extra work on your end. The trade-offs include a reduced profit share, potential contract restrictions like exclusivity periods, and less say over the machine’s day-to-day performance. If the operator underperforms, you’re still stuck with the arrangement until the contract ends.

While we chose to own and manage our own ATM, my honest take after reviewing many operator stories is that unless you’re already operating multiple locations efficiently or really enjoy the hands-on side, partnering first is the wiser move. You can always buy your own later when the numbers clearly justify it.

What to Expect in Contracts with ATM Operators

If you go the operator route, you’ll almost certainly be asked to sign a site location agreement. These documents are typically a few pages long and cover the basics: how revenue will be split, the length of the term (often one to five years with possible auto-renewal), who is responsible for what (they usually handle servicing and cash; you provide utilities), procedures for removing the machine, insurance requirements, and any exclusivity clauses that prevent competitors from placing another unit nearby.

Take the time to read carefully for things like early termination penalties, minimum performance standards, audit rights on revenue, and liability for damage or theft. It’s worth having a lawyer glance over it if the language feels dense or one-sided. Or, if you are strapped for cash, at least upload the contract into your favorite AI (such as Grok or ChatGPT), and ask it to review the agreement and alert you to terms that should concern you. Then, push back on the ATM operator on anything overly restrictive, such as endless lock-in periods without outs. Vague language around revenue sharing or responsibilities is a common source of future headaches.

Reliable ATM Brands and Ones to Approach with Caution

When it comes to hardware, not all machines are created equal. Highly rated options that operators frequently praise for reliability in retail and laundromat settings include models from Hyosung, which hold up well under heavier use, Genmega for its straightforward design and retail-friendly features, and NCR for solid performance (though often at a higher price point). These brands generally offer good parts availability and support networks.

On the other end, steer clear of very cheap, no-name imports or significantly outdated models from lesser-known sources. Operators often report more frequent issues with jams, poor durability, or spotty technical support in those cases. Stick with established manufacturers and check recent feedback from other laundromat or retail owners in forums—the real-world performance stories are invaluable.

The Most Common ATM Breakdowns You’ll Encounter

Every machine will have occasional issues, and knowing what to expect helps you plan. The most frequent problems include cash dispenser jams (often from improper cash loading, worn parts, or low-quality old bills), card reader failures due to dirt, wear, or tampering attempts, network or connectivity drops that prevent transactions, receipt printer problems, and occasional software glitches.

In a laundromat environment, dust, humidity, and constant foot traffic can speed up wear, so regular cleaning and using quality, newer bills make a big difference. If you partner with a good operator, they should handle most of this promptly.

Crime Risks, Security Needs, and Whether ATMs Make You a Target

This is one of the more serious topics, and it deserves straight talk. ATMs can unfortunately attract criminal attention—things like card skimming devices, jackpotting attacks where malware forces the machine to dispense cash, smash-and-grab attempts with vehicles, or even robberies. Laundromats have seen incidents where thieves tried to yank machines out through doors or windows.

Does having one automatically make your business a bigger target? It can increase visibility for certain crimes, especially if the machine is loaded with cash and not well secured. The mitigation steps are non-negotiable: bolt the unit securely to the floor or wall, install multiple high-quality cameras with clear coverage and 24/7 recording, ensure good lighting, consider alarms, and review your insurance coverage. Place it in a visible, monitored spot rather than isolated areas. Many operators add extra deterrents like signage about surveillance. Don’t cut corners here—one bad incident can erase months of gains and damage your reputation.

How Much Cash Does a Typical ATM Hold?

A standard retail or laundromat ATM often uses a single cassette that holds around 1,000 notes. Loaded mostly with $20 bills, that works out to a maximum of about $20,000. Busier locations might use machines with additional cassettes or require more frequent refills. Operators typically start with $2,000 to $10,000 depending on expected volume to balance convenience with risk. We opted to load our ATM with $10 bills, which served several purposes: We had less of our own money invested in loading the machine, and the customer could break a lower denomination bill for their laundry quarters and would not end up leaving the laundromat with a pocket full of extra quarters.

You or your operator will monitor and refill as needed. Keeping too much cash on hand unnecessarily raises the theft stakes.

Pricing Your Transactions and Setting Surcharge Fees

Deciding how much to charge per withdrawal is part art and part market research. Most operators land in the $2 to $3.50 range, though some high-convenience spots go higher. Check what nearby ATMs (gas stations, stores, etc.) are charging and price competitively—customers tolerate it for the convenience but will walk if it feels excessive. The fee appears on screen before they confirm, so there are no big surprises to your customers.

Realistic Monthly Net Profits You Could See

Profit numbers vary a lot based on location and traffic, but here’s a grounded picture. A typical machine might see 150 to 300 transactions a month at $2.50–$3 per surcharge, generating $400 to $900 gross. After processing fees, maintenance, connectivity, and any revenue share, net profit for the owner often falls in the $200 to $700 range per month. Well-placed laundromats with steady customers can perform toward the higher end or better. Treat it as solid supplemental income rather than a primary driver, and always run the numbers for your specific site.

Bitcoin ATMs: Should You Add One?

Bitcoin and crypto ATMs are one of those newer options that some operators consider for an extra edge, but they come with a much more complex set of considerations than traditional cash machines. On the positive side, they can generate additional revenue through higher transaction fees—often several percent per trade—and attract a tech-savvy or younger customer base that might not otherwise visit your laundromat regularly. In the right demographic, it can give your business a modern, forward-thinking image and even bring in new foot traffic from crypto enthusiasts who combine a laundry run with a quick digital currency purchase. Some operators report that these machines perform well in urban or college-adjacent areas where cash-to-crypto conversions appeal to unbanked or privacy-conscious users.

However, the downsides are significant and worth serious reflection. Crypto ATMs often involve steeper regulatory requirements, including stricter Know Your Customer (KYC) processes, transaction monitoring, and reporting obligations that go beyond standard ATM rules. They’ve been associated with higher scam risks—fraudsters sometimes use them for social engineering or money laundering schemes—which could indirectly harm your business’s reputation if problems arise. Volatility in crypto markets means usage can swing wildly, and some locations have seen increased security concerns or even local pushback and proposed legislation targeting these kiosks. Maintenance and support can be more specialized and expensive, and integration isn’t always seamless with traditional setups.

For most standard laundromats, especially those in suburban or family-oriented neighborhoods, the risks and added complexity often outweigh the rewards. Unless your customer base clearly skews toward crypto users and you’re prepared to handle the extra compliance and potential public relations issues, it’s usually smarter to stick with a conventional ATM for now. If you do explore it, partner with a reputable specialized provider and consult legal and compliance experts first to avoid surprises. The technology is interesting and evolving, but it’s far from a set-it-and-forget-it addition in today’s environment.

ATM Compliance Regulations: What You Absolutely Need to Know

Compliance is one of those behind-the-scenes areas that ATM sales teams sometimes gloss over, but ignoring it can lead to serious legal and financial trouble. In the United States, independent ATM owners and operators fall under Bank Secrecy Act (BSA) and Financial Crimes Enforcement Network (FinCEN) rules. This often means registering as a money services business (MSB) in certain cases, conducting customer due diligence, implementing anti-money laundering (AML) programs, and filing suspicious activity reports (SARs) when red flags appear.

Key requirements include proper record-keeping for cash transactions, background checks on principals, clear sourcing of funds for loading the machine, and robust policies to prevent money laundering or terrorist financing. Operators must maintain detailed logs, monitor for structuring (breaking large amounts into smaller transactions to avoid reporting), and ensure the ATM isn’t being used for illicit purposes. Failure to comply can result in hefty fines, loss of banking relationships, or even criminal penalties.

If you self-manage, you’ll need to handle or outsource these responsibilities carefully—many new owners underestimate the paperwork and ongoing monitoring. Partnering with an established operator can shift much of this burden to them, but you should still verify they’re following best practices and request proof of their compliance program. Stay updated on state and local rules too, as they can add licensing or signage requirements. The bottom line is that treating compliance as an afterthought is a recipe for problems; build it in from day one with professional guidance if needed.

Finding Reputable Vendors and Additional Tips

Look for established companies like ATM Depot, Prineta, Lieberman Companies, or NationalLink when sourcing equipment or services. Check references, BBB ratings, warranties, and real operator feedback. Avoid anyone pushing too-hard sales tactics or unrealistic guarantees.

Always review your insurance rider for ATM-specific coverage, and remember that while cash isn’t disappearing tomorrow, the broader shift toward digital payments means staying adaptable is key.

In the end, an ATM can be one of those quiet, reliable additions that improves customer satisfaction and adds meaningful revenue without completely overhauling your laundromat operations. Approach it thoughtfully, do your local homework, negotiate smart terms, and prioritize security and compliance. It’s not a magic bullet, but for many operators it becomes a valuable piece of the puzzle. Cash still plays an important role in everyday life, especially in service businesses like ours, but the smart move is preparing for whatever the future brings. Talk to accountants, lawyers, and fellow owners before pulling the trigger, and you’ll be in a much stronger position.

Here’s to making your laundry business even more successful—keep those washers & dryers spinning and the cash machines flowing!

Travor Lutz, Editor

The Laundry Operator Newsletter

Greetings fellow laundry operators!

If you’re just getting started in this business or you’re looking to upgrade an existing laundromat, choosing the right equipment might be the single most important decision you’ll make. I’ve talked to plenty of owners over the years, and the ones who thrive are the ones who treat their machines not just as appliances, but as the core product they’re selling every single day. Customers walk through your doors because they need clean, dry clothes without the hassle of doing it at home. When your equipment delivers on that promise reliably, efficiently, and comfortably, you build loyalty, boost turns, and watch your revenue grow.

Subscribe now

The self-service laundry industry in the U.S. is solid and resilient. There are roughly 30,000 coin laundromats generating around $5 billion in annual revenue, with some reports showing even higher figures as the market expands toward $7 billion or more by recent estimates. Individual stores can generate anywhere from $200,000 to $500,000+ in yearly revenue, with top performers hitting even higher through smart operations and modern equipment. Cash flow can range from $15,000 to $300,000 per year depending on location, size, and management. Best of all, laundromats boast a high success rate—around 95% survival over five years—because people will always need clean clothes. But that success doesn’t happen by accident. It starts with equipping your store for real customer needs.

Let’s break this down step by step in a practical, no-fluff way so you can use this as a regular reference guide. We’ll cover the big decisions, back them with useful observations and industry insights, and throw in some ideas you might not have considered yet. Whether you’re planning a small neighborhood spot or a larger facility, these principles scale.

Your Laundromat Is “Selling” the Use of Your Equipment

Think about it like this: every time a customer drops quarters (or swipes a card), they’re buying time on your machines. Your job is to make sure that purchase feels like a great value. That means reliable performance, the right capacities for their loads, reasonable cycle times, and an overall pleasant experience that encourages them to come back week after week.

Poor equipment choices show up fast—machines that break down frequently lead to frustrated customers, negative reviews, and lost revenue. On the flip side, modern, efficient machines can dramatically improve your bottom line. Energy-efficient models reduce utility costs, which often eat up a big chunk of expenses (water, gas/electricity, and maintenance can represent 20-40% of operating costs in many stores). Plus, faster cycles and better spin speeds mean more turns per day, especially during peak weekend hours.

Industry veterans often say the equipment mix can account for a huge portion of your success. A well-planned store with the right balance of machine sizes and types can see higher revenue per square foot and fewer bottlenecks. Properly sized larger machines for bulky loads can command 20-50% higher vend prices while attracting customers who can’t handle those items at home or in apartment machines. That’s real money.

When you’re starting out or renovating, calculate your expected throughput. Throughput is basically how much laundry (number of loads) your laundromat can realistically process in a given time period — usually per hour or per day.

It’s one of the most important planning numbers when you’re starting a new laundromat or renovating an existing one. It helps you decide:

• How many machines you need

• What sizes to buy

• How much revenue you can realistically expect

• Whether your floor layout will create bottlenecks

Simple Breakdown

Imagine you want to know how many loads your store can handle during a busy Saturday morning (peak hours).

To calculate expected throughput, you estimate:

1. How many machines will be running at the same time (not all machines are used 100% of the time).

2. How long a typical wash + dry cycle takes (wash ~30-45 min, dry ~45-60 min, plus transfer time).

3. How many loads each machine can complete per hour.

Example:

• You have 20 washers.

• Average full cycle (wash + dry) takes about 90–120 minutes per customer.

• During peak hours, maybe 70–80% of machines are in use.

• This might give you roughly 10–15 loads per hour across the whole store.

If each load brings in $4–$8 (depending on size), you can start projecting hourly and daily revenue.

Why This Matters

• Too low throughput → Long wait times, angry customers, lost business.

• Too high (overly optimistic) → You spend too much money on equipment you don’t actually need.

• It directly affects your equipment mix (how many small, medium, and large machines you buy) and your dryer-to-washer ratio.

A mid-sized laundromat might aim for dozens of loads per hour during busy times. Factor in your local demographics—urban apartments with limited home laundry might favor quick small loads, while suburban families need family-sized capacity. Spend time observing busy laundromats in similar areas. What machines are always in use? What do customers complain about? That real-world research pays off big time.

Pro Tip for New Operators: Work backward from your goals. Decide how many loads per day you need to hit your revenue target, and then size your equipment and store layout to support that number. Good distributors and equipment suppliers can help you run these numbers based on real industry data for your store size and local market.

The Unit Mix: Numbers, Sizes, Features—What Actually Works

Some commercial laundry equipment brand names might impress some people, but customers care far more about practical results: Can I fit my comforter in any of these machines? Does the machine look clean and well maintained? Will my clothes actually get dry? Is there a machine available when I need it? That’s why your unit mix—the combination of quantities, capacities, and features—matters more than any logo.

A strong mix typically includes:

• Small washers (20-30 lb capacity): Perfect for singles, students, or light weekly loads. These cycle faster and help keep traffic moving during rush periods.

• Medium washers (30-40 lb): The backbone of most stores. They handle typical family loads efficiently and offer the best balance of speed and volume for everyday use.

• Large and extra-large (60-100+ lb): These are your premium earners. Customers with bedding, towels, or bulky items love them, and you can price accordingly. Many successful stores dedicate 20-30% of washers to these larger sizes.

For dryers, follow the industry standard of roughly 1 washer to 1.1–1.5 dryers. Drying simply takes longer, so skimping here creates backups that drive customers away. Mix dryer sizes too, and consider stackable units if floor space is limited. I remember looking at a store for sale that had about 30 washers, and 12 dryers. The owner told me that most of his customers take their clothes home to dry them….uh yeah! If they can’t use what you don’t have, what choice did they have! Don’t be this guy. Equip using an appropriate ratio of washers to dryers.

Real-world example: Many operators report that stores with a diverse mix see better overall utilization. One mid-sized store might have 15-25 washers and a similar or slightly higher number of dryers. Total machines in a typical 1,500–3,000 sq ft store often range from 20-60 pieces, but it’s the balance that counts. Overloading your floor with too many small machines leaves family customers unhappy; too many large ones wastes space during slower hours.

Pay attention to features like programmable cycles, high G-force spin extraction (which cuts drying time significantly), and user-friendly interfaces. Modern machines with card or app payment systems reduce coin handling hassles, cut theft, and give you better data on usage patterns. Some even integrate with management software so you can monitor performance remotely—super handy for multi-store owners or absentee operators.

Top Load vs. Front Load Washers This debate comes up constantly, and for good reason. In commercial settings, front-load washers are the clear favorite for most operators…and for customers! Why? They use significantly less water—often 40-50% less than traditional top loaders—because they tumble clothes through a smaller pool of water with gravity doing a lot of the work. The result is excellent cleaning performance, gentler treatment of fabrics (less wear and tear), and higher spin speeds that leave clothes drier coming out. That means shorter dryer times, lower energy bills, and more satisfied customers.

Tests and operator feedback consistently show front loaders excel at stain removal and overall fabric care. They’re also more energy efficient, which matters when your utility bills can run into the thousands monthly. In busy laundromats, this efficiency translates directly to higher throughput and lower operating costs.

That said, top-load washers still have their fans. They’re often less intimidating to older customers because they are a familiar look and operation to home units. Additionally, they are easier for some customers to load (no bending required), can have quicker cycle times in certain models, and cost less upfront. High-efficiency (HE) top loaders without aggressive agitators close the gap on performance, but they still tend to use more water and energy overall.

Many smart operators run a hybrid approach: majority front-load for efficiency and performance, with a handful of top-load units for accessibility or customer preference. Monitor your own store’s data after opening—water and energy meters don’t lie. In areas with high water costs or strict environmental rules, front loaders become almost essential. New commercial models in both categories emphasize durability for 10,000+ cycles per year, but always buy from reputable distributors with strong local service networks. Downtime is your enemy.

Hot Water Sources: Getting This Right Saves Big Money

Hot water is the lifeblood of good washing, and it’s one of your largest variable costs. You need enough consistent supply to handle multiple machines running simultaneously during peak hours without temperature drops.

Traditional storage tank systems remain popular because they’re straightforward and reliable. Gas-fired tanks often recover faster and cost less to operate where natural gas is available and affordable. Electric tanks are simpler to install in some buildings but can have higher ongoing energy costs. Proper sizing is everything—work with a qualified plumber or equipment supplier who understands laundromat demand. They’ll calculate based on your number of washers, incoming water temperature, and peak usage patterns. Undersized tanks lead to complaints about cold washes; oversized ones waste energy heating and storing unused water.

Tankless (on-demand) systems are gaining traction for their space-saving design and efficiency. We used these in our laundromats. They heat water only when needed, potentially lowering your bills. Gas tankless units generally provide better flow rates than electric ones, making them more suitable for larger operations. However, they require careful sizing for simultaneous demand—multiple large washers can challenge even big units if not properly specified. In cold climates or with hard water, maintenance, like periodic flushing, is crucial to prevent mineral buildup. We had a bi-Annual service contract for our units that got each tankless heater inspected and flushed twice and year.

Many operators report significant savings with the right hot water setup. For example, combining high-efficiency heaters with water treatment can cut costs while improving wash quality. Always factor in installation, local utility rates, and potential rebates for energy-efficient equipment. A good system pays for itself through lower bills and happier customers who get consistently clean results. Don’t skimp here—consult pros early in your planning.

Soap, Softener, and Ancillary Product Vending Machines

One of the easiest ways to boost revenue with almost no extra labor is vending laundry supplies. Customers frequently forget detergent, run out midway, or want softener for a fresh scent. Well-stocked machines can generate meaningful extra income—some owners report hundreds of dollars monthly from a single detergent vending machine.

You can choose between traditional manual/coin-operated machines and newer digital or card-compatible models. The latter offer more selections (20+ items), better reliability, remote monitoring, and integration with your overall payment system. Compact wall-mounted smart vending units are especially popular in space-constrained stores.

What should you stock? Start with proven sellers: single-load detergent packs from trusted brands like Tide, fabric softener, dryer sheets, and stain removers. Add-ons like tennis balls (great for fluffing comforters in dryers), bleach packets, or color catchers appeal to specific needs. Observe sales patterns and rotate stock—local preferences vary.

Beyond basics, think about ancillary products that solve real problems. This is where you can stand out. Mini sewing kits, safety pins, OxiClean stain remover pens, and more!

Snack Vending: Pros, Cons, and Smart Strategies

Snacks and drinks turn waiting time into a more pleasant experience and create another revenue stream. Pros are clear: passive income, improved customer satisfaction, and higher dwell time that can lead to impulse purchases. In family-oriented or high-traffic locations, they perform especially well. Cons include potential messes (spills, drips and wrappers on your floors) and restocking efforts.

Many operators run combination snack/drink machines or separate units. Healthier options—granola bars, nuts, dried fruit, bottled water, and energy drinks—often outsell pure candy these days, particularly with younger or health-conscious crowds. Match your selection to your demographics: juice boxes for families, protein bars for students or workers. We found that we could not keep Grape Crush soda stocked in our laundromats…this was a laundry crowd favorite and often sold out!

Vending machine placement matters—visible but not obstructive. Some stores integrate vending with seating areas or Wi-Fi to make the wait feel productive. Revenue varies, but consistent stocking and fresh products make a difference.

Unique Vending Opportunities

You may want to get creative to differentiate your store. Reusable canvas laundry bags in vending machines are gaining popularity—customers love the convenience of a sturdy, washable bag for transport. How many times has a customer asked you for a clothes hanger? Well, hanger vending is absolutely a thing and a smart add-on. Some vending machines can be configured to dispense wire or plastic hangers so customers can take shirts home ready-to-hang instead of you giving them away free.

Other ideas include lint rollers, fabric fresheners, phone chargers, earbuds, or even small tech accessories for people waiting. Some innovative operators experiment with multi-product smart vending that tracks inventory via apps. These “surprise and delight” items can become signature features that customers talk about. Research suppliers and start small—test what moves in your location.

Laundry Purification and Water Treatment Systems—Worth Every Penny

Should I treat my water? Yes, water treatment systems are very much a “thing” in some successful self-serve laundromats, and they can be game-changers. Hard water, minerals, iron, and other contaminants wreak havoc on wash results, equipment longevity, and your costs.

A good softener or filtration system delivers softer, brighter, cleaner laundry that keeps customers coming back. Benefits stack up quickly: reduced detergent usage (often 20-50% less), less scale buildup that causes breakdowns, extended machine life, lower energy and water consumption, and fewer repairs. Advanced recycling systems can reclaim up to 80% of wash water, slashing utility bills and wastewater fees dramatically while being more environmentally friendly.

Custom solutions exist for every store size. Have your local water tested and work with specialists to design the right setup—compact units fit tight utility rooms. Operators who invest here often call it one of their smartest moves. Cleaner results mean better reviews and loyalty; lower costs mean healthier margins. In today’s competitive market, this is a hidden advantage many older stores miss. Pro Tip: If you decide to invest in water treatment technology…don’t keep it a secret! Let your customers know! Professional looking signage in your store or in your advertisements touting the benefits of “pure” wash water for customers clothing is a must! Don’t miss this marketing opportunity!

Additional Useful Insights for Long-Term Success

Beyond the big equipment categories, think holistically. Invest in quality furniture—sturdy folding tables, comfortable seating, and good lighting will make the experience better. Strong ventilation and climate control keep the space pleasant. Security cameras, bright interiors, and clean restrooms build trust.

Maintenance is non-negotiable. Schedule regular professional service—preventative care prevents costly downtime. Train any attendants (if you have them) on basic troubleshooting and thorough cleaning expectations.

Financing options abound for new owners, from equipment loans to SBA programs. Work with distributors who offer packages, warranties, and ongoing support.

Future trends include more app-based payments, energy monitoring, and even pickup/delivery integration for hybrid models. Stay curious—join operator associations, attend trade shows, and connect with peers online. Common mistakes to avoid: buying all used equipment without inspection, poor space planning that causes congestion, and ignoring local demographics when choosing machine sizes.

Running a laundromat is rewarding work. You provide an essential service, create jobs in some cases, and build something tangible. With the right equipment foundation, you set yourself up for years of steady income and growth. Take your time on these decisions, do your homework, and don’t be afraid to ask for help from experienced suppliers and fellow operators.

You’ve got this! Equip smart, operate with care, and watch your laundromat become a neighborhood favorite. If you implement even half these ideas thoughtfully, you’ll be ahead of the game. Here’s to clean laundry and healthy profits!

Until next week, keep those machines spinning!

Travor Lutz, Editor

The Laundry Operator Newsletter

Hey there fellow laundry operator!

If you’re running a laundromat, you already know it’s not all just the sweet hum of washers and the warm scent of fresh clothes. It’s a business full of people coming and going, machines spinning at high speeds, and plenty of opportunities for things to go sideways—sometimes literally. That’s where good liability insurance comes in, acting like a guardian angel that protects you from a thousand unseen incidents that could ruin what you have worked so hard to build.

Today we’re going to dive deep into what insurance coverage you actually need and, more importantly, how to handle those inevitable incidents when they pop up. Think of this as your go-to reference guide—something you can bookmark, print out, and pull off the shelf (or out of your email) the next time something unexpected happens. We’ll keep it real, conversational, and packed with practical insights from the industry. No jargon overload, just straightforward advice between laundry buddies chatting over a hot coffee at the local coin-op. Disclaimer: Insurance does not negate proactive Operator risk management. Insurance, in itself will not eliminate your business risk. A very wise Insurance broker once warned me that you can destroy your bottom-line by over-insuring. There is a risk/reward balance we need to find. In addition, I’m not an insurance expert…and my knowledge is limited to the few claims I have had to file as well as my many conversations with real insurance experts…and the fact that I once stayed at a Holiday Inn Express. That being said, let’s spin this!

Share

First Things First: The Core Insurance You Need as a Laundromat Owner

Running a self-service laundry means you’re inviting the public onto your premises, 24/7 in many cases. That brings unique risks. The foundation of your protection is usually a Business Owners Policy (BOP), which bundles general liability and commercial property coverage. General liabilities is your shield against claims for bodily injury or property damage to others—think of a customer slipping on a wet floor or their load of favorite designer dress-shirts getting damaged by a malfunctioning machine.

Expect general liability to cover legal defense costs, medical bills for the injured party, and settlements if you’re found liable. Premiums for this can average around $39 a month for smaller operations, but your actual rate depends on location, square footage, equipment value, and of course your laundromat’s claims history.

Commercial property insurance protects your building (if you own it), the washers and dryers, vending machines, flooring, and other contents against fire, theft, vandalism, and certain weather events. This is crucial because those commercial machines aren’t cheap—replacements can run into the tens of thousands quickly. Many operators add equipment breakdown coverage (sometimes called boiler and machinery insurance) for mechanical failures that aren’t covered under standard property policies.

If you have employees, workers’ compensation is required by law in every state except Texas. Workers’ Comp covers medical costs and lost wages if a staff member gets hurt on the job, like straining their back loading machines, burning themselves on a hot iron, or cutting themselves on sharp equipment edges. Don’t skip this—penalties for non-compliance can be steep.

For wash-dry-fold or drop-off services, where you take custody of customers’ clothes, you absolutely need Bailee’s coverage (also called customer goods coverage). You might be wondering where the name “Bailee’s coverage” comes from. It goes back to an old legal concept called bailment. In simple terms, when your customer hands their clothes over to the laundromat for washing and folding, the customer is the “bailor,” and the laundromat owner or operator becomes the “Bailee” — the person temporarily taking custody of someone else’s property.

This type of insurance protects you, the Bailee, from financial loss if those customer items are damaged, lost, or destroyed while in your care. It fills a gap that standard liability or property insurance usually doesn’t cover. So whenever you accept drop-off laundry, you’re stepping into the role of a Bailee — and having the right coverage gives you peace of mind that you can make things right for your customers without it coming out of your own pocket.

Standard general liability often excludes damage to property in your care, so this fills that gap for lost, stolen, or damaged laundry. It’s a must-have if you’re doing any processing services.

Other useful add-ons:

• Business interruption (or income interruption) to cover lost revenue if your store is shut down due to a covered event like fire or major equipment failure. When a Hurricane hit two of our Florida stores and shut us down for a couple days, Business Interruption insurance was a life saver. We were able to claim the lost revenue equivalent to our daily income history.

• Cyber liability if you handle digital payments or customer data, this can give you some added peace of mind.

• Employment Practices Liability Insurance (EPLI) for discrimination or harassment claims involving employees or, in some policies, third parties like customers.

• Umbrella liability for extra protection when claims exceed your primary limits—highly recommended in litigious times.

Shop around with agents familiar with coin laundries, like those affiliated with the Coin Laundry Association. A good policy tailored to laundromats can save headaches and dollars. Review it annually because your business evolves—maybe you added more machines, more employees or started a delivery service. A good insurance policy protects your business in each stage of your growth.

Now, let’s get into the meat of it: handling real-world incidents. The key theme across all these is document, don’t admit fault, show compassion, and notify your insurer promptly. Let’s break it down scenario by scenario.

Handling Accidents and Injuries: Slip-and-Falls, Machine Mishaps, and More

Slip-and-fall claims are probably the most common headache for laundromat owners. Wet floors from spills, tracked-in rain, or even detergent puddles are classic culprits. A customer twists an ankle (or worse!), and suddenly you’re looking at medical bills and potential lawsuits.

What to do immediately:

1. Ensure the person’s safety. Offer help, call emergency services if needed, and don’t move them if there’s a risk of further injury. Show genuine concern—people remember how they were treated. Don’t assign blame or accept fault. Focus on the immediate needs of the injured customer.

2. Document everything. Take photos of the scene, the hazard (before cleaning it up), weather conditions if relevant and any warning signs or mats you had in place. Get written statements from the injured person and witnesses, noting exact times, what they saw, and contact info. Use a simple incident report form. It is important to document what everyone saw while it is fresh in mind (and before their best friend suggests they contact the Morgan & Morgan law firm!)

3. Preserve evidence. Don’t delete or overwrite security footage—secure it right away. We would commonly store security footage of incidents for months until we were sure it was no longer needed.

4. Notify your insurance company as soon as possible, even if the injury seems minor. Many insurance policies have strict reporting deadlines, often within 24-48 hours for serious incidents.

Other injuries include hands caught in washer doors, burns from hot dryer contents (especially if customers overload machines), or trips over laundry carts. For equipment-related injuries, maintenance logs are your best friend. Prove you followed manufacturer guidelines for inspections and repairs. Malfunctioning equipment might lead to claims against you for negligence if you knew or should have known about a mechanical issue.

If it’s an employee injury, workers’ comp kicks in—cooperate fully with the claim process to keep premiums from skyrocketing. Your worker’s comp provider will give you a step by step document on how to make claims, when to seek medical attention, etc. Read it. Follow it.

Potential Dangerous Situations and Malfunctioning Equipment

Say a washer starts leaking badly or a dryer overheats. This could create a dangerous situation even before someone gets hurt.

• Shut down the machine safely and post clear “Out of Order” signs. Resist the urge to just ignore it during your busy period because it “seems to be working”. Error on the side of caution and shut off equipment that could cause you an insurance problem.

• Document the issue, any prior maintenance, and customer complaints.

• If someone complains of a near-miss or minor damage, treat it seriously, document it thoroughly and report it to your insurance broker. They will advise you as to if a formal insurance report is necessary.

Your property and equipment breakdown coverage can help with repairs, while liability covers any resulting injuries. Regular preventive maintenance isn’t just good business—it’s insurance against claims. You may also want to consider service contracts with reputable vendors which will show proactive equipment management and could minimize the severity of insurance claims.

Intentional Acts, Vandalism, and Security Lapses

Vandalism happens—broken windows, graffiti, damaged machines, or even theft. Like the time one of my competitors had a guy come in to his laundromat wearing a costume mask, who proceeded to bash the coin changer to death with a crowbar. Commercial property insurance usually covers this, minus your deductible. File police reports immediately and take photos. Funny side note: This “Florida-man” got caught because his girlfriend, who joined him in this adventure, forgot to wear her mask!

Security lapses, like poor lighting in the parking lot leading to an assault or inadequate cameras missing a theft, could trigger premises liability claims. Invest in good surveillance, well-lit exteriors, and maybe even an attendant during peak hours. Post conspicuous signs throughout the facility with “Smile, Surveillance Cameras In Use!” Document your security measures; they show you took reasonable care.

For intentional acts by customers or third parties causing harm (e.g., someone deliberately damaging equipment or starting a fight), general liability may cover resulting third-party injuries, but expect your insurer to investigate thoroughly. Cooperate and provide all evidence. Always contact law enforcement for documentation.

Customer Discrimination Claims

This is a sensitive area, and one that catches many laundromat owners by surprise. Claims might arise from a customer feeling they were treated unfairly—perhaps denied service, spoken to rudely, or singled out based on their appearance, race, accent, or other protected characteristics. What starts as a disagreement at the counter can quickly escalate into a formal complaint or lawsuit alleging discrimination or harassment.

Standard general liability insurance usually won’t help here because most policies specifically exclude coverage for discrimination and harassment claims. That’s where Employment Practices Liability Insurance (EPLI) comes in—and more specifically, EPLI with third-party coverage.

Think of regular EPLI as protection against claims brought by your own employees (wrongful termination, harassment in the workplace, etc.). The “third-party” extension broadens that shield to cover similar allegations made by people outside your staff—like customers, vendors, or anyone else who interacts with your business. It can pay for legal defense costs, settlements, and judgments if a customer accuses one of your attendants (or even you) of discriminatory treatment. Some policies even cover claims involving civil rights violations tied to how someone was served or refused service.

Not every EPLI policy includes robust third-party coverage automatically, so it’s important to review your policy wording or ask your agent specifically for it. In today’s environment, where customer interactions are recorded on phones and social media moves fast, this coverage can be a real lifesaver. Prevention is still your best defense—train your staff on respectful, consistent service, post clear policies, and document any difficult interactions factually—but when a claim does surface, having the right EPLI in place lets you hand it over to the professionals and focus on keeping your laundromat running smoothly.

Clothing Damage Claims: Self-Service vs. Wash-and-Fold

Self-service machines: Customers are generally responsible for their own loads. Signs warning about overloading, proper use, and that the business isn’t liable for damage, can help. However, if a machine malfunctions that you should have known could ruin a customer’s clothing, liability or Bailee coverage might apply.

For wash-dry-fold services, you’re a Bailee—responsible for the items in your care. Bailee’s coverage is essential here. Claims for lost items, shrinkage, color bleeding or improper cleaning are common. Best practices:

• Issue detailed receipts with item descriptions and condition noted. We discovered at our Laundromats that a very expense comforter brand (that we won’t name because we don’t want a letter from their attorney) were prone to tearing when washed. Despite the cost to purchase these comforters and the prestige attached to the name, the seams almost always failed. We routinely refused to launder this brand, or warned our customers of likely damage before accepting their comforters to launder, and we saved ourselves countless problems.

• Use a simple claim form that requires proof of value (original receipts help, but depreciation often applies), that the customer completes.

• Inspect items upon drop-off and note pre-existing damage to the customer at drop off. That minor tear in a blouse when the item is dropped off at your laundromat will undoubtedly be “your fault” when the customer comes in to pick up the laundered item.

• Communicate clearly about turnaround times and limitations.

Make it your policy to pay small, legitimate claims quickly out of pocket sometimes to maintain goodwill—your insurer can advise. For larger ones, involve the insurance carrier early.

Key Considerations Before Filing a Claim

Not every incident needs a claim. For minor damage you can cover cheaply, paying yourself might avoid premium increases. But for anything involving injury or significant potential liability, report it. Hiding incidents can lead to denied coverage later if they escalate.

Time frames: Policies vary, but notify your agent or insurer promptly—often “as soon as practicable.” Notification delays can jeopardize coverage. For some claims, there are statutes of limitations (1-3 years typically for personal injury, varying by state).

Impacts on future coverage: Claims can raise premiums or lead to non-renewal, especially multiple ones. A clean record helps. Work with your agent on risk management—many insurers offer discounts for safety programs, cameras, or loss-control consultations.

Shop your policy periodically, but loyalty to a good claims-paying insurer is valuable. Ask about claims history reports and how they handle laundromat-specific issues.

Building a Strong Incident Response Plan

One of the smartest things you can do as a laundromat owner is to create a clear, written incident response plan that every member of your team knows inside and out. Think of it as your emergency playbook — something that keeps everyone calm, consistent, and protected when things go wrong. A well-designed plan not only helps you manage insurance claims more effectively but also minimizes the chance of small problems turning into big headaches.

Start by putting together a simple, one- or two-page protocol that covers the essential steps. Make sure it’s easy to read, posted in the back office, and included in your staff training manual. Here’s what a strong plan should include:

First and foremost, immediate safety always comes first. As soon as an accident or dangerous situation occurs, the priority is making sure everyone is okay. Help the injured person if it’s safe to do so, call 911 for serious injuries, and address any ongoing hazards — like turning off a malfunctioning machine or putting up wet floor signs.

Next, move quickly into thorough documentation. This is where many operators lose ground with insurance companies. Have a checklist ready that includes taking clear photos of the scene (before anything is cleaned up), gathering written or recorded statements from the people involved and any witnesses, and preserving security camera footage. Note the exact time, date, weather conditions if relevant, and a factual description of what happened. The more detailed and objective your records are, the stronger your position will be.

Make sure the protocol clearly spells out who to call and in what order. Typically this means notifying the on-duty manager or owner right away, followed by emergency services if needed, and then contacting your insurance agent or claims hotline as soon as possible. Having phone numbers readily available (including after-hours contacts) removes panic and delay from the equation.

A critical rule that should be bolded in your plan: Never admit liability, either in writing or in conversation. Train your staff to respond with compassion instead of defensiveness. A simple, sincere phrase like, “I’m really sorry you’re hurt — our insurance company will investigate this and take care of things,” protects you while still showing genuine care for the customer.

Finally, include guidance on follow-up. Stay in touch with the injured party in a kind and professional way, but always route communication through the proper channels — usually your insurance adjuster or attorney. This helps maintain goodwill without accidentally creating new liabilities.

Once your written protocol is in place, train everyone regularly. Don’t just hand out the document and hope for the best. Hold short training sessions every few months, and use role-playing scenarios to make it real. Walk through common situations like a slip-and-fall, a child getting a finger caught in a cart, or a customer claiming damaged clothing. When your team has practiced these responses, they’ll handle real incidents with confidence and consistency.

The beautiful thing is that a solid incident response plan does double duty. It doesn’t just prepare you for insurance claims — it actually helps prevent many incidents in the first place. Staff who are more aware of risks tend to spot and fix hazards faster, leading to fewer accidents overall and a safer, more professional environment for everyone.

Take the time to build this now, before you need it. You’ll thank yourself the next time something unexpected happens — and your insurance company will appreciate working with a business that’s clearly prepared and responsible.

Wrapping It Up: Peace of Mind in a Spinning World

Owning a laundromat is rewarding—providing a vital service, building community ties, and running a tangible business. But the spins and tumbles of daily operations mean insurance isn’t optional; it’s essential. By understanding your coverages, preparing for incidents, and responding thoughtfully, you’ll protect your investment and sleep better at night.

Remember, this is general guidance—your specific policy and local laws matter. Consult a knowledgeable insurance professional and attorney for tailored advice. If something’s unclear in your setup, reach out; we’re all in this wash cycle together.

Stay safe out there, keep those floors dry, and may your machines run smoothly for years to come. If you’ve got a story from the trenches or questions about your policy, drop it in the comments or shoot me a note. Until next time, happy laundering!

Your Friend in the Laundry Biz,

Travor Lutz, Editor

The Laundry Operator Newsletter

I’ll walk you through the basics, share real-world examples, crunch some numbers based on solid industry insights, toss in some humor from the trenches, explore creative ideas that exist today or could work tomorrow, and tackle some of the bigger questions operators ask about implementation. We’ll also connect this to practical topics like preparing to sell your laundromat, because smart programs can make your business more attractive when that day comes. By the end, you’ll have a clear picture to decide what fits your operation. Buckle up—this is going to be a thorough one, because your time (and your bottom line) matters

.

What Exactly Are Rewards and Subscription Programs in the Laundromat World?

Let’s start simple. A rewards or loyalty program typically rewards customers for repeat business with points, discounts, free cycles, or bonuses. Think of it as the laundromat version of your favorite coffee shop stamp card, but hopefully without the awkward “one more punch and you’re there!” pressure.

Common examples include:

• Free washer or dryer use after purchasing a certain number of washes and dries (for instance, buy 10 loads and get the 11th free).

• Reduced machine rates for frequent laundromat users, often tracked via a loyalty card or app.

• Reduced rates or bonus value for prepaid programs, similar to buying AI tokens or bulk credits at the local carwash with extra value added.

• Reduced pricing for Wash & Fold customers based on frequency of service or total pounds of laundry brought in.

• Reduced rates for prepaid Wash & Fold services.

• Free use of dryers based on the number of washer loads or frequency of visits.

• Similar perks for dry cleaning drop-off services, such as reduced rates for frequent customers or prepaid packages.

Subscription programs take it a step further by turning one-off visits into predictable, recurring revenue. Customers pay a monthly or annual fee for a set number of loads, pounds of Wash & Fold, priority access, or even unlimited options in some setups. It’s like Netflix for your dirty socks—predictable convenience in exchange for a commitment.

Real examples operators are using successfully include monthly Wash & Fold plans offering 14–32 loads with pickup and drop-off options (think Gold or Platinum tiers priced around $159–$219 per month), prepaid pound-based subscriptions with discounts for overages, and targeted plans for students or families with capped pounds per semester or month. These aren’t pie-in-the-sky ideas. Modern systems like card readers, POS platforms, and laundry management software make implementation straightforward, often without needing a complicated app for basic versions.

Why Bother? The Customer Value Side

Customers genuinely hate laundry day. It’s time-consuming, can get expensive when you factor in travel, detergent, and quarters, and about as fun as watching paint dry—except in this case the “paint” is your favorite shirt that might shrink if you’re not careful. Rewards and subscriptions can flip the script in a big way.

Frequent users start to feel appreciated instead of just transactional. A simple “10th wash free” or points that turn into free dryer time reduces the effective cost per load, which matters a lot for many laundromat customers. Loyalty members often spend more overall because the program makes them feel like insiders. Industry patterns show that loyalty program participants can generate noticeably higher repeat visits and average transaction values.

Imagine a regular who’s been dragging heavy bags through rain or snow for years suddenly getting a friendly notification or punch-card win: “Congrats! Your next dryer cycle is on us.” That small moment turns “ugh, laundry again” into “hey, at least I get something back this time.” Subscriptions add real convenience—predictable billing, no scrambling for change, and for Wash & Fold customers, the holy grail of never having to fold your own fitted sheets again! Busy families, college students, working professionals, and even seniors love knowing their laundry is handled without weekly surprises.

The Operator Side: Does It Actually Add Value to Your Business?

Yes—when designed and managed thoughtfully. The U.S. laundromat industry is a resilient sector generating billions in annual revenue across thousands of locations. It boasts strong survival rates and relies heavily on repeat business. But customer churn can still quietly eat away at profits in competitive areas.

Loyalty programs help by driving recurring revenue and increasing lifetime customer value. Instead of constantly chasing new walk-ins (which gets expensive through print and social media advertising or signage), you nurture the customers you already have. This leads to more stable machine utilization and higher overall revenue without necessarily raising base prices.

Subscriptions are especially powerful here. They create predictable cash flow that helps with everything from utility bills and equipment upgrades to staffing. Operators running Wash & Fold subscription tiers often report meaningful lifts in revenue stability. Reduced churn means fewer empty machines during slower hours, and the data from loyalty tracking gives you insights into peak times, popular services, and what promotions actually work.

Humor alert: Running a laundromat without some form of loyalty is a bit like giving away free samples at Costco but never asking for the sign-up of a membership card. You’re leaving money, relationships, and valuable data on the table. Many owners already offer basic loyalty perks, and those who track results often see better retention and word-of-mouth growth.

Potential Downsides and How to Avoid Them

Of course, not every program is an automatic winner. Poorly designed rewards can erode margins if you give away too much value without enough volume uplift. You might attract “deal seekers” who only show up for promotions and disappear otherwise (think “All You Can Eat Shrimp” at Red Lobster). Tech issues with card systems or apps can frustrate customers and staff alike. Subscriptions carry the risk of over-promising—if your capacity isn’t ready, turning away a paying subscriber feels terrible and hurts trust.

The fix is to start small and test (which is my motto for everything!). Begin with a simple points system or bonus credit on prepaid loads using your existing card or POS setup. Track redemption rates carefully and adjust so the increased volume more than offsets the discounts. Be transparent with customers—no hidden fine print. Clear communication and realistic capacity planning go a long way.

Creative Ideas: What Exists Today and What Could Work Tomorrow

Beyond the solid core examples we’ve already covered—like free washes after a certain number of paid cycles, reduced rates for frequent users, pound-based discounts on Wash & Fold, and prepaid dryer perks—there are plenty of other smart promotions and subscription-style plans that forward-thinking operators are successfully using right now. These ideas build on the foundation of rewarding loyalty while creating new streams of predictable revenue. I’ll walk through each one with practical explanations, real-world style applications, and why they tend to add value for both customers and your bottom line. The beauty is that many can be implemented using your existing card systems, POS software, or simple punch cards, keeping things straightforward without massive tech overhauls.

Tiered Memberships. One of the most popular and effective approaches is offering tiered memberships that give customers clear reasons to move up in value. Start with a Basic tier that delivers straightforward discounts on washes, dries, or Wash & Fold services—perhaps 10-15% off regular rates for anyone who signs up. The Premium tier might add convenient perks like priority machine access during busy hours (via app notifications or reserved slots) or automatic alerts when their laundry cycle is finished, saving them from staring at spinning drums. At the top, a VIP level could include free pickup and drop-off for Wash & Fold orders, monthly detergent credits, or even priority scheduling for dry cleaning. Customers love the sense of progression and status, while you benefit from higher lifetime value and more committed users. Some operators price these monthly (e.g., $19 Basic, $39 Premium, $79 VIP) and see strong uptake because the perceived value quickly outweighs the fee.

Referral Bonuses. Word-of-mouth is still king in local service businesses, and referral programs supercharge it. A simple but powerful version gives both the referring customer and the new one a free load, a $10 credit, or bonus pounds on their next Wash & Fold order. You can track this easily through unique referral codes in your loyalty app or on physical cards. This not only brings in new customers at a much lower acquisition cost than traditional advertising but also strengthens relationships with your existing base—they feel like they’re sharing something genuinely helpful. Humor break: It’s the laundry equivalent of “I told my friend about this place and now we both get clean clothes for free—win-win!”

Bundled Family or Household Plans. For busy households, a bundled family plan can be a game-changer. Offer discounted rates when multiple people from the same address or family combine their laundry volume—say, a 20% reduction when the household hits 100+ pounds of Wash & Fold per month. You can verify this through address matching in your system or a shared household loyalty card. This encourages larger, less frequent visits (which improves machine turnover) and appeals to multi-person homes that are often your steadiest customers. It also reduces the mental load for parents juggling sports gear, work clothes, and endless towels.

Eco or Off-Peak Rewards. Sustainability and operational efficiency meet in eco and off-peak rewards. Give extra loyalty points or bonus credits to customers who run loads during slower hours (like weekday mornings or late evenings) or who choose your most energy-efficient machines. Some operators tie this to “green” initiatives, such as bonus points for using eco-friendly detergent they sell on-site. This helps smooth out demand across the day, lowers your peak-time wear-and-tear on machines, and attracts environmentally conscious customers who appreciate the alignment with their values. It’s a subtle way to turn operational challenges into loyalty opportunities.

Gamification Through Apps or Cards. First, for those of us born in the 1960’s or prior…. Gamification is the practice of taking elements from games — like points, badges, levels, challenges, streaks, leaderboards, and rewards — and applying them to everyday, non-game activities to make them more engaging, motivating, and fun. So by adding light gamification it keeps things fun and engaging. Customers can earn streaks (e.g., “Wash five weeks in a row and unlock a free detergent pod or small credit”), collect badges for milestones like 50 loads processed, or participate in monthly challenges. Even without a fancy app, you can manage this with a simple loyalty card punch system or basic software. The psychological boost of progress and small rewards encourages habitual visits. Operators report that gamified programs increase visit frequency by noticeable margins because laundry suddenly feels less like a chore and more like a personal challenge with payoffs.

Hybrid Prepaid + Subscription Models. These bridge traditional prepaid value with recurring convenience. Customers buy a block of laundry pounds or cycles at a meaningful discount (for example, purchase 200 pounds of Wash & Fold and get 220 pounds worth of credit) with an optional auto-renew feature that bills them monthly. This gives budget-conscious users upfront savings while creating recurring revenue for you. It’s especially effective for Wash & Fold because customers can use credits flexibly for overages without losing the discounted rate structure.

Partnerships with Apartment Complexes and Corporate Wellness Programs. Don’t limit yourself to solo efforts—partnerships multiply your reach. Team up with nearby apartment complexes to offer resident-only discounts or exclusive subscription rates, often negotiated as part of their tenant amenities package. Similarly, corporate wellness programs at local office buildings can include subsidized laundry benefits for employees who drop off work attire or uniforms. These B2B-style deals bring steady volume, often with payment handled through the partner, reducing collection headaches while positioning your laundromat as a valued community partner.

College-Town Specials. In markets near universities, semester-long plans shine. Offer unlimited or high-volume access packages tailored to student schedules—perhaps 50 loads per semester or unlimited Wash & Fold up to a generous pound cap during peak months. Market these through campus partnerships, student email lists, or posters near dorms. Students are often cash-strapped but generate consistent volume, and a well-designed plan can lock in loyalty that carries over into post-grad life.

Dry Cleaning Integrations. If you offer or partner on dry cleaning drop-off, monthly garment credits with optional delivery make a natural extension. Frequent customers might get 8-12 garments processed per month as part of a subscription, with add-ons for same-day or doorstep service. This creates a premium revenue tier and turns one-time drop-offs into ongoing relationships.

Looking ahead, we could see even more innovative twists: deeper smart-home integrations that send laundry reminders via connected apps, AI-driven personalized offers based on individual usage patterns (like “You usually wash on Tuesdays—here’s a mid-week bonus”), or community events tied to loyalty milestones, such as free pizza nights for top members. The golden rule across all these ideas is to keep them personal and genuinely valuable without adding operational complexity.

Implementation Tips for Success

Getting started doesn’t have to be overwhelming. Choose technology that fits your setup—many card systems and POS platforms already include loyalty modules for points, bonuses, and subscriptions. Promote the program heavily with clear signs in the store, social media posts, email or text blasts to existing customers, and a nice sign-up incentive for new members.

Measure everything you can: participation rates, redemption patterns, revenue lift, and changes in churn. Train your attendants so they can enthusiastically explain and enroll customers on the spot. On the business side, consult with your accountant or attorney about how to structure rewards properly for taxes and accounting. Keeping clean, accurate financial records is always smart—especially if you’re thinking about the future.

How Programs Boost Value When It’s Time to Sell

Rewards and subscription programs don’t just help day-to-day operations—they can significantly strengthen your business when it’s time to sell (yes, that day will come). Buyers love seeing recurring revenue streams and proof of customer loyalty because it suggests the income is more predictable and transferable. Strong loyalty and subscription programs demonstrate to buyers that your revenue has engaging, recurring elements—which can support higher valuations (often in the 3-5x net cash flow range) and make the business more appealing overall.

Wrapping It Up: Yes, They Add Value—If You Do It Thoughtfully

Rewards programs and subscriptions aren’t magic bullets, but in an industry built on repeat necessity, they turn simple transactions into ongoing relationships and one-time visits into predictable revenue streams. Customers gain convenience and savings, while operators benefit from better retention, data insights, and a stronger business foundation—whether you plan to run it for years or eventually sell.

Start small, test what resonates with your local customers, measure results, and expand from there. Listen to feedback and keep operations smooth.

Got a specific setup, challenge, or market nuance in your laundromat? Feel free to reach out—I’d love to brainstorm more tailored ideas. In the meantime, keep those machines spinning cleanly and those customers coming back with a smile. Your laundromat (and your future self) will thank you.

Your Laundry Buddy,

Travor Lutz, Editor

The Laundry Operator Newsletter

Welcome fellow time traveler Laundry Professionals!

Last week we began our exploration of the future of AI in our Laundromats…and we discovered that the future is now! We discussed how AI can assist us with marketing and advertising, how it can develop our laundromat websites from scratch, manage our Social Media posts, and even handle our incoming phone calls and our walk in traffic! It all sounds pretty amazing so far, but we’ve only scratched the surface. So, pull up a stool, pop open your favorite energy drink, and let’s spin!

Before we begin, two reminders: Let’s keep in mind that for the Laundry Operator, AI is nothing more than a set of high-tech “tools” that can help us do the jobs we don’t like, don’t have time to do, or are simply not good at. None of the AI tools we discussed last week are necessary to succeed in this business. As I like to say, Laundromats are not rocket science and do not require rocket science technology like AI…but that being said, some of us, including yours truly, can use all the help we can get, and AI may be the ticket. And finally…none of the company products named herein has paid for, or encouraged us to include them, or even knows they are mentioned at the time of this writing. These services are being noted simply in context of the topic we are covering today.

Equipment Monitoring and Maintenance:

Machines have a knack for breaking down at the absolute worst possible times (Is there ever really a good time for a breakdown?) — right in the middle of a busy Saturday afternoon when every customer is waiting and your phone is ringing off the hook. Artificial intelligence solves this headache through small, affordable sensors that continuously watch your washers and dryers like a tireless mechanic on duty 24/7. These sensors track key details such as vibration (to catch worn bearings or unbalanced loads), temperature (to spot overheating motors or heating elements), power consumption (to detect electrical issues), humidity, cycle counts, and runtime hours. The AI analyzes all this data in real time and sends simple alerts straight to your phone, like “Dryer number 4 is showing early signs of bearing wear — schedule a check soon” or “Washer #12 motor temperature is rising — inspect belts before it fails.”

Popular options that work well for laundromats include KCF Technologies’ SMARTdiagnostics (which uses wireless vibration sensors and has helped commercial laundries avoid dozens of hours of downtime), Augury’s Machine Health platform (industrial-grade IoT sensors that monitor vibration, temperature, and magnetic fields with very high accuracy), and more affordable entry points like Sense Energy Monitor combined with basic vibration sensors, or manufacturer-built systems from brands like Speed Queen that offer built-in connectivity. Many of these systems are wireless, easy to install on existing machines, and use cloud-based AI so you don’t need your own tech team.

Value to the Operator: You avoid expensive emergency repairs that can cost hundreds or even thousands per incident, while extending the life of your valuable machines so they keep earning money longer instead of sitting broken. Steady income becomes much more reliable, and you prevent customer frustrations — fewer angry calls about clothes stuck inside a dead machine during peak hours. Many owners reportedly see a quick return on investment through reduced repair bills and happier, more loyal customers.

Actionable Steps to Vet and Implement: Reach out to your regular machine technician or favorite equipment supplier (such as a local Speed Queen or Dexter dealer) and ask specifically about adding predictive maintenance sensors — many already partner with systems like KCF or Augury. Start small by installing sensors on just two or three of your busiest machines to test how it works. Set up phone alerts through the companion app so notifications come directly to you. Keep a simple log of repair costs and downtime before and after implementation so you can clearly see the savings. Check reviews from other laundromat owners on Google or industry forums, and request a demo or short trial period from the provider. This low-risk approach lets you experience the benefits without a big upfront commitment.

With these tools watching over your equipment, you may spend less time putting out fires and more time growing your business.

Dynamic Vending Pricing for Washers & Dryers: Instead of the same price all day, AI looks at busy times and suggests higher prices during peak evenings and lower ones in quiet mornings. Not unlike many other businesses (i.e. Airlines, Hotels, Auto Rentals, etc.), you charge a premium during your greatest periods of demand, and discount your service when business is slow.

Value: More money overall without losing customers. Customers are accustomed to paying more for goods and services when demand is high, and many will seek out slower, less demand periods to get a “better deal” therefore distributing your customer usage more evenly through the day and week.

Actionable steps: Upgrade to a card payment system that supports dynamic pricing. Set safe minimum prices. Watch results for one month and make adjustments as necessary.

Laundromat Accounting and Banking Functions: Keeping books straight is boring…but necessary. AI in programs like QuickBooks, Zeni, Pilot and many other accounting services look at your expenses and automatically sorts them while predicting future money flow.

Value: Less time on paperwork, fewer mistakes, and better decisions about spending.

Actionable steps: Sign up for QuickBooks (or any other highly rated AI accounting service) and connect your bank. Let AI suggest categories, flag issues, monitor cash flow and organize your finances.

Security Camera Monitoring & Accident and Liability Mitigation: AI cameras can notice when someone spills something or if there is unusual activity and send you an alert. They also keep video that helps with insurance claims. For now, we will pause on this topic but will be covering this area of AI assistance in Laundromats for an upcoming deep-dive issue of The Laundry Operator Newsletter! Stay tuned!

Staff Monitoring, Hiring Efforts, Payroll and HR Functions: AI can help you sort and screen job applications, create staff schedules, calculate staff payroll and monitor staff productivity. In the area of hiring, most large corporations now use AI to review, sort and respond to resumes. A company that receives dozens or thousands of resumes can now screen them down to the most desirable candidates in minutes, instead of days. Think you can’t do the same? Simply sign up for a free AI account with Grok or ChatGPT (or your favorite AI) and then upload the stack of Laundry Attendant resumes (simply attach all of them in a PDF file in the AI search bar), and ask AI “Review these 10 resumes and identify the candidate that possesses the skill set and work history to perform the duties of a Laundry Attendant”. To make AI’s response even more complete, provide a brief list of the most important duties the Attendant will perform. In seconds, you will have the resumes ranked for you to review. And for a real eye opener, ask AI to identify the social media posts or public record reports associated with your top three candidates and ask it to show them to you. This may allow you to identify a potential problem well in advance of hiring! Once you pick your new hire, have AI write the rejection letter for the other candidates and email it for you!

Value: AI can perform many of the monotonous HR and Payroll duties that Operators hate doing and in most cases, do it more efficiently and faster….saving you time and money.

Actionable steps: Either use free tools on hiring sites or test any of the free AI versions out there. A word of caution, AI is good…but for now, it makes some mistakes too. Always review AI suggestions yourself and trust your own intuition!

Dry Cleaning & Wash & Fold Management and Tracking

One of the most time-consuming and error-prone parts of running a wash-and-fold or dry cleaning service is keeping track of customers’ clothes from the moment they drop them off until they are clean, folded, and ready to be picked up. In the old days, many owners used paper tickets, handwritten notes, or simple spreadsheets, which often led to mix-ups, lost items, forgotten orders, or arguments with unhappy customers. Artificial intelligence helps fix this by using smart software that follows every order automatically, almost like a digital detective that never forgets a detail.

Popular AI-powered tools made specifically for laundromats and dry cleaners include CleanCloud, Cents, and Turns. CleanCloud is a complete system that lets you scan or tag items when a customer drops them off, and then tracks them through washing, drying, folding, and packaging stages. It uses AI to predict how long each order will take based on your past jobs and automatically sends text message updates to customers, such as “Your wash-and-fold order is being processed and should be ready by 4 PM today” or “Your dry cleaning is finished and ready for pickup!” Cents works in a similar way but is especially strong for laundromats that also offer pickup and delivery. It creates digital bag tags, shows a live dashboard of all active orders, and uses AI to spot potential delays before they happen. Turns adds extra AI insights, like recommendations on how to schedule your staff better based on order volume.

Value to the Operator: These tools lead to far fewer lost or mixed-up items, which means fewer refunds and angry customers. Workflows become much smoother because staff can see exactly where every order is at a glance instead of searching through piles of clothes. Happier customers come back more often and tell their friends, which grows your business. Some owners report saving several hours a week on paperwork and phone calls, plus better organization that reduces stress during busy weekends. Yes, there is a learning curve to all new tools, but once mastered, a workflow tool should improve your businesses performance and help you keep your sanity!

Actionable Steps to Vet and Implement: Start by visiting the websites for CleanCloud (cleancloudapp.com) and Cents (trycents.com) and signing up for their free demos or trial periods. During the demo, show them how your current drop-off and pickup process works and ask how the software would handle your typical daily order volume. Test it with a few real or pretend orders to see how easy the tagging and tracking feels. Check the pricing — many of these systems have monthly subscriptions that start around $100–$200 depending on your size, but they may pay for themselves quickly through saved time and extra orders. Read simple reviews from other laundromat owners on Google or YouTube by searching “CleanCloud review for small laundromat.” Once you choose one, have a short training session with your staff (most companies offer this), begin with just your wash-and-fold service, and gradually add dry cleaning or other services that you need to track. Keep your old paper system as a backup for the first few months while everyone gets comfortable. This way, you gain confidence without risking big mistakes.

With these tools, managing wash-and-fold and dry cleaning feels less like a chaotic guessing game and more like a smooth, professional operation that your customers can trust.

Utility Monitoring and Management:

One of the biggest ongoing expenses for any laundromat is utilities — electricity to run all those washers and dryers, water for every load, and gas or electricity for heating. These costs can add up quickly, especially when lights stay on in empty areas, the air conditioning runs full blast during slow hours, or machines keep using power even when not needed. In the past, owners had to manually check meters, guess when to adjust the thermostat, or wait for a high bill at the end of the month to realize something was wasting energy. Artificial intelligence changes this by constantly watching how much electricity and water your business uses and making smart, automatic adjustments based on real patterns, such as how many people are inside at different times of day.

Popular AI-powered tools that work well for small businesses like laundromats include Powerhouse Dynamics SiteSage (or their Open Kitchen system adapted for commercial spaces), EnergyCAP Smart Analytics, and simpler smart device setups from Sense Energy Monitor combined with Google Nest or Ecobee smart thermostats and plugs for smaller starts. Powerhouse Dynamics uses sensors and AI to monitor your entire building, predict busy times, and automatically adjust HVAC (heating, ventilation, and air conditioning), lighting, and even suggest when to run certain machines. EnergyCAP pulls in data from your utility bills and smart meters, and then uses AI to spot waste, forecast future bills, and recommend changes. For a more affordable entry point into this technology, Sense Energy Monitor installs in your electrical panel and learns the unique power “signature” of each machine in your laundromat, while smart plugs can turn off lights or non-essential equipment when the space is empty. Many modern commercial washers and dryers from brands like Speed Queen also connect to these systems for even tighter control.

Value to the Operator: These systems reportedly deliver real savings of 10 to 20 percent or more on your monthly utility bills, which adds up to thousands of dollars a year for a typical laundromat. You get alerts on your phone about unusual spikes (like a leaky water valve or a machine left running), so you can fix problems early instead of paying surprise high bills. The AI also helps you run a greener business, which may attract eco-conscious customers and possibly qualify you for energy rebates or tax credits. Overall, it reduces stress because you are not constantly worrying about the meter, and the extra money saved can go toward new machines, marketing, or even a little profit for yourself.

Actionable Steps to Vet and Implement: Start by visiting the websites for Powerhouse Dynamics (powerhousedynamics.com) and EnergyCAP (energycap.com) to sign up for a free demo or consultation. Tell them about your laundromat’s size, number of machines, and typical hours so they can show you exactly how it would work for your setup. For a low-cost test, buy a Sense Energy Monitor (available online for a few hundred dollars) and install it yourself or with an electrician — it connects to your phone app and starts giving insights right away. Check simple reviews by searching “SiteSage for small business” or “EnergyCAP laundromat” on Google and YouTube. Compare pricing: many systems have monthly subscriptions starting around $50–$300 depending on features, but they often pay for themselves within the first year through lower bills. Once you choose a system, have an electrician help install any needed sensors or meters. Set up alerts for high usage and review the weekly or monthly reports in plain-language dashboards. Begin with just monitoring for the first month, then turn on automatic adjustments like smart thermostats. Keep your old manual habits as backup while you learn the new system. This careful approach lets you see real savings without big risks.

With these utility tools in place, managing your laundromat’s energy use feels less like a constant guessing game and more like having a smart, money-saving partner that works quietly in the background to keep your costs down and your business running efficiently.

The Near Future: What’s Coming Down the Chute?

In the next three to five years, AI will get even smarter and more useful in ways that feel almost like science fiction becoming everyday reality. One of the most exciting areas is the rapid advance of humanoid robots — machines designed to look and move like people, with arms, hands, legs, and the ability to perform complex physical tasks in real-world environments.

Tesla, under Elon Musk’s leadership, is making big strides with its Optimus humanoid robot. Optimus has already demonstrated capabilities like folding laundry, sorting objects, walking naturally, and handling repetitive factory tasks. Musk has described Optimus as potentially Tesla’s most important product ever, with goals for large-scale production in the coming years and a target price around $20,000–$30,000. The robot is being trained in real factory settings, and its AI allows it to learn new skills quickly and share that knowledge across the entire fleet of robots.

Meanwhile, companies in China are already deploying humanoid robots into real homes for testing. GigaAI’s SeeLight S1 (also called Shiguang S1) is one of the leading examples — a wheeled, two-armed humanoid robot that can load washing machines, hang laundry, fold clothes, chop vegetables, make beds, and handle other household chores. The company has begun rolling out the first 100 units into employee homes and plans wider deployment. Other Chinese firms like X Square Robot and UniX AI are also testing robots that sort items, fold laundry, clean, and adapt to new environments. These robots are learning from real-world use and getting better at delicate, varied tasks that once seemed too difficult for machines.

So how will this translate to laundromats and dry cleaning plants? In the near future, friendly humanoid robots could become valuable team members, and a likely replacement for some staff. Imagine a robot like an upgraded Optimus or SeeLight S1 stationed in your laundromat: it could greet late-night customers, sort incoming drop-off bags, load and unload washers and dryers, fold large volumes of wash-and-fold orders with consistent quality, and even package items for pickup…all while keeping an eye on customers coming and going. In dry cleaning operations, robots could handle pressing, hanging garments, and organizing inventory with minimal supervision.

Initially, these laundry robots won’t be promoted to fully replace human workers (though they certainly could take on the most tiring, repetitive jobs). Instead, they’ll act as tireless assistants that free up your staff to focus on building relationships with customers, offering premium services, solving special requests, and creating that warm community atmosphere your laundromat is known for. Think of it as having an extra pair of hands that never complains about lint, works through the night without overtime, and keeps going during peak holiday rushes.

For 24-hour laundromats, this could be game-changing — robots handling overnight sorting, machine loading, and basic maintenance while you sleep. As the technology matures and prices drop, even smaller operations may find it affordable to add one or two robots for the most labor-intensive tasks. Of course, these systems are still evolving, and challenges like handling delicate fabrics or adapting to messy real-world conditions remain. But the progress from companies like Tesla and the fast-moving Chinese deployments shows that practical, helpful laundry robots are moving from demos to real-world use much faster than most people expected.

The future isn’t about cold automation — it’s about smarter tools that make your business more efficient, profitable, and enjoyable to run while keeping the human touch at the heart of the customer experience.

Addressing the Fears: “But What About...?”

It is normal to feel worried about new technology. Some owners fear AI will take away jobs from real people or make the laundromat feel cold and impersonal. Others worry about the cost to start or what happens if the internet goes down. There are also concerns about private customer information being safe or the AI giving wrong answers sometimes.

These risks are real but manageable. AI might occasionally misunderstand a question, so always have a human ready to step in. To lower risks, begin with just one or two AI tools, keep your old ways as backup, and talk openly with customers about how AI helps make things faster. Many insurance companies now cover technology-related issues/errors, so check with yours. Remember, AI is simply a tool to help you, not replace your good judgment and warm personality that makes your laundromat special.

How to Utilize My Two Favorite AI’s Today: Grok & ChatGPT

Two of the AI’s we utilize with our businesses are Grok (i.e. Elon Musk/Tesla/X) and ChatGPT (OpenAI). You can talk to both like you are chatting with a knowledgeable friend. The basic account/service is free. Simply set up an account, and start by asking “Help me create a six-month plan to bring more families to my Indianapolis laundromat.” It will give you ideas, sample emails, produce flyers, and even develop a social media calendars written in plain English (or the language of your choice!). Need a funny post for Facebook? Just ask, “Write a welcoming, funny message for my Facebook laundromat page.” These AI services can even help you find and identify machine parts, supplies, service providers and more. For machine parts, simply take a picture of the part you are looking for and load it up. Ask AI, “where can I find this part new or used?” and in seconds you will have sources. Talk about a time saver!

You do not need any special computer skills. Just type or speak normal sentences and let AI help you brainstorm, solve problems, or even practice conversations with difficult customers. Many laundromat operators use AI to understand reports, create simple staff policies, and trouble shoot machine problems or error codes. The best part about AI is that they are available anytime, and can explain anything at a level that makes sense without confusing jargon.

The bottom line, friends: AI is not here to fold your socks by itself…yet, but it can make your laundromat run smoother, bring in more money, and let you enjoy the community side of the business. Start small with just one area that feels easiest or use it for the task that you most hate – maybe email marketing or equipment alerts – and build from there. You will be amazed at what AI can do. The spin cycle of success really is calling your name. Why not answer it today?

Your Fellow Time Traveler, The Laundry Guy….

Travor Lutz, Editor

The Laundry Operator Newsletter

Greetings fellow Laundry Operators! Welcome to part one of our deep-dive AI editions of The Laundry Operator Newsletter where we talk about something that might sound a little high-tech for a laundromat, perhaps a little scary at first… but can actually make running your laundromat easier and perhaps a little more fun. Today, we are going to explore how artificial intelligence – or AI for short – is changing laundromats right now and what it might look like in the near future. We will keep everything friendly, add a few laughs, and focus on real ways AI can help your business succeed.

Subscribe now

First, let us make sure we are all on the same page. The term AI is bantered around in the media, and many people are still not exactly sure what AI is. Artificial Intelligence is not a menacing robot from the movies that is going to take over the world (at least not yet ;). It is more like a super-smart group of assistants, made up of vast computing power in data centers around the world, that learn from information and patterns. AI learns by scouring the internet, media, books, and from observing human behavior. They are designed to respond to questions and data as a human would. They connect the dots, analyze patterns, and piece it all together in responses to our inquiries. And, just like you and I get better at folding clothes and troubleshooting machine errors the more we practice, the more we read, the more experts we listen to, AI gets better at helping with tasks the more data it sees.

There are dozens of AI systems, but the big names today that you will probably recognize are Grok, ChatGPT, Claude, CoPilot and Google AI. Many of these AI systems are smarter than any human PhD out there today and have access to vast troves of data no human could ever consume. AI can write books, monitor and trouble shoot laundry machines, calculate complex mathematical equations, answer customer questions in a human-like tone, develop your financial statements and tax returns, and even help you professionalize your laundromat operation. Thankfully, we do not need to be computer experts to use AI. Many AI tools are made for regular business owners like you and me, who run laundromats. These tools are often simple to implement into our business and do not cost a fortune to try.

Before we dive in…a word of Encouragement, Disclosure and Caution.

AI implementation is NOT necessary to run a successful laundromat. Laundromats have existed since 1934 when the first “Washateria” opened in Fort Worth Texas. Laundromats are not rocket science, and rocket science technology like AI, is not critical to your success. The goal in using AI is to make your days a little less stressful by using it to do the parts of the job that you don’t like or are not good at, giving you more time to take in a little golf. That being said, AI can be addictive when you begin considering how you can use it to your competitive advantage. If you are like me, you will quickly begin using it to do tasks you previously did not have time to do, and to explore subjects without a trip to the library. And finally, none of the company products named herein has paid for, encouraged us to include them, or even knows they are mentioned at the time of this writing. These services are being noted simply in context of the topic we are covering today. Now, let us dive into the practical ways you can use AI in your laundromat today.

AI in Your Laundromat Today: Practical Wins Across Operations

You do not need a college degree in technology or a huge pile of money to begin. Many of these ideas start with free trials or low monthly fees that pay for themselves quickly through saved time and extra sales. We will touch upon a number of examples one by one and for each, I will explain what the problem usually is, and how AI helps fix it in simple terms. We will also name some actual tools you can look up, tell you why it matters to your business, and give clear steps you can follow even if this is all new to you. This list is by no means exhaustive…as I write someone somewhere is developing a new AI function that we will soon use and will have to write about in the future.

Marketing – Email Campaigns and Promotions: A successful laundromat requires customers to come back again and again and for your business to come to mind whenever the customer needs what you offer. The old way of marketing might involve printing flyers to distribute door to door in your business area and hoping people then remember your specials. This takes a lot of time and does not always work well...and many Operators do not feel comfortable marketing. AI changes this by helping you send emails that feel personal and get read. Tools like Mailchimp are popular. Mailchimp is a service that lets you collect email addresses from your customers when they visit your laundromat in person or online when they sign up for rewards or promotions. Once you have those email addresses, the AI inside Mailchimp can write catchy subject lines like “Beat the Heat with Our Cool Summer Wash Special” and it will decide the best day and time to send the email message so more people open it. It can also look at who your regular customers are – maybe busy families or people living in apartments – and send them different personalized offers. For example, it might suggest a deal like “Buy five loads of laundry and get the sixth one half price on slow Tuesdays.”

The value to you as the operator is huge. Studies and real business stories show that good email campaigns can increase repeat visits by 20 to 40 percent. That means more money coming in without you standing outside handing out flyers all day. You save time, and your customers feel cared for because the messages seem made just for them.

Here are actionable steps to get started. First, go to the Mailchimp website (or one of their many competitors) on your computer or phone and sign up for a free account. Second, add a simple sign-up sheet at your laundromat counter asking for emails in exchange for a small discount on their next visit and/or the promise to notify them of upcoming specials and promotions. Third, import those emails into Mailchimp and use the AI writer tool by typing a short description of your business, such as “friendly laundromat in Dallas with wash and fold service.” Let it create three sample campaigns. Fourth, send a small test to 50 customers and see how many open it and visit. After two weeks, look at the results and make small changes. To vet this tool and others like it, read reviews or watch demonstrations on YouTube or Google by searching “Mailchimp for small business owners.” Start small so you feel comfortable. Your email list may become your most valuable commodity. It gives you direct contact with your customers…without social media censors, without newspaper restrictions and expenses…just fast, direct communication with your customers.

Website Development, Maintenance, and Optimization: Many laundromats still rely on a Facebook page or an old paper sign for basic information and store hours. Shockingly, many laundromats do not even have a basic website. That is like leaving cash on the laundromat folding table during peak rush hour. Customers today search on their phones for “laundromat near me open now”, and a good website helps them find you easily. I stopped counting at our laundromats how many times a new customer walked in and said they found our website on line and decided to try us out. AI tools like Wix ADI or Squarespace, or GoDaddy and many others make building a website simple. Back in the day when I was developing websites for my businesses, the process to develop a basic functional website was long and painful…and expensive. Today programs like Wix ADI asks you questions in plain English, such as “What does your laundromat look like?” and “What services do you offer?” Then it automatically creates a full website with nice pictures, contact information, and even directions from Google Maps.

The value here is that your site can be up and running in hours, not weeks, and your website will show up and be ranked higher when people search online, which brings in more new customers. It can also let people book wash-and-fold services right on the site, so you get orders even when the laundromat is closed. This reduces phone calls asking basic questions and makes your business look modern and trustworthy.

Actionable steps: Visit wix.com (or dozens of other similar sites) and click on the AI builder option. Answer the questions honestly about your laundromat location, 24-hour access, and friendly atmosphere. Let it generate the first version. Next, use the built-in tools to add photos of your clean machines and smiling customers. Check how it looks on a phone. If you want help polishing it or tweaking it and are not comfortable with the process, you can hire a local high school or college student for a small fee through a site like Upwork (it works like a temporary employment recruiting site). For one of our companies, we used a tech in China for a year that made all the updates and changes we needed to our website. This tech was fast, friendly, professional and affordable. Once you get the website looking like you want it, test it yourself for a week by pretending to be a customer searching for laundry services and ask friends or other business owners to do the same and give you feedback.

Managing Social Media Posts and Online Advertising: Social media platforms like Facebook and Instagram are where many of your potential customers spend time. Posting every day can feel like a chore when you are busy maintaining machines or helping customers. AI tools such as Canva’s Magic Studio or Hootsuite use AI to create ready-to-post pictures, video clips and marketing copy. You can type “Write a fun post about our laundromat’s lost sock collection” and it will create something funny like “Tired of single socks disappearing? Our lost and found box is legendary – come claim yours!” The AI can also schedule posts ahead of time and show you which ones get the most views and likes. These types of customer engagement that are fun, and sometimes irrelevant, help keep your business in front of your customer so that when they need you, they will quickly recall you and choose you instead of the other guy down the street.

For advertising, the AI on Meta (the company that owns Facebook) can decide who sees your paid ads so they target people living nearby whom might need laundry help. This brings more foot traffic without wasting money on ads to unlikely laundromat users. The value to the operator includes saving hours each week and seeing real increases in new customers and engagement. Some laundromat owners report doubled weekend visits after consistent funny posts featuring their laundromat.

Actionable steps: Create free accounts on Facebook and Instagram if you do not have them. Then try Canva.com for free and use the Magic Write feature. Create five posts and schedule them. Spend $50 on a test ad targeting people within five miles of your laundromat. Check the results after one week. Adjust your posts based on what worked. YouTube has lots of short tutorial videos on effectively using Canva, Facebook and Instagram and how to start with a very small spending budget. If you are not comfortable setting up ads on Facebook, again sites like UpWork.com or Freelancer.com can help you find real people to assist in setting up your ads so that you can take over the process after they perform the initial setup and get you started.

AI Voice Agents for Incoming Calls: Phone calls still matter, but answering them all the time pulls you away from the front counter. AI voice agents are like smart answering machines that can actually talk and understand questions. Services like Verizon’s Conversational Ai or the laundry-focused platform CleanCloud lets the AI answer questions such as “Do you have machines available right now?” or “How much does wash-dry-fold cost?” It pulls information from your system in real time and can even text you a summary of the call.

The big value is never missing a customer again, even at 2 a.m. Your staff stays focused on people who are physically there, and phone customers get fast, polite answers delivered exactly as you would if you could physically answer every call. Additionally, for Laundromats in multicultural settings where English may be a second language, the AI voice agents can cut through the language barrier by offering customer assistance in the customer’s native language.

Actionable steps: Search for “CleanCloud laundromat software” and book a free demo. Tell them your typical questions and pricing. Test the voice agent with friends calling in. Start with basic features and add more later.

AI Kiosk Agent to Greet Customers and Answer Questions: A kiosk is like a smart touchscreen computer assistant standing in your laundromat. These are still rare today in the laundromat industry, but have a viable application as the AI industry matures and prices become more competitive. Companies like Popshap and IBM offer AI that can be used inside your laundromat on a kiosk that can greet people with “Welcome! Looking for an open washer? Follow the lights to number 7.” It can explain how different cycles work or show prices, give washer load size recommendations, etc.

Value: Customers feel helped right away, lines move faster during busy times, and your staff can handle more important tasks. Many customers will also feel more comfortable asking a question they fear is “stupid” to an AI machine, rather than asking a live person.

Actionable steps: Begin with a simple tablet on a stand running a free chatbot software. Place it near the door. Teach it your layout and rules. Ask customers for feedback after a couple of weeks and observe customer interaction.

Customer Engagement and Communication: Keeping customers happy means staying in touch and providing them immediate assistance to make their laundry experience fast and easy. AI chatbots can send friendly texts like “Your clothes will be ready by 4 p.m. today!” or ask for quick feedback after a visit.

Value: Customers return more often because your Laundromat is no longer a “chore” and they have assistance in getting their laundry done quickly.

Actionable steps: Connect your phone number to a service that allows automated messages. Start with simple reminders and build from there.

As you can see we are only scratching the surface of what AI can do for the Laundry Operator! We will pick up the discussion next week in part 2 and dive into AI equipment monitoring, Wash & Fold management, AI Dynamic Pricing and actual Robotic staff!

Until then, stay smart and keep those dryers spinning!

Your Laundry Buddy,

Travor Lutz, Editor

The Laundry Operator Newsletter

Greetings fellow laundry operators!

Today we are going to sort out one of the most common questions I hear today….Is now a good time to buy or start a laundromat…or for that matter, any business? In an era of geopolitical fireworks, economic headwinds, and enough societal daily drama to fill a soap opera, the humble laundromat stands as one of those rare businesses that people still need, recession or riot. Clean clothes don’t care about stock market crashes, utility spikes, or political theater….but none the less, these factors may impact your new venture. As you ponder dipping your toes—or your entire investment portfolio—into the coin-operated waters, let’s navigate the roaring lions, prowling tigers, and lumbering bears of 2026 with data, expert perspectives, and a dash of levity. Because if the world is ending, at least you’ll go out with fresh socks.

Subscribe now

The Big Picture: Resilience in the Face of Global Chaos

Major military conflicts, political violence, and global instability dominate headlines. When things look scary in the world of business, there are three financial gurus I like to consult (no, I don’t have their phone numbers…but there are plenty of media interviews out there with these guys) and I regularly check out what they are saying to help me navigate the chaos. My team is Warren Buffett, Edward Dowd and Martin Armstrong.

Edward Dowd is a seasoned Wall Street veteran and former portfolio manager at BlackRock, where he successfully managed a $14 billion growth equity portfolio (that’s a lot of quarters!) for over ten years. As the founding partner of Phinance Technologies, a global macro alternative investment firm, Dowd has built a reputation for his data-driven analysis of economic cycles, demographic trends, and risk factors in the markets. He is frequently cited for his early and bold warnings about recessions and structural economic challenges, making his insights particularly relevant during periods of uncertainty. You may ask, what does Ed know about laundromats? Good question, and I don’t know the answer…but Ed is a smart guy with his hand on the pulse of the economic universe, and since we are trying to determine if this is the right time to invest in the laundry industry, Ed is someone to listen to. Edward Dowd has been sounding alarms about a significant U.S. recession in 2026, driven by housing corrections, an AI bubble unwind, and credit cycle rollover, potentially leading to a 40-50% market correction and a moderate-to-severe slowdown in the US and global economy. Ed notes that manufacturing job growth has already turned negative and housing, which represents up to 25% of the economy, is going south with new tenant rents declining and home prices falling in many markets. He also notes that consumer spending is weakening and delinquencies across credit lines is rising (i.e. credit cards, auto loans, etc.). Regarding investments, Dowd recommends staying in cash as the best near-term defense.

I also like to “consult” Martin Armstrong… a well-known economist, market analyst, and creator of the Economic Confidence Model, a proprietary system that forecasts economic cycles, volatility, and major turning points. With decades of experience studying global markets, debt cycles, and geopolitical risks, Armstrong’s insights are closely followed by investors and business owners seeking to understand broader economic patterns and potential shifts in the coming years. Martin Armstrong’s Economic Confidence Model points to heightened volatility and a “panic cycle” in 2026, with risks of sovereign debt issues and geopolitical escalation, particularly in Europe. Armstrong has publicly stated that the U.S. remains the strongest major economy relative to its peers, but it enters a volatile period of stagflation, debt stress, and political upheaval that builds toward a much larger global turning point around 2032.

Last but not least, Warren Buffett is part of my laundry team…. a man who is widely regarded as one of the most successful investors of all time and was the Chairman and CEO of Berkshire Hathaway. With a career spanning over six decades, Buffett has navigated numerous recessions, market crashes, and periods of global uncertainty while delivering remarkable long-term returns. Known for his disciplined, value-driven approach and preference for simple, understandable businesses with strong customer demand (like laundromats!), his strategies are frequently studied and referenced during turbulent economic times. What is telling about Warren Buffett’s investment mindset today is what he is not doing….investing! As 2026, Warren Buffett’s Berkshire Hathaway is sitting on a record $397 billion in cash and short-term U.S. Treasury bills which is roughly equivalent to the entire annual economic output (GDP) of most countries….only about 25–30 nations on Earth produce more than $397 billion in goods and services in an entire year. This massive “dry powder” (cash not deployed into stocks or major acquisitions) represents the largest corporate cash hoard in U.S. history! Why is Warren hording this much cash and investing it? He believes there are economic headwinds coming that will provide greater investment opportunities in the future. Warren has famously been quoted as saying that he likes to buy businesses “when they’re on sale” during periods of fear and pessimism.

For laundromats, global turbulence is more background noise than a direct torpedo. Wars and instability disrupt supply chains and energy markets, but they don’t eliminate the universal need for clean laundry. In fact, during past crises, essential services like laundromats have shown remarkable staying power because they serve renters, lower-income households, and busy urban dwellers who can’t afford or don’t want the hassle of in-home machines. Industry revenue in the U.S. is projected to reach around $7.2 billion in 2026, with a modest CAGR of about 1.5-1.6% through the period, anchored by resilient urban demand despite broader economic pressures.

The key to success for a laundromat is location and adaptation. High-crime metropolitan areas, particularly in left-leaning cities with a lenient criminal justice policy, elevated theft and violence, pose real risks: vandalism, theft of coins or machines, loitering, and safety concerns for customers and staff. Small businesses broadly report crime as a major threat to viability, with organized retail theft alone costing billions. In such environments, a laundromat could face higher insurance premiums, security costs (cameras, attendants, app-based monitoring), and potential revenue loss from deterred customers. Humorously, your biggest competitor might not be the shop down the street but the guy who thinks the change machine is an ATM. Mitigation through technology, insurance, and choosing safer or suburban-adjacent spots with strong renter demographics is essential. Political and social upheaval adds uncertainty, but it doesn’t halt dirty laundry—though it might increase demand from displaced populations or those cutting discretionary spending.

Utility Pressures and Operational Realities

Rising utility costs—fueled by scarcity, supply disruptions, data center demand from AI, and general inflation—represent a more immediate squeeze. Utility providers have filed billions in rate increase requests in early 2026, with electricity prices already jumping notably in many areas. Laundromats are energy hogs; water, gas, and electricity can eat 20-30% or more of operating expenses. Dowd and others warn of broader inflationary or deflationary swings depending on how the recession unfolds.

Yet operators are fighting back with energy-efficient machines, smart scheduling, remote monitoring, solar panels, on-demand hot water heaters and app-based payments that optimize usage. The industry is evolving toward more sophisticated operations, with trends in 2026 emphasizing technology to contain costs and improve cash flow. If you’re starting or buying a laundromat, factor in modern equipment upgrades heavily—the ROI on efficiency can wash away some of those rising bills. As one industry voice put it, 2026 could shape up strong for well-run laundromats precisely because rising home utility costs push more people away from owning their own laundry equipment and toward convenient, shared laundry facilities.

Increased taxes and restrictions in large metros add another layer. Survival here depends on scale, service differentiation (pickup/delivery, wash-and-fold, memberships), and possibly relocating to more business-friendly areas. Laundromats tied to multifamily housing or dense renter populations tend to fare better.

Economic Downturns: Recession-Proof or Recession-Resistant?

Projections of a stock market crash, U.S. economic downturn, rising unemployment, and slowing growth loom large. Dowd sees structural cracks already forming, while Armstrong anticipates significant volatility through the late 2020s. Buffett’s advice shines here: be greedy when others are fearful, focusing on understandable businesses with moats. Laundromats fit that bill—they’re necessity-driven, often cash-flow positive, and benefit from “trading down” behavior in tough times as consumers skip luxuries but still need clean clothes.

Historical patterns and current industry data show that laundromats tend to hold up well — and can even increase in volume — during economic slowdowns and recessions. Even when unemployment rises and people have less money to spend, the demand for clean clothes doesn’t disappear. Most renters, lower-income households, and busy urban residents still need access to laundry services because they don’t own washing machines at home. This “sticky” renter demand helps keep customers coming through the door even as the broader economy weakens.

While the laundromat sector grows slowly compared to flashy industries, it has shown remarkable consistency through tough times. Yes, there are some risks: customers may cut back on extra services like wash-and-fold or drying add-ons, and laundry owners might delay replacing old machines. However, the core business — people washing and drying clothes — remains strong and reliable.

Well-managed laundromats with low operating costs, energy-efficient equipment, and modern technology (such as app payments and remote monitoring) can continue to deliver solid profits. Once properly set up and systematized, many of these businesses can even run as semi-passive investments, requiring less day-to-day attention from the owner.

Commercial Real Estate: A Silver Lining?

The struggling commercial real estate sector offers a potential bright spot. With office vacancies lingering and some distress in certain assets, 2026 presents opportunities for laundry operators to renegotiate rents or to acquire properties at better terms, especially for necessity-based retail like laundromats. Locations near apartment buildings or in busy city neighborhoods should continue to have steady customer demand. Experts expect more buying and selling of properties, with improving investment returns in the stronger, more reliable areas.

Buying the real estate underneath your laundromat could hedge against rent hikes and build equity, particularly if you secure favorable financing before potential rate shifts. However, diligence on local markets, foot traffic, and demographics is non-negotiable—location remains king (or at least the royal launderer).

Final Spin: Thoughtful Entry in Turbulent Times

Is now a good time? It depends on execution, capital, and risk tolerance, much like any business. The laundromat industry isn’t immune to macro forces—utilities bite, crime demands vigilance, recessions test resilience, and global instability adds noise—but its essential nature provides a defensive edge that speculative ventures lack. Experts like Buffett remind us that boring, cash-flowing businesses with real customer demand often outperform in chaos.

Approach with eyes wide open: prioritize modern, efficient setups; choose locations carefully; build in buffers for utilities and security; and focus on systems that allow scalability or semi-absentee operation. The world may have lions, tigers, and bears, but with preparation, your laundromat can be the sturdy cabin where people keep coming back—no matter the storm outside.

Stay soapy, operators. The spin cycle continues.

Travor Lutz, Editor

The Laundry Operator

Greetings Fellow Laundry Pros!

If you’ve poured years into building or running your laundromat, the idea of selling it can feel like a mix of relief and a little heartbreak. This business has been your baby…humming machines, loyal customers hauling baskets of dirty duds in at all hours, and that satisfying cha-ching of steady cash flow. But whether you’re ready to retire, expand into something new, or just move on, preparing it for sale the right way can mean the difference between a quick, profitable exit and a long, frustrating process that leaves broken dreams and money on the table.

For this Laundry Operator deep-dive, I’ve drawn from conversations with laundromat industry experts, seasoned brokers, small business gurus who’ve seen hundreds of these deals go through, as well as my own experience in “cashing out”. Our collective wisdom boils down to this: treat the sale like you’re preparing your home for a premium buyer—clean it up, fix what’s broken, document everything, and highlight what makes it shine. Be brutally honest with yourself along the way. Laundromats are attractive investments because of their semi-passive nature and recession-resistant demand, but many buyers are savvy and will sniff out problems fast.

Let’s walk through how to maximize value, avoid common pitfalls, and set yourself up for a smooth, fast sale.

Start Early: Pre-Sale Preparation (12–24 Months in Advance)

The smartest sellers don’t wait until they’re burned out or facing a lease expiration. They start preparing 12 to 24 months ahead. Why so far out? Because buyers pay top dollar for well-run turnkey operations with strong financials, modern equipment, and minimal risk. This is what you want to sell.

Here Are The Key Pre-Sale Steps:

• Get your financial house in perfect order. Buyers and their lenders live and die by the numbers. Compile at least three years of tax returns, profit & loss statements (P&Ls), bank statements, and detailed expense reports. Track everything: utility bills (a huge red flag if they don’t correlate with claimed revenue), collection reports from card systems or coin counters, maintenance logs, and payroll (even if it’s mostly you).

• Deep clean and upgrade curb appeal. As the saying goes, a picture is worth a thousand words. Your laundromat’s first impression is everything, both to the potential buyer and of course to your customers. Paint the walls, epoxy the floors, fix lighting, and ensure the place looks inviting. Add or refresh amenities like Wi-Fi, make sure the vending machine is full (by the way, when was the last time you wiped off the top of the pop machine?), folding tables, signage (ditch the ratty paper signs) and seating. A dated or dirty store screams “deferred maintenance” and tanks perceived value. The first laundromat I purchased had literally dozens of poster board, hand written signs hanging EVERYWHERE. Rules, Wash & Fold pricing, warnings about too much detergent in machines…you name it. If the previous operator had a thought pop into their head, they got out the sharpie marker and made a poster board. This “look” is not what you want to sell!

• Service and modernize equipment. Replace or refurbish older machines. Newer equipment (under 10 years) commands higher multiples because it means lower immediate repair costs for the buyer. Document all warranties—many commercial ones from brands like Speed Queen or Huebsch are transferable with proper records. If you have refurbished equipment, keep records of who, what and when the equipment was refurbished.

• Secure a strong, assignable lease. This is often the single biggest value driver (or killer). Aim for at least 10–15 years remaining with reasonable rent and clear assignment rights. Buyers want stability; a short lease or a landlord who hates transfers will scare them off.

• Verify and normalize income. If you’ve been underreporting cash, this is the moment of truth. More on that below, but honest reporting builds credibility. Use utility data and collection reports to back up your figures.

Humor break: One broker joked that some sellers treat their financials like a dating app profile—everything’s perfect until the buyer asks for receipts. Don’t be that seller.

Understanding Valuation: What Makes Your Laundromat Worth More?

Laundromats are typically valued on a multiple of Seller’s Discretionary Earnings (SDE) for smaller operations or EBITDA for larger ones. Recent data shows sold laundromats averaging around 2.7x to 4.5x SDE, with stronger ones hitting higher. Revenue multiples often land between 0.9x and 1.6x or so, depending on condition and location.

Factors that boost value:

• Consistent or growing revenue with verifiable data. Ideally your revenue trend line will look like the chart of high flying stock.

• Low owner involvement (semi-absentee is gold). If you are working your store 60 hours a week, buyers looking for semi-absentee ownership will flee.

• Modern, efficient equipment and low utility costs. For a sale, newer is better, however I successfully sold a couple of my laundromats with old ancient equipment which were still shiny, clean and well maintained.

• Add-on revenue streams like wash-dry-fold, pickup/delivery, or vending.

• Prime location with high renter density and parking.

What tanks valuations: Old machines with obvious deficiencies (dented, uncleaned, non-working), poor records, short lease, high staff competition, or deferred maintenance. Brutal honesty: If your place needs $50k in immediate fixes, buyers will discount the price by more than that to cover their risk and hassle.

Should You Spin Off Your Wash & Fold Business?

If your laundromat has a thriving Wash-Dry-Fold (WDF) or drop-off service alongside the self-service coin (or card) operation, you face an interesting strategic question: Does it ever make sense to sell them separately?

Industry experts, brokers, and operators generally agree that a strong WDF business is a major value driver — often delivering higher margins than pure self-service. It can command $1.25–$2.50+ per pound while using the same equipment during off-peak hours, creating a profitable “bonus” revenue stream on top of machine income. Many well-run operations see WDF contributing 20–40% or more of total revenue, with strong customer loyalty and growth potential through pickup/delivery routes.

Can you sell them separately — and should you?

Technically, yes. The WDF operation can function independently. It relies more on labor, customer relationships, routing systems, and branding than on the physical storefront. Some owners have structured deals where the drop-off business is sold as a separate entity, sometimes with a lease or usage agreement for the machines and space. One experienced operator even designed their layout specifically to allow selling the drop-off side while collecting rent from the new owner.

Viability for a higher total price?

In practice, spinning them off rarely maximizes your overall proceeds for several reasons:

• Synergy sells better. Buyers (especially investors) love the combined model. Self-service provides semi-passive, recession-resistant cash flow, while WDF adds higher-margin, scalable service revenue. Selling them together usually commands a stronger multiple because the buyer inherits a diversified, turnkey operation with cross-selling opportunities and built-in customer base.

• Valuation math. A thriving WDF business often trades at a premium when attached to the laundromat due to shared overhead (rent, utilities, equipment). Separating it may result in two smaller businesses, each potentially selling at lower multiples or attracting fewer qualified buyers. The self-serve laundromat without WDF might look less attractive or require discounting.

• Operational realities. WDF benefits enormously from the laundromat’s location, visibility, and existing infrastructure. Moving it elsewhere increases costs and risks losing momentum. Buyers of a standalone WDF operation may discount heavily for relocation risk or the need to build new relationships.

When it might make sense to separate:

• If the WDF side is disproportionately large and profitable (e.g., dominant revenue driver with strong commercial accounts and delivery routes) and you have a ready buyer for that standalone service business.

• If the self-serve side needs significant updates that would disrupt WDF operations during a sale.

• If you want to retain the higher-margin WDF operation yourself while exiting the more hands-off coin side.

Brutal honesty from the experts: Most brokers advise against separation unless there’s a compelling reason. The whole is typically worth more than the sum of its parts in this industry. A clean separation requires meticulous record-keeping (separate P&Ls, customer lists, contracts), clear lease agreements for equipment/space usage, and careful transition planning — all of which add complexity and time to the sale.

If your WDF business is booming, focus instead on documenting its performance thoroughly. Highlight growth trends, customer retention, and profit margins. This makes the entire laundromat more desirable and can justify a higher overall multiple rather than trying to split the baby.

What Buyers Are Really Looking For

Most buyers—whether first-timers chasing semi-passive income or investors scaling portfolios—want reliability. They look for:

• Verifiable cash flow. They’ll cross-check utilities against revenue. Spikes in claimed income without matching water/electric bills are instant red flags.

• Low maintenance surprises. Detailed service logs and recent equipment upgrades signal a well-run operation. Even if your records are hand written in a spiral notebook, the fact the notebook exists, will provide a buyer confidence that you were paying attention to the maintenance of the machines.

• Strong lease and location. Demographics matter: areas with lots of apartments, no nearby competition, and good visibility.

• Growth potential. Untapped services or outdated systems that they can improve. Be prepared to share ideas with the prospective buyer to improve the current operations.

• Clean books and easy transition. Minimal owner dependency and good staff (if any).

Buyers hate uncertainty. A clean, documented store sells faster and closer to asking price.

Essential Documents and Reports

Have these ready in a “data room” (physical or digital folder):

• Three years tax returns and P&Ls.

• Lease agreement and amendments.

• Equipment inventory with serial numbers, ages, and maintenance history.

• Utility bills (12–24 months).

• Vendor contracts and insurance policies.

• Recent appraisals or valuations (professional is best).

• Bank statements and collection reports.

Organized records speed due diligence and build trust. If you are digging, delaying and not producing documentation, this is a red flag.

The Cash Income Question: Be Honest (and Smart)

This one comes up often, and it’s tricky. Underreporting income over years creates a problem when selling: your documented SDE (Seller’s Discretionary Earnings) is lower, so valuation suffers. Buyers won’t pay for “off-the-books” cash without ironclad proof, and lenders definitely won’t finance based on it.

Will you be in trouble? Switching to full reporting suddenly can raise IRS flags if not handled properly. Consult a CPA or tax attorney before listing your laundromat. Many experts advise normalizing financials over time or being transparent with buyers while relying on verifiable proxies like utilities. Don’t guess here—get professional advice tailored to your situation. The collective wisdom is clear: clean books sell for more and close faster. The short-term tax savings of underreporting can cost you big on exit. Personal note: We count every quarter of income…and report it. While facing the IRS and explaining why you did not report income accurately would be scary, we are more fearful of standing before our Creator and having to explain our dishonesty. Let your conscious be your guide in this area.

Should I Use Professional Help to Sell? A Broker? An Attorney? A Title Company?

Broker vs. DIY: A good laundromat-specialized broker often justifies their commission (typically 8–10%) by accessing better buyer pools, handling confidentiality, negotiating, and speeding the process. They help price correctly and manage showings. FSBO (For Sale By Owner) is possible but time-consuming and risks lower offers or legal missteps. Many successful sellers use brokers for complex deals. When we sold one of our laundromats, I handled the sale. I fielded HUNDREDS of inquiries from laundromat-dreamers which took hours and hours per week. Had I had access at the time to a “good” broker, I would have gladly handed over the sales process to them.

Attorney: Yes, we strongly recommended seeking legal counsel. They review contracts, handle lease assignments, disclosures, and contingencies. Don’t skimp here and instead use Google Ai —bad paperwork can derail closing or create post-sale liability.

Title Company: If real estate is involved (you own the building and are selling it as part of the deal), yes. Even for business asset sales, they help with liens, UCC filings, and clean transfer.

Common Red Flags and Deal Killers

Buyers will walk away (or demand hefty discounts) for:

• Inconsistent financials vs. utilities.

• Old or poorly maintained equipment.

• Short or non-assignable lease.

• Uncooperative landlords.

• Deferred maintenance (mold, roof issues, plumbing).

• No records or “trust me” stories.

• High competition or declining neighborhood.

Fix these proactively to avoid leaving money on the table and wasting time.

Should You Offer Seller Financing?

Often, yes—it can make your deal more attractive and command a higher price or faster sale. Buyers like it because banks are cautious with cash-heavy businesses. Sellers benefit from interest income, tax spreading, and a safety net (you can reclaim if they default). Common structures: 20–50% down, 5–7 year note at market rates. Weigh the risk—only do it if you have thoroughly vetted and trust the buyer and are comfortable with the deal structure protections. Disclosure: I had to sue a buyer once to get the balance of my money. Despite winning the case, the cost of attorney’s and lost time made it a shallow victory.

Marketing Mistakes That Sellers Must Avoid

• Overpricing based on emotion rather than comps. Yes, it’s your baby, but price according to the reality of your numbers and your market.

• Poor photos or vague listings (“great potential”, “take it to the next level”, etc. without any qualifying information or data).

• Hiding issues instead of disclosing early. I like to disclose everything…I want the sales process to go smooth with no buyer’s remorse, and a clear conscious on my side of the transaction.

• Not preparing for due diligence. Be prepared with your reports, financials, tax docs…everything. The faster you produce what is asked for, the more comfortable the buyer will be with the purchase.

• Telling everyone (including staff/customers) too soon, causing disruption. You know the saying, lose lips sink ships? Disclosing too much to too many people can sink your deal. Until the closing, everyone involved in your business is on a need-to-know basis only.

• Market your laundromat when the business is performing well, not in distress.

How Long Should the Sale Take From Marketing to Closing?

Expect 6–12 months total, though well-prepared laundromats can move faster (median around 4–5 months in some data). Marketing: 1–3 months to find a serious buyer. Due diligence: 30–60 days. Closing: another 30–45 days, depending on financing and lease approval.

When Do I Tell The Landlord, Vendors, and Customers That I Am Selling?

Landlord: Ideally after a strong LOI (letter of intent) but before full commitment. Leases often require consent for assignment or renegotiation of the lease by the buyer. Early informal chats can prevent surprises, but full disclosure too soon risks them interfering or raising rent. Get legal advice.

Vendors/Contractors: After a solid contract, as needed for transition. If you have maintenance agreements or contracts in place, review them carefully to see how/if these will transfer to the buyer, and if they do, be sure to disclose this to the purchaser.

Customers/Staff: Usually after closing to minimize disruption. In many cases, the new owner will want to keep the existing staff, so be prepared to share the good news that they can stay on with the new owner. This will put them at ease when you disclose the sale.

Is The Sale “As Is”, Are There Warranties? What About Machine Failures?

Most sales are “as is” with disclosures. You’re not offering a full warranty on the business. For machines failing right before/after closing: Have a clear inspection period in the contract. Escrow holdbacks or repairs negotiated pre-closing are common. Document everything. As per Murphy’s Law, we sold one laundromat and the day before closing one washer motor burnt up. Per our contract, we replaced the unit with a “like” refurbished unit and everyone was happy.

Legal disclosures: These vary by state, but generally disclose known material defects (structural, environmental, lease issues, equipment problems). Honesty protects you from post-sale lawsuits and a guilty conscious! Consult your attorney for your jurisdiction.

Should I Offer Training? Absolutely!

Including a transition period (1–4 weeks) and training is standard and boosts buyer confidence. It helps them hit the ground running and reduces their perceived risk—potentially increasing your sale price. Remember, this is your “baby”, and you want it’s new parents to take good care of it. A well-structured hand-off and training will ensure that your buyer is happy, your staff is content, and your customers keep coming back.

Final Thoughts: Position for Success

Selling a laundromat profitably requires preparation, transparency, and patience. Clean it, document it, fix it, and market it honestly. The buyers out there—investors hungry for stable cash flow—are ready when your store looks like a no-brainer.

You’ve built something valuable. With the right steps, you can hand it off successfully and walk away with the rewards you deserve. Start that preparation checklist today. Your future self (and your bank account) will thank you.

Until next week, keep those washers spinning and customers happy!

Your Laundry Guy,

Travor Lutz, Editor

The Laundry Operator Newsletter

Disclaimer: This information draws directly from industry benchmarks, broker insights, and common practitioner experiences. Always consult your own CPA, attorney, and broker for personalized advice.

Greetings fellow laundry operators and small business enthusiasts!

As a longtime laundromat dreamer who took decades to take the plunge and buy my first store, I’ve pondered the franchise question more times than quarters in a change machine. Back in the 1980’s when I first started looking at laundromats as an investment, choosing a “franchise” laundromat was not an option. But today, investors must ask the question… “Should I buy into a branded laundromat franchise, or go independent?” It’s a high-stakes decision in an industry known for resilient cash flow—but one where the wrong choice can leave you spinning your wheels financially.

Today, we’re diving deep into the major players, including data from recent franchise requirements: Speed Queen Laundry, LaundroLab, WaveMAX Laundry, Lapels Laundromat, and Spin Doctor Laundromat. There will be No glossy brochure hype here—just real talk on costs, control, risks, and when (or if) franchising actually makes sense.

Subscribe now

Why Do People Buy Laundromat Franchises? Pros, Cons, Strengths, Weaknesses

First-timers and absentee investors often buy franchises for the perceived safety net: brand recognition (even if limited in the laundry industry), proven playbooks, site selection guidance, vendor deals, and training and marketing support. In a business where customers prioritize clean machines and convenience over fancy names, this can reduce the learning curve.

What are the advantages of a Laundromat Franchise?

• Turnkey systems, including modern card/app payments, remote monitoring, and store layouts.

• Easier access to SBA financing and lender networks.

• Peer support and bulk purchasing power.

• Structured training that helps novices avoid costly rookie errors.

• Potentially faster ramp-up and higher resale appeal for multi-unit operators.

What are the disadvantages of a Laundromat Franchise?

• Fees that bite hard: Royalties and ad funds erode margins in a high-fixed-cost business (rent, utilities, and repairs).

• Rigid operational controls limit local innovation.

• High capital requirements compared to buying or retrofitting an independent store.

• Long-term lock-in with renewal risks.

• Brand reputation tied to other franchisees’ performance.

Humor alert: A franchise is like joining a country club where the dues keep rising, the rules are strict, and the club can change the bylaws whenever it wants. It can be rewarding, but you’re not the one setting tee times.

Initial Costs, Ongoing Fees, and the Real Numbers

Laundromat franchises are capital-heavy. Here’s a breakdown based on Franchise Disclosure Documents (FDDs), franchisor sites, and industry data (always review the latest FDD yourself—these are current approximations as of 2025-2026 info):

Speed Queen Laundry: Franchise fee ~$30K–$49.5K. Total investment often $1.16M–$1.98M+. Minimum cash/liquidity: $300,000. Net worth: $2,000,000. Royalties ~4-6%, plus marketing fees ~1%. High barriers reflect their equipment manufacturing tie-in.

LaundroLab: Franchise fee $49.5K. Total ~$1.18M–$1.72M. Cash: $500,000. Net worth: $1,000,000. Royalty 6% (possible early waivers), brand fund 1-2%. Premium, staffed model with amenities.

WaveMAX Laundry: Franchise fee ~$49.95K–$54.9K. Total investment $351K–$1.5M+ (typically $1M+). Cash: $400,000. Net worth: $1,000,000. Royalty ~6%, ad fund up to 1%. Promotes semi-absentee.

Lapels Laundromat (hybrid with dry cleaning roots): Franchise fee ~$55,000 (some reports $40K–$55K). Total investment $907,905–$1,711,738 (or lower ranges in hybrid models ~$800K–$1.5M). Cash/liquidity: $165,000 (image data; some sources note $125K+). Net worth: $350,000. Often 5-6% royalty + up to 1-2% marketing. Leverages existing dry-cleaning infrastructure for multiple revenue streams (pickup/delivery, garment care). More accessible entry for some but still a heavy build.

Spin Doctor Laundromat: Franchise fee ~$25K–$30K. Total investment $230K–$1.4M (models from ~$390K–$1.4M typical). Cash: $70,000–$100,000. Net worth often $300K–$500,000 (not always public). Royalty 6%, marketing ~1-1.5%. Veteran-owned, coinless, modern focus with Electrolux equipment emphasis. Lower entry point makes it appealing for smaller footprints or test locations.

Brutal honesty on fees: In a business with typical gross margins of 30-45% (before royalties), a combined 6-8% royalty + ad/tech fees can equal $30K–$80K+ annually per store at solid volumes. Independent laundromat owners avoid this entirely but miss negotiated vendor discounts.

Marketing/licensing fees generally run 1-2% across these brands, often with required tech platform use.

How Does Financing Work?

SBA 7(a) loans are common, covering 70-80% for qualified buyers with strong credit, experience, and franchisor approval. Equipment financing is often separate. Expect 20-30%+ cash down. Franchisors provide lender intros, which can help, but underwriters scrutinize personal net worth and liquidity closely—which is exactly why those high requirements exist. Run your own conservative models.

Franchise Term and Expiration Realities

Standard initial term: 10 years, with renewal options (often 5-10 years each, subject to conditions like upgrades and “good standing”). At expiration, there are typically no automatic rights. You may need to remodel, pay renewal fees, or de-brand. The Franchisor often has approval rights on transfers/sales and right of first refusal. This is where leverage tilts heavily toward the franchisor.

Failure Rates: Franchised vs. Independent

Laundromats overall enjoy strong survival rates—often cited at ~95% over 5 years due to essential demand and recession resistance. Franchised units may edge higher for novices thanks to systems, but data is limited and self-reported. Independents fail more from poor management, deferred maintenance, or bad locations, but experienced operators with full cost control often outperform. High resale turnover exists in both, but franchises aren’t immune to fee pressure on marginal stores.

Franchisor Control Over Daily Operations

Expect significant oversight across all areas of operation: approved equipment/suppliers (heavy push toward specific brands), store design, pricing guidelines, cleaning standards, hours, payment systems, uniforms, and reporting. Audits and mystery shops are standard. Lapels and Spin Doctor emphasize modern/tech-forward experiences but still mandate compliance. Great for consistency and hands-off owners; frustrating if you are a true entrepreneur and want to test local ideas like unique services or pricing experiments.

Are Franchises Reputable? What About Legal Cases, BBB and Trustpilot ratings?

Public franchisee-vs-franchisor lawsuits for these specific laundromat brands are relatively limited—no massive class actions noted. General industry disputes (territories, fees, performance) occur. Lapels (tied to dry cleaning) has mixed customer reviews on service but no standout systemic franchisee litigation highlighted. Spin Doctor, being smaller/newer, has low profile. BBB profiles for corporate entities are often unaccredited with typical customer complaints around machine issues/refunds. Trustpilot varies by location; always dig into current franchisee feedback via FDD Item 20. Note: Item 20 of the Franchise Disclosure Document (FDD) is a critically important, legally mandated section that provides a 3 year historical breakdown of the franchise’s growth and turnover. It acts like a scorecard that reveals closures, transfers and terminations.

Can I Negotiate with a Laundromat Franchise? What are the Key Negotiation Points for Franchisees?

Never sign the standard FDD agreement cold. Key areas to push (with the help of your franchise attorney):

• Lower or capped royalties (especially years 1-3).

• Stronger territory exclusivity.

• Equipment/supplier flexibility or guaranteed pricing.

• Marketing fund transparency and local input.

• Favorable renewal terms and de-branding rights.

• Limited personal guarantees.

• Performance-based support escalations.

• Transfer/sale flexibility.

Here is the Essential Question Checklist to Study Before Signing:

1. What does Item 19 of the FDD show for average unit volumes/profits (by year, by market)? Item 19 is the Financial Performance Representation or Earnings Claim. Franchisors are not legally required to provide financial date, but if they do, it must have a reasonable basis and include their assumptions in providing the numbers.

2. How many franchisees exited in the last 5 years and why? (Call them all)

3. Total all-in fees as a percentage of gross?

4. Equipment mandates, maintenance responsibilities, and upgrade timelines?

5. Who pays if the site underperforms?

6. Marketing fund usage and proven ROI?

7. Tech/app fees and data ownership?

8. Franchisor financial health and litigation history?

9. References from both high- and low-performing franchisees?

10. Downturn performance data?

11. Renewal/de-branding/exit scenarios in detail?

12. Hidden costs (insurance benchmarks, software, etc.)?

When Does a Laundromat Franchise Make Sense?

It can make sense if:

• You’re new to the industry and need structure.

• You prefer (or need) semi-absentee models with strong systems.

• You have the high liquidity/net worth and aim for multi-unit scaling.

• The brand offers genuine tech/amenity edges (e.g., Lapels multi-revenue, Spin Doctor modern appeal).

• Prime locations are hard to secure in your area without franchisor help.

It probably doesn’t make sense if:

• You have industry experience and vendor networks.

• You can acquire/retrofit independent laundromats cheaper.

• Your market has thin margins—fees could sink you.

• You value full operational creativity and cost control.

• You’re uncomfortable with long-term contractual handcuffs.

Final Takeaway: Independent laundromats still dominate for good reason—lower costs, maximum flexibility, and proven cash machines when you obsess over maintenance, cleanliness, and local marketing. Franchises like the ones listed provide a polished path for the right investor but come with real costs and trade-offs. The image data highlights a wide entry range—from Spin Doctor’s more accessible ~$70K cash to Speed Queen’s steep $2M net worth hurdle.

Do the math ruthlessly for your market. Visit stores unannounced. Talk to current franchisees (and ex-franchisees). Model worst-case scenarios. Whether you franchise or fly solo, success boils down to execution: reliable machines, spotless stores, and tight cost control.

The laundry business rewards operators who keep the machines spinning profitably—not necessarily the ones with the shiniest franchise logo.

Until next week, keep those washers turning all day long, the dryers hot and take the quarters to the bank!

Travor Lutz, Editor

The Laundry Operator Newsletter

(All data cross-referenced from FDD summaries, franchisor materials, and industry sources as of latest available. Consult professionals and current disclosures before any investment.)

Greetings fellow laundry warriors!

As your friendly neighborhood laundromat guy and small business partner, I spent years knee-deep in quarters, lint traps, and even basked in the glow of those glorious moments when a store was running like a well-oiled (literally) machine. If you’ve just taken the plunge and bought an existing laundromat, congratulations—you’ve joined a club that’s equal parts cash-flow machine and never-ending adventure.

Today we’re tackling five of the most common post-purchase head-scratchers: Revenue Tracking, Maintenance Schedules, Repairs and Technicians, Pricing Strategy, and Ongoing Compliance.

These questions come straight from the front lines: owner forums like Reddit’s r/Laundromats, industry groups, buyer interviews, and countless conversations with new operators who went from excited to “what did I just buy?” in record time. The transition from due diligence to daily operations hits hard. You’ve verified the numbers (hopefully), but now the machines are yours, the utilities are running, and reality has set in.

I’ll keep the answers short, practical, no-fluff, and grounded in real industry data. Let’s dive in with a bit of humor—because if you can’t laugh at a 3 a.m. dryer meltdown, what’s the point?

1. How do I accurately track and verify daily/weekly revenue, including handling cash collections, card systems, and potential underreporting from the previous owner?

This one tops the list for good reason. New owners often discover that seller-provided numbers were...optimistic. Cash-heavy businesses invite creativity in reporting, so verification is your best friend.

Start by establishing your own baseline income immediately. You need to determine what your new laundromat is bringing in. Install or verify reliable tracking: card/app systems (like PayRange or LaundryCard) give digital reports that are hard to fudge. For cash, use a consistent collection schedule and method—many owners collect 2-3 times per week during daylight hours with a witness or camera for safety.

To establish your baseline, start by collecting and counting your washers separate from your dryers. It will be valuable to know where the bulk of your income is coming from. Some owners also break down their collection by machine types/sizes. I’ve often been asked, how do you count all those quarters? Well, unless you invested in a coin counter machine, simply weigh the coins on a scale for quick tallies. Here is how to do it….A US quarter weighs 5.67 grams. So, let’s assume you have a standard 5 gallon empty pickle bucket that weighs 1.5 lbs. (or 680.4 grams), and once you have emptied your washers, the bucket and quarters weigh-in at 5,216 grams; then you know your machines produced approx. $200. Here is the math: Your bucket of quarters weighs 5216 grams, minus the empty bucket which we know is 680.4 grams which equals 4,535.6 grams of quarters, which divided by a 5.67 gram quarter equals 799.92 quarters in the bucket. Then divide the 799.92 by 4 quarters in a dollar, which equals $199.98 dollars. It’s that simple.

You can cross-check with utilities: water and electric bills are excellent proxies for actual usage and revenue. If the seller claimed $10k/month but your first month’s water suggests half the turns, dig deeper. Track machine utilization (cycles per day) via meters or software. Aim for consistent daily deposits and reconcile against bank statements. Tools like CleanCloud or basic POS software help log everything in real time.

Pro tip with humor: Treat collections like a spy mission—vary your times of collections for safety, stay alert, and maybe invest in a good backpack. Underreporting from the prior owner? It’s common enough that smart buyers often attend collections for up to 30 days pre-close to verify the sellers reported income. Post-purchase, your clean collection systems become the new standard benchmark that you will use to chart your operational progress. Expect some initial collection variance as customer counts fluctuate, but solid tracking turns guesswork into predictable cash flow.

2. How often should I schedule preventative maintenance on the washers and dryers, and what are the most common breakdowns I should prepare for?

Ignore this at your peril—downtime is lost revenue, and laundromats run 24/7 in customers’ minds. Preventative maintenance (PM) is the cheapest insurance you’ll buy. Full disclosure…this is not one of my strong points in operations. My wisdom of “don’t fix what ain’t broke” didn’t always pay off! Learn from my mistakes!

Industry-standard schedule:

• Daily: Clean lint traps/filters on dryers (fire hazard prevention), wipe down machines, and check for leaks or unusual noises.

• Weekly: Inspect hoses, clean drums, check vents and exhausts.

• Monthly: Deeper checks—belts, bearings, internal lint buildup, water inlet valves.

• Quarterly/Annually: Professional tech service for lubrication, calibration, belt/hose replacements, and full inspections.

Common breakdowns: Dryer heating elements and motors, washer drain pumps, belts, water valves, and control boards. Older machines love to fail at peak hours and always when a customer is mid-cycle of a huge load. High-usage stores see more wear on bearings and seals. Keep a spare parts kit (belts, hoses, common fuses) on hand. Many owners log Preventive Maintenance in a binder or app and track repairs per machine for trends and insurance claims. As frustrating as it will be, many of the breakdowns and repairs will be due to “user error/customer abuse”. Contractors with screws and nails in their pants pockets will wreak havoc on your washers and dryers…and don’t get me started on “bra wires” and credit cards in washer drain lines. Ugh!

Humor break: Think of Preventive Maintenance like dental hygiene for your machines. Skip flossing (daily lint cleaning) and you’ll face root canals (expensive repairs) later. Well-maintained equipment runs efficiently, cuts utility costs, and keeps customers happy instead of posting angry reviews about the “broken one on the end.”

3. Should I learn to perform basic repairs myself, or how do I find reliable, affordable technicians in my area who won’t overcharge for minor fixes?

This is the eternal debate. You don’t have to become a full mechanic, but basic skills pay dividends. Many successful absentee or semi-absentee owners handle small stuff and call pros for big jobs. One of my “super powers” was identifying potential problems by sound. All machines give audible clues when they start to experience problems, and learning to “hear” when your machines are sick is invaluable. The dryer with a roofing nail stuck in the drum, and a washer with a partially clogged drain make distinct sounds. Learn to listen to the hum of your facility and you will know when something is amiss.

Learn the basics: belt changes, hose replacements, lint cleaning, resetting machines, and simple diagnostics. Manufacturers and distributors often offer free or low-cost training classes. YouTube + manuals go far for common issues. This can save thousands annually on service calls.

For pros: Ask other local laundromat owners (yes, network—even competitors share tech horror stories). Equipment distributors usually have recommended techs. Check reviews, get quotes, and prefer those who charge by the job for minor fixes rather than hourly plus travel. Typical service call: diagnostic fee $50–150 applied to repair; common fixes run $150–500+ depending on parts. Many techs will welcome you sourcing and ordering the parts…and then you simply utilize their installation skills with no markups on the parts.

Build relationships—reliable techs become gold. One of our stores was in a very small market, and when we found a great tech, we treated him like a King and built a strong relationship with him. He was not cheap, but he became our lifesaver. We often sourced and stocked our own parts, and simply paid the tech for labor.

Find the Balance: DIY minor stuff to control costs, but don’t tackle motors or complex electronics unless you’re confident (or enjoy expensive experiments). One laundromat we took over had several washers where wiring and electronics were literally scotch taped together by the former owner, resulting in one machine experiencing a catastrophic fire. Invest in a good tool kit and some YouTube University credits…but keep in mind the wisdom of Dirty Harry: “A man’s got to know his limitations”.

4. What pricing strategy should I use for vends (washers and dryers), and how do I benchmark against local competition while covering rising costs?

Pricing is art and science. Too low and you leave money on the table (or can’t cover bills); too high and customers vote with their baskets.

Pricing Strategy: Finding the Sweet Spot

A smart, sustainable pricing strategy usually combines cost-plus pricing with strong market awareness. First, calculate your true costs per load. This includes utilities (water, gas/electricity), ongoing maintenance, rent or lease expenses, labor (if any), insurance, and other overhead. Then layer on your target net profit margin—most experienced owners aim for 20–35% net after all expenses, though top-performing stores can push higher with efficient operations and strong volume.

The key is staying competitive while protecting your margins. Start by thoroughly benchmarking local competitors: visit nearby laundromats, note their machine sizes, cycle times, pricing, cleanliness, and amenities. Don’t automatically match the lowest price in town. Instead, position your store as the better overall value.

Modern card or app-based payment systems give you a major advantage here. They allow incremental price increases (think $0.25 or even $0.10 steps) that are much easier for customers to accept than the old coin-operated jumps of $0.50 or $1.00 at a time. Review your pricing at least quarterly. As utility rates and other costs rise, make small, justified adjustments rather than waiting for a painful big jump later.

When you do raise prices, communicate the value you’re delivering. Highlight improvements such as a consistently cleaner store, better-maintained or newer machines, hotter and faster dryers, longer wash cycles, improved lighting, friendly staff or added amenities. Many successful owners tie modest price increases directly to visible upgrades—like installing new high-efficiency machines or refreshing the interior—so customers feel they’re getting more for their money.

Practical Testing and Monitoring

Never make blanket price changes across the entire store at once. Test the new pricing on just a few machines (perhaps your largest, newest equipment) first and carefully monitor the results. Track machine utilization closely: a healthy target is typically 35–50% for washers and 25–40% for dryers (these percentages reflect how often the machines are running versus sitting idle over operating hours). These are general industry benchmarks—your ideal numbers will depend on your location, demographics, and equipment mix.

If you notice utilization dropping after a price change, it could signal that your pricing is now too high for the market, or it might mean you need stronger marketing to attract more customers. Low turns often respond better to better visibility, cleaner facilities, or targeted promotions than to price cuts.

A Note on Customer Psychology (with Humor)

Customers have an almost supernatural ability to notice even a single quarter increase—like it signals the end of civilization as they know it. Yet the same customers will gladly pay more (and become loyal) when your laundromat doesn’t smell like regret and broken dreams, when machines actually work reliably, and when the overall experience feels safe, pleasant and trustworthy.

In short: strive to become the premium option in a sea of mediocrity. A clean, well-run laundromat that delivers consistent value can comfortably charge above the cheapest competitor and still maintain strong volume and loyalty.

5. What are the ongoing compliance requirements (permits, health/safety codes, environmental regulations for water usage)?

Compliance and Regulatory Requirements: Staying Legal Without the Headaches

Compliance isn’t the most exciting part of owning a laundromat, but ignoring it can lead to hefty fines, forced shutdowns, or expensive retrofits. The good news? Most requirements are straightforward once you know what to look for. The bad news? They vary significantly by city, county, and state—so treat the list below as a solid starting checklist, not a complete map. Always verify the exact rules with your local authorities, as regulations can change and enforcement differs by location.

Here are the core compliance items most new laundromat owners need to address:

• General Business License: Almost every municipality requires this basic license to operate legally. It’s typically renewed annually and can cost anywhere from $50 to several hundred dollars, depending on your location.

• Zoning Approval and Conditional Use Permits: Your property must be properly zoned for commercial laundry use. You may also need special conditional use permits if your laundromat falls under specific local rules.

• Utility and Wastewater Permits: Laundromats are heavy water users. Many areas require water usage permits and wastewater discharge permits to ensure proper handling of detergent-laden water. Expect possible tracking requirements or sewer surcharges based on volume.

• Fire Safety Compliance: This includes regular fire department inspections, properly installed and maintained alarms, fire extinguishers, and correct dryer venting to prevent lint-related fires.

• Building and Safety Codes, Including ADA Accessibility: Your facility must meet local building codes for structural safety, electrical, and plumbing. ADA compliance (accessibility for customers with disabilities) is also required in most cases.

• Annual Machine Tax Stamps or Occupation Tax Permits: In certain states (such as Texas, Florida, etc.), you may need to purchase and display annual permits or tax stamps on each coin-operated machine.

• Sales Tax Permits: If you sell retail items like detergents, snacks, or other vending products, you’ll need a sales tax permit and in many cases will need to file a quarterly tax report. However, note that self-service laundry services themselves (i.e. washers and dryer use) are exempt from sales tax in most states.

• Scale Calibration and Inspections (for Wash-Dry-Fold Services): If you offer priced-by-the-pound wash-dry-fold, you must use a certified “legal-for-trade” (NTEP-approved) scale. These scales usually require periodic inspection and calibration by local authorities to ensure accuracy.

• Health and Sanitation Permits: These become necessary if you provide full wash-dry-fold or attended services. They cover proper handling of customer laundry, sanitation standards, and sometimes employee health requirements.

Environmental Regulations deserve special attention. Because laundromats consume large volumes of water and discharge wastewater containing soaps and chemicals, many jurisdictions enforce water conservation rules and wastewater handling standards. Some areas now require high-efficiency machines, graywater recycling systems, or pre-treatment before discharge into the sewer. Staying ahead of these rules can actually save you money through lower utility bills and avoided fines.

Beyond permits, keep detailed records of all inspections, maintenance logs, and repairs. These documents prove compliance during audits and can support insurance claims. Speaking of insurance, strong coverage—including general liability, property insurance, and equipment breakdown—is essential even when not strictly required by law. It protects you from the “what ifs” that can sink a new owner.

Annual costs for licenses, permits, and related compliance typically range from a few hundred dollars to a couple of thousand dollars per year, depending on your city’s requirements and the size of your operation.

Pro Tip for New Owners: As soon as you take ownership, introduce yourself to the key local inspectors and officials (fire, health, building, utilities). Being proactive and building a positive relationship usually makes the process smoother—they’re often more helpful when they see you’re serious about doing things right.

Put recurring compliance tasks on your calendar: renewal dates, inspection schedules, and record-keeping reviews. Systems like this turn a potential headache into routine maintenance that keeps your business running smoothly for years.

Wrapping It Up: You’ve Got This!

These five questions capture the shift from buyer excitement to operator reality. Revenue tracking builds trust in your numbers. Maintenance and repairs keep the machines (and profits) spinning. Smart pricing protects margins. Compliance keeps you legal and stress-free.

Laundromats reward consistency and attention to detail. They’re not fully passive, especially at first, but with systems in place, many owners scale to multiple stores or enjoy strong semi-absentee cash flow. Start small, track everything, build relationships with suppliers and fellow owners, and don’t be afraid to invest in efficiency upgrades.

If you’re nodding along thinking “yep, that’s me”, you’re already ahead of the curve. Drop your biggest current challenge in the comments or reply to this newsletter—I read them and love helping operators win.

Here’s to clean machines, full cash drawers, and fewer midnight emergencies. Keep spinning those profits!

Travor Lutz, Editor

The Laundry Operator Newsletter

(Questions were drawn from industry reports, owner forums, and verified operational data for accuracy as of 2026.)

Hey there, fellow laundry operators….we’ve got a doozy of a topic on today’s agenda! If you’ve ever walked into your laundromat on a busy Saturday and spotted someone with a fluffy dog in tow—despite that big “No Pets” sign on the door—you’re not alone. In an industry with roughly 17,000 to 30,000 self-service laundromats across the U.S. generating billions in annual revenue, pet-related headaches are as common as lint in the dryers.

Many customers assume their “regular” looking canine is fine to go wherever they go, or they claim it’s an Emotional Support Animal (ESA) protected under the Americans with Disabilities Act (ADA). Others insist it’s a bona-fide Service Animal. Let’s admit it…this is not an operational area we give much thought to, however by ignoring this issue, there are real world consequences (i.e. $$$$). As laundry operators, we want to welcome everyone while keeping the space clean, safe, and legally compliant. Let’s dive deep into ADA compliance for public accommodations under Title III, with a nod to Title II distinctions where relevant, service animals versus ESAs (Emotional Support Animals), accessibility requirements, enforcement strategies, and the real-world consequences of getting it wrong. We’ll keep it conversational but pack in the details, statutes, rulings, and data.

First, let’s get the obligatory disclaimer out of the way: This article is for informational and educational purposes only and is written from the perspective of a laundromat industry guy with rudimentary knowledge of ADA laws, federal statutes, regulations, and relevant case law. I am not an attorney and this is not legal advice (Although I did stay in a Holiday Inn Express once…). Laws can change, interpretations vary by jurisdiction, and compliance depends on specific facts. Laundromat owners and other business operators should consult qualified legal counsel, the U.S. Department of Justice (DOJ), or accessibility experts for advice tailored to their situation. Always verify current requirements with official sources like ada.gov.

Understanding ADA Titles II and III: The Big Picture for Laundromats

Laundromats are classic “places of public accommodation” under Title III of the ADA (42 U.S.C. § 12181 et seq.). The statute lists 12 categories, and service establishments explicitly include laundromats, dry cleaners, and similar businesses. Title III prohibits discrimination on the basis of disability in the full and equal enjoyment of goods, services, facilities, privileges, advantages, or accommodations. It applies to private entities whose operations affect commerce—basically, almost every brick-and-mortar business open to the public, regardless of size or building age.

Title II covers state and local government entities and their programs, with similar nondiscrimination rules but some procedural differences. For most private laundromat owners, Title III is the primary concern.

Key principle: Businesses must provide equal access. This includes removing architectural barriers when “readily achievable” (easily accomplished without much difficulty or expense) in existing facilities, and full compliance for new construction or alterations. “Readily achievable” considers factors like cost relative to resources, impact on operations, and safety.

Humor break: Imagine explaining to a judge that widening aisles was “not readily achievable” because it would cut into your laundromat’s prized pinball machine collection. Spoiler: That argument rarely lands well.

Service Animals vs. Emotional Support Animals: Clearing the Confusion

This is where things get tricky—and where many well-intentioned (or not-so-well-intentioned) customers push boundaries. The DOJ’s regulations (28 C.F.R. § 36.104 for Title III; similar for Title II) define a service animal narrowly:

“Any dog that has been individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability.”

Tasks must be directly related to the person’s disability. Examples include guiding the blind, alerting to sounds, pulling a wheelchair, retrieving items, alerting to seizures, reminding about medication, or interrupting destructive behaviors for psychiatric disabilities. The “crime deterrent effects of an animal’s presence” or mere emotional support, comfort, or companionship do not count as tasks.

Only dogs (and in rare cases, miniature horses…no joke!) qualify as service animals under Titles II and III. Other species, even if trained, generally do not. Emotional support animals (ESAs), therapy animals, comfort animals, or pets are not service animals under the ADA. They provide benefit simply by their presence, without specific task training. ESAs may have protections under the Fair Housing Act (FHA) for housing or the Air Carrier Access Act for flights, but not for public accommodations like laundromats, stores, or restaurants. Over the years, we have had to nicely kick out dozens of customers that believed their Emotional Support dog was protected by law to hang out in our laundromats.

How to determine if an animal is a service animal (without guessing or demanding paperwork):

When it’s not obvious (e.g., a dog in a vest guiding a blind person is usually apparent), your laundromat staff may ask only two questions (28 C.F.R. § 36.302(c)):

1. Is the dog a service animal required because of a disability? (The only correct answer is “YES”.

2. What work or task has the dog been trained to perform? (The correct answers could include: My dog…opens doors, fetches dropped items, provides me balance, detects low/high blood sugar, onset of a seizure, interrupts self-harming behavior, navigates obstacles or stairs and alerts me to alarms or sirens.)

What you ABSOLUTELY CAN NOT DO:

• Ask about the nature or extent of the person’s disability.

• Demand documentation, certification, licensing, or registration (these are often fake anyway).

• Require the dog to demonstrate the task.

• Insist on a specific vest, ID tag, or “proof.”

If the answers are satisfactory and the dog is under control (housebroken, not disruptive), you must allow access to the laundromat. Period. Service animals must be permitted in all areas where the public is allowed, with limited exceptions (e.g., sterile environment areas, or if the animal poses a direct threat that cannot be mitigated).

Laundromat enforcement of pet policies while staying compliant:

• Maintain a clear “No Pets” policy, but include an exception for service animals (and train staff on it).

• If someone brings a non-service animal (pet or ESA- Emotional Support Animal), politely enforce the policy. You can ask them to remove the animal if it doesn’t qualify.

• Document incidents: Note the two questions asked, responses, behavior of the animal (e.g., barking, soiling, aggression), and any safety issues.

• Reasonable modifications: You may need to adjust policies unless it fundamentally alters your business or poses an undue burden.

• Direct threat: Exclusion is allowed only with an individualized assessment based on current medical knowledge or objective evidence—not stereotypes. Allergies alone usually don’t suffice, but severe reactions combined with alternatives might (see cases like Bennett v. Hurley Medical Center, where a hospital’s response to allergies was upheld).

Case law underscores the limits. In various rulings, courts have rejected claims where animals provided only emotional support without task training. DOJ guidance explicitly states ESAs and comfort animals do not qualify. Misrepresentation of a pet as a service animal can sometimes lead to state-level penalties (some states have specific laws against fraud), though federal ADA focuses on the business’s obligations.

Humor alert: That Chihuahua in the stroller with a “Service Animal” patch? If the owner can’t describe a specific task tied to a disability, it’s probably not covered. Don’t play detective—just stick to the two questions. Over the years, we had to address “fake” Service Animals in our laundromats many times. The key is to ask the questions as noted above in a calm and polite manner…and if they do not answer correctly or refuse to answer…ask them to remove the pet and document the incident. On one occasion, when a customer with an emotional support animal refused to leave, it was necessary to call the police, who then also explained to the customer why they had to remove the animal or leave altogether.

Ensuring Physical Accessibility Compliance in Laundromats

Title III requires more than animal policies. Laundromat facilities must be accessible. For new construction (first occupancy after Jan. 26, 1993, with permits after Jan. 26, 1992), full compliance with ADA Standards is required unless structurally impracticable (a narrow exception). Alterations must comply to the maximum extent feasible. Existing facilities must remove barriers when readily achievable.

Specifics relevant to laundromats (drawing from 2010 Standards and industry guidance):

• Entrances: At least 32 inches clear width when open (door hardware operable with one hand, no tight grasping/pinching/twisting; force ≤5 lbs). Level thresholds or ramps where needed. Ramps: max 1:12 slope, with landings.

• Aisles and routes: Minimum 36-inch clear width for accessible routes; 60-inch turning space or T-shaped space for wheelchairs. Clear floor space in front of machines: typically 30” x 48” minimum, with operable parts (controls, doors, coin slots) within reach ranges (typically 15-48 inches high, depending on forward/side approach).

• Machines: Where there are 1-3 washers provided, at least 1 must be accessible; and if there are more than 3 washers, at least 2 must be accessible. The same rules apply for dryers. Front-loading machines are preferred for reach; controls must be one-hand operable without tight grasping. High-efficiency machines sometimes pose challenges—plan accordingly. At least one of each type of machine should have accessible features.

• Parking, paths, restrooms: Accessible parking (with van-accessible spaces if multiple), curb ramps, signage, and if restrooms are provided, fully accessible ones (grab bars, knee clearance under sinks, etc.).

• Payment and other elements: Counters, card readers, change machines at accessible heights; braille/raised characters where applicable; visual alarms if needed.

“Readily achievable” barrier removal is ongoing. Prioritize high-impact, low-cost items first (e.g., rearranging machines for better paths before major renovations). For alterations to primary function areas (like the main laundry floor), path-of-travel requirements kick in.

Industry resources, such as guides from the Coin Laundry Association or laundry equipment suppliers, emphasize practical steps like installing ramps, ensuring 36-inch aisles, and positioning at least some front-loaders accessibly. Many laundromats serve diverse communities, including those with mobility disabilities, so compliance isn’t just legal—it’s good business.

Stats on lawsuits: ADA Title III filings in federal court have been high for years. In 2025, there were 8,667 filings (a slight dip from prior years but still thousands annually, with peaks over 11,000). Many target retail and service businesses; physical accessibility barriers remain a common issue alongside newer digital claims.

Consequences of Noncompliance: Fines, Lawsuits, and Headaches

Getting this wrong is expensive. Under Title III, the DOJ can seek civil penalties: up to $75,000 for a first violation and $150,000 for subsequent violations (adjusted for inflation in some references; check current figures). These are discretionary and often part of broader enforcement or settlements.

In addition, private individuals can sue for injunctive relief (forcing fixes) and attorney’s fees—no compensatory damages in pure Title III actions, but fees can be substantial, incentivizing “serial” litigation in some areas. Settlements often include remediation costs, monitoring, and payments to plaintiffs/attorneys that run into tens of thousands per case. In high-activity states like California, state laws (e.g., Unruh Civil Rights Act) can add statutory damages ($4,000+ per violation), amplifying risks.

Examples from case law and DOJ actions:

• Businesses have faced suits for inaccessible entrances, lack of accessible machines/paths, or improper denial of service animals.

• Service animal denial cases: Courts have awarded relief where legitimate service animals were excluded by the business without proper basis to do so. On the other hand, courts have also approved (upheld) situations where a business or public entity legally excluded a service animal because it posed a “direct threat” to the health or safety of others — but only when the business conducted a proper, case-by-case (individualized) assessment of the actual risk.

• Barrier removal failures: Ongoing “drive-by” or serial suits target small businesses for technical violations. Unfortunately, there are people/agencies that make a living off suing businesses for their failure to adhere to ADA guidelines.

Reputationally, noncompliance can deter customers and invite negative publicity. In a service-heavy industry like laundromats, word travels fast—especially in tight-knit communities.

Real talk: With thousands of ADA suits filed yearly, even compliant businesses can face claims. Proactive audits, staff training, and documentation are your best defenses. Many operators partner with accessibility consultants for site reviews.

Practical Tips for Laundromat (and Retail) Owners

1. Train your team: Role-play the two questions. Emphasize politeness and de-escalation. Document everything. If you have video cameras…save the video documentation.

2. Post clear policies: “No pets except service animals as defined by ADA. We may ask the two permitted questions.”

3. Accessibility audit: Tour your facility in a wheelchair (or hire pros). Check machines, paths, entrances, restrooms. Prioritize readily achievable fixes.

4. Maintain records: Barrier removal efforts, even partial, show good faith and will help mitigate penalties if you are ever sued for an ADA infraction.

5. Animal control plan: Have a written procedure for disruptive animals (e.g., out-of-control barking or soiling can justify removal).

6. Stay updated: Monitor DOJ guidance (ada.gov has excellent FAQs on service animals) and standards. The 2010 Standards are current for most purposes.

7. Insurance and legal check: Review liability coverage; consult counsel on policies.

For brick-and-mortar businesses broadly, the same rules apply—restaurants, retail, gyms, etc., all face Title III obligations. Laundromats have the added twist of heavy equipment and wet floors, making safety and access intertwined.

Wrapping Up: Compliance as Smart Business

Running a laundromat means juggling spinning washers, customer quirks, and legal obligations. ADA compliance—whether for physical access or service animals—protects vulnerable customers and shields your business from costly disruptions. Service animals are working partners, not pets; Emotional Support Animals, while valuable to their owners in other contexts, don’t get public access rights under Title III. Most Emotional Support Animal owners incorrectly believe ADA allows them to take their pet anywhere…they are incorrect.

The data shows persistent litigation risk: thousands of Title III cases annually, with physical and policy violations still prominent. But compliant operators often report broader appeal and fewer headaches. Invest in accessibility now—it’s cheaper than retrofitting under a court order or settling a lawsuit.

If a customer with a legitimate service dog enters, smile and let them do their laundry in peace. If it’s a pet or unverified ESA claiming protection, politely apply the rules. Your “No Pets” sign isn’t meaningless—it’s a tool, backed by federal law when used correctly.

Stay compliant, stay welcoming, operate wisely and keep those machines humming. Remember, this is not legal advice so seek the necessary professional support when applicable.

Travor Lutz

The Laundry Operator Newsletter

(Sources drawn from DOJ regulations, ADA Standards, official guidance, industry reports, and court summaries for accuracy.)

Further Reading (official sources):

• ADA.gov Service Animals FAQ and Requirements

• 2010 ADA Standards for Accessible Design

• Title III Regulations (28 C.F.R. Part 36)

Hey there, fellow laundry pros! As a laundromat industry fan who’s spent decades digging into all the proprietary data from the Coin Laundry Association (CLA) surveys, operator reports, IBISWorld analyses, and real performance numbers from hundreds of stores across the U.S., I’ve seen how adding the right ancillary services can really take a good self-service operation and turn it into a true revenue powerhouse.

The U.S. laundromat sector is generating around $6.8–$7.2 billion in annual gross revenue these days, with individual stores typically bringing in anywhere from $150,000 to $334,000 or more depending on size, location, and what extra services you offer. Profit margins usually sit nicely between 20–35%, which gives you that strong, reliable cash flow we all love—especially when your core self-service washers and dryers are humming along perfectly.

But here’s the friendly truth I always share: ancillary income isn’t some magic fix. The best stores I know focus first on making their basic self-service model rock-solid. The CLA’s 2024 Laundry Industry Survey shows that 99% of stores offer at least one ancillary service, and the top performers treat these extras as smart enhancers rather than Band-Aids for problems.

Let me walk you through a thorough, real-world deep dive into today’s standard ways to generate that extra income. I’ll cover adoption rates, what equipment and labor you’ll need, how to decide what’s right for your store, realistic ramp-up times, and income numbers pulled straight from industry benchmarks. We’ll also look ahead at some promising new ideas and chat about those fun, sometimes quirky experiments like tanning beds or in-store cafes. And I’ll keep reminding you of the golden rule: get your core business running smoothly first!

Current Industry-Standard Ancillary Services

1. Wash & Fold (Fluff-and-Fold) Services. This one is really popular and keeps growing. In the 2024 CLA survey, about 65% of stores offered drop-off wash-dry-fold, and 38% added pick-up/delivery options. Pricing typically runs around $1.66 per pound for straight drop-off (with a median around $1.50–$2.09 depending on extras). Many operators saw customer volumes for wash & fold increase nicely from 2022 to 2023.

How should you decide if it’s right for you? It’s fantastic if you’re near apartments, universities, or areas full of busy professionals. Take a good look at your local demographics—high renter density and dual-income households are your friends. If your core machines are already turning 4–5 loads per day, wash & fold can nicely capture those “time-poor” customers without hurting your coin-op revenue.

Equipment and labor needs are pretty straightforward: You can mostly use your existing machines, plus some folding tables and packaging supplies that might run you $500–$2,000 to start. The main variable is labor—one or two attendants can process 20–30 pounds per hour, and payroll for staffed stores often lands around 20–22% of gross revenue. If you already have labor on-site, and you are not doing Wash & Fold, implementing it is a no brainer.

Ramp-up time is usually 3–6 months. Focus on smart marketing like clear signage, updating your Google Business Profile, loyalty apps, and teaming up with local apartment complexes. Early on, volume might be slow until word-of-mouth kicks in. And once you start getting traction, we saw approximately 80% of our customers were repeat business…coming in on a weekly basis.

Realistic income? Once it’s established, a mid-sized store can see $5,000–$15,000+ per month from wash & fold, often making up 20–40% of total revenue in full-service spots. Margins are solid once you control labor and supplies tightly. Some laundromat owners are content on “break even”; seeing this as a way to pay their on-site staff that are already there monitoring equipment, assisting customers and constant cleaning…but don’t stop there. There is money to be made in a well-run Wash & Fold operation.

2. Dry Cleaning Drop Store. About 14% of stores offer this according to the 2024 CLA data. You partner with a local dry cleaner for drop-off and pick-up, earning a commission (usually 20–30%) or a markup.

It’s a great fit for urban or suburban spots with lots of professionals. You only need a little counter space, some large laundry bags, and a rack to store the fresh dry-cleaning—no big equipment headache. Labor is minimal since your front-desk person can handle intake.

Ramp-up is quick, often just 1–2 months to set up the dry-cleaning partnership and train staff. Income is steady but more modest—think $1,000–$4,000 per month depending on volume. Best part? It brings in convenience traffic that boosts your core business. Many of our customers started with us as Wash & Fold clients, but also took advantage of the dry-cleaning options.

Subscribe now

3. Tailoring/Seamstress Services. This sits around 9–11% adoption. Many stores handle simple alterations or partner with a part-timer for ironing and repairs.

It works especially well in family neighborhoods or areas with lots of immigrants where clothing repairs are common. You’ll need basic sewing machines ($500–$2,000) and a small workspace; assuming you do the work in-house. Labor is usually a part-time contractor or 10–20 hours a week. Some operators treat this like their dry-cleaning drop service…they simply act as the middle man and contract the work out to a third party.

Ramp-up takes 2–4 months to build referrals. Income is nice supplemental money—$500–$2,000 per month—with good margins on quick jobs like hems.

4. Vending (Snacks/Drinks, Soap/Dryer Sheets/Softener), ATMs, Coffee Machines. This category is huge! Soap vending is at 82–87%, snacks/drinks around 68–84%, and ATMs at 44% in recent surveys. Vending overall adds a helpful 2–5% to total revenue for many stores.

These are almost universal winners because customers love grabbing something during their wait…and many customers show up with a pile of dirty clothes, but no laundry soap or dryer sheets. High-traffic locations especially clean up with ATM surcharges of $2–$4 per use.

Machines cost $2,000–$5,000 each (or lease your ATM), and restocking is easy—often just 1–2 times a week by you or a helper. Ramp-up is super-fast, just 2–4 weeks. Income can be excellent: soap vending might bring $2,000–$6,000/month gross in busy stores with strong markups; snacks/drinks $500–$2,000; ATMs $500–$2,000+ in the right spot. It’s mostly passive and high-margin after setup. One of our laundromats was next to a liquor store and a nail salon. Women frequented the ATM to get “tip money” for the nail technician, and the guys got cash to buy their adult beverages (so the purchases didn’t show up on a credit card receipt perhaps?)

5. Game Vending, Water Vending Machines, Quarter/Coin Pushers, etc. Around 28% of stores have video games or similar. Great for family or younger crowds, but watch for noise or loitering of non-laundry customers. Depending on your clientele, video game machines may become more of an aggravation than bonus income...particularly if the machines become popular with non-laundry customers. They can attract the wrong element. Coin Pushers are very profitable…and if you are one of the 12 states that permit their use in non-gaming establishments, they may be worth a look. We avoided these machines, simply because we were concerned with how to prevent under-age children trying to use them…but when we sold one store, the new owner immediately added a Coin Pusher and he could easily pay his laundromat electric and gas bill with this one machine. And let me tell you about Water Vending…one of our laundromats was next to an ethnic fresh food market…and they had a water vending machine (that prevented us from also having one per the lease)…and we were envious. The constant flow of foot traffic in and out of the store by customers simply refilling their large water bottles. If you have the space, the plumbing and the lease ability to install a water filtering, vending machine…these are a nice addition.

Machines run $3,000–$8,000 each with low maintenance. Ramp-up is basically immediate, and they can generate $300–$1,500 per month per unit in active locations.

6. Massage Chairs. This amenity is not always segregated out separately in surveys, but they are popular as a comfort amenity. Who doesn’t enjoy waiting on clean clothes while melting off the stress of the day in a comfy massage chair? Each new chair is about $3,000….but start with good used or refurbished chairs if you can find them.

They’re perfect for larger stores (over 2,500 sq. ft.) in waiting areas. Low maintenance, quick 1-month ramp-up, and $200–$800 per month per chair. They add that nice “feel-good” factor even if income is modest.

7. Cell/Laptop Charging Stations This is an easy, low-cost modern add-on, often paired with Wi-Fi (which 65–73% of stores now offer). USB ports or lockers cost $500–$1,500 to install.

It fits anywhere—customers expect to be able to “plug in”. Direct income is smaller ($100–$400/month), but it increases dwell time and loyalty big time. We never installed these in our stores, but I wish we had. We always had customers filling our electric sockets with plugs for all manner of devices, and we never collected one cent for this service!

8. Dog Wash Stations. About 7% of laundromats offer these self-serve coin-operated doggie tubs. Ideal for pet-loving suburban or neighborhood spots.

Setup costs could run as high as $7,500–$15,000 per station including plumbing, plus weekly cleaning time. Ramp-up 1–3 months with permits and pet-owner marketing. Net per 10-minute wash is around $8–$10 after costs. Ten to twenty washes a week can mean $400–$800/month per station, with payback in 12–18 months. Suggestion: It is important to move your “pet cleaning” services as far as possible in the laundromat from your “clothes cleaning” services…many people are funny about pets in laundromats, and you don’t want to alienate your core business for the sake of clean canines!

9. Fine Rug Cleaning Service. A nice niche, often tied to wash & fold or commercial work. If you decide to do the work in-house, you’ll need specialized rug washers, extractors, and drying space ($5,000–$20,000). Many laundromat owners treat this like their dry-cleaning drop store, and contract out the work to an established fine rug cleaning contractor, and simply reap the benefits of offering the service as the middle man.

Best near higher-end homes. Ramp-up 3–6 months. Income potential $1,000–$5,000/month once rolling, with strong per-job margins of $50–$200+.

How Laundromat Owners Should Determine Which Services to Add

Here’s a practical, data-driven way to choose:

1. Market Research — Check renter percentages, income levels, and household sizes in your area, plus your own traffic counts and quick customer surveys. Apartments nearby? Go heavy on wash & fold. Lots of pets? Think dog wash.

2. Space & Infrastructure Check — Your average store is around 2,850 sq. ft. Vending needs almost no space; dog wash or rugs need plumbing and room. If you don’t have the space, don’t break your core business by shoving additional services in your store that may impact the self-service laundromat operation.

3. ROI Math — Compare your projected costs against the benchmarks above. Look for payback in 6–12 months and keep that overall 20–35% margin in mind.

4. Core Readiness — Only add when your self-service hits 90%+ uptime, sparkling clean facilities, and great reviews. These extras shine when your base is already strong.

5. Start Small — Test easy ones like vending or charging stations first.

Ramp-up is quick for passive services (weeks) and longer for labor-heavy ones (months).

Emerging and Predicted Ancillary Services

Looking forward, once your core is dialed in, consider tech-forward ideas like app-based pickup/delivery and subscriptions (early users see higher order values). Eco-friendly options such as green detergent vending or even EV charging in the parking lot. Turn your space into a community hub with co-working spots or pop-up events. Bulk commercial linen services are already in 51% of stores. Smart tech like app-controlled machines and loyalty programs can add 5–15% revenue with less extra labor.

The Humorous (and Cautionary) Side: Tanning Beds, Cafes, and Bars

Some operators have had fun with the unusual stuff. A few years back, about 4% tried tanning beds—great stories, but often not worth the maintenance, liability, or space they take. In the 1990’s, in my home-state at the time…Indiana…I looked at several laundromats for sale that had tanning beds. It seemed odd, particularly in Indiana, but these were making money with very little effort on the part of the staff. A handful have added small cafes or even bars to create social laundromats. They generate buzz and social media posts, but the data shows they can pull attention away from keeping machines and floors spotless, raise insurance costs, and add regulatory headaches. They only make sense in very special locations with operations already running flawlessly—and many eventually simplify back to basics.

The Non-Negotiable Rule: Core First

Let me say it plainly and with care: Please don’t add ancillary services to try to “make up” for problems in your core self-service business. If machines are frequently down, restrooms aren’t clean, or customers grumble about waits, extras will just highlight those issues. Top stores hit median revenues near $335,000 because their foundation is excellent. Then the add-ons become easy, profitable bonuses.

In the end, when you choose and time ancillary income thoughtfully, you can comfortably grow a $150,000 store into $300,000+ while building a more diversified customer base. The industry’s solid 20–35% margins and impressive 94–95% five-year survival rate reward exactly this approach.

Focus on being the cleanest, most reliable, best-run self-serve laundromat in your neighborhood first. The extra income streams will naturally follow—and they’ll be far more profitable and enjoyable that way.

Until next time, keep those machines spinning and the quarters flowing!

Travor Lutz

The Laundry Operator

(All stats and figures drawn from the 2024 CLA Industry Survey, IBISWorld reports, and aggregated real operator benchmarks. For advice specific to your location, reach out to your distributor or the CLA—they’re fantastic resources!)

Greetings fellow Laundry Operators,

Today we are going to do a deep dive on one of the toughest decisions you’ll face in the laundry biz: whether to keep repairing and patching up those older washers and dryers or invest in new equipment. We’re pulling data from Coin Laundry Association (CLA) surveys and white papers, ENERGY STAR data, manufacturer reports, and real operator experiences—no fluff, just solid facts.

Let’s walk through the key considerations step by step, plus additional factors that often make or break the decision. Think of this as us sitting down together after hours with a cup-a-Joe or an adult beverage and crunching the numbers for your store!

Utility Expenses: New Machines vs. Older Models

New commercial laundry equipment delivers major efficiency gains that go straight to your bottom line. Older top-load washers from 15+ years ago commonly use 45+ gallons of water per cycle, while today’s high-efficiency models typically use just 24–25 gallons. Heavy-duty front-loaders have improved dramatically, dropping from 2–3 gallons per pound of clothing down to around 1 gallon or less.

Modern high-extraction washers also spin out significantly more water, which greatly reduces dryer runtime and cuts dryer gas or electric costs. According to ENERGY STAR data, certified commercial washers use about 45% less water and are roughly 9% more energy efficient overall compared to standard models. In real-world laundromat operations, owners who replace severely outdated equipment frequently report 20–25% overall savings on their utility bills, along with the ability to implement higher pricing.

In high-utility states like my home state of Florida, these savings can accumulate very quickly. The best approach is to track your actual water, gas, and electric costs per machine or per row. As you replace single or multiple machines, watch your utility usage drop.

Calculating the Payback Time Frame

Most laundry owners see a payback period of 3 to 5 years when replacing old machines with new high-efficiency models. This timeline factors in lower utility costs, reduced repair expenses, faster cycle times that increase daily turns, and the ability to charge slightly higher prices. In busy 24-hour stores, some operators achieve full return on investment in as little as three years thanks to a 30% or greater drop in monthly water and energy bills.

To run the numbers yourself: Divide the net cost of the new equipment (after rebates and tax benefits) by your total annual gains from utilities, repairs, and extra revenue. Manufacturers and distributors provide easy-to-use spreadsheets tailored to your local utility rates and store volume. Always get a professional audit instead of guessing. Many laundry equipment distributors will run a free customized utility audit for your store before you purchase so that you can get a feel as to the positive impact to your bottom line.

Dryer Replacement: Where the Real Savings (and Customer Wins) Come From

While we’ve covered overall utility improvements, let’s zoom in on the dryers themselves—because replacing older ones often delivers some of the biggest bottom-line impact in a laundromat. New commercial tumble dryers are noticeably more efficient than models from 10–15 years ago. The key technology is advanced moisture sensors (usually metal strips or bars inside the drum) that continuously monitor the actual moisture level in the clothes as they tumble.

Here’s exactly how it works in practice: When the sensors detect that the load has reached the selected dryness level, the heat turns off automatically, but the drum continues to tumble for a short cool-down period (typically 3–10 minutes, depending on the model). This prevents over-drying, reduces energy waste, and helps minimize wrinkles. It does not stop the entire machine the instant the clothes are dry if the customer has paid for more time—instead, it switches from heating to cool-down mode. This is a major improvement over older timed-only dryers that keep blasting heat until the full paid time runs out, often baking clothes unnecessarily.

New dryers are also safer and far more customer-friendly. Modern designs include better airflow systems, improved lint management, and smart controls that reduce the risk of overheating or uneven drying—issues that can crop up in aging equipment. Customers love the faster cycle times, even results on bulky loads, and the fact that clothes come out with fewer wrinkles and less wear. Many new units even send app notifications to the customer when a load is finished, so no more guessing or wasted trips back to the store.

One of the smartest new features you’ll see on most quality commercial dryers today is reversing tumble action. Instead of spinning in one direction the whole time, these dryers automatically switch drum direction every few minutes. The difference is dramatic: bulky items like comforters and sheets don’t ball up or tangle, so they dry more evenly and completely—often in noticeably less time. That means real energy savings, higher daily throughput (more customer turns per day), and better-looking linens that keep people coming back. Operators who’ve added reversing dryers consistently report quicker load completion, reduced energy use, and happier customers who spend less time waiting around.

Bottom line? Don’t overlook the dryers when you’re running the numbers. The efficiency gains, safety improvements, and customer-pleasing features make them a key part of any smart retooling plan.

Customer Satisfaction: Do Newer Machines Deliver a Better Experience?

Yes, and the data is clear. CLA owner surveys show that approximately 85% agree or strongly agree that upgrading to new machines significantly improves customer satisfaction and retention. Customers consistently prefer quieter operation, superior cleaning performance, larger capacities for bulky items like comforters and blankets, faster cycles, and a clean, modern appearance that makes the entire store feel well-maintained. This is a BUT…your long term customers may be shocked at how little water and suds they see in the new machines and assume the machine is not working correctly. We are accustomed to the belief that more water plus more suds makes cleaner clothes. That is not the case, and some re-education of your customers may be necessary!

Having plenty of large-capacity machines and overall store cleanliness rank among the top factors that influence where customers choose to do their laundry. New equipment also means fewer “out of order” signs, which builds trust and encourages repeat visits. The death of a store starts with dirty floors and ratty-looking ‘out of order’ paper signs!

New vs. Older Machines: Durability and Lifespan

There’s no question that many older heavy-duty machines — especially classic Wascomat and Speed Queen models — have earned legendary status, with some still running reliably after 25–30+ years. Our laundromats had some machines that were eligible for induction to the Smithsonian Museum! Newer commercial machines typically have a prime service life of 12–15 years for heavy-duty front-loaders and dryers, and 5–7 years for top-load or home-style units.

While modern machines prioritize energy efficiency and electronic controls, quality new commercial units from reputable brands can still deliver 10–20 years of solid performance in laundromat conditions when properly maintained. However, they generally won’t match the extreme longevity of the old “tank-style” builds. High daily cycle counts in busy stores accelerate wear on bearings, seals, and motors regardless of the machine’s age.

Rule of Thumb: When Has a Machine Outlived Its Usefulness?

There is no single universal number or point in time, but experienced operators and CLA guidelines point to several clear warning signs: repairs needed more than once every 2–3 months, recurring major repairs exceeding $2,000, parts becoming difficult or expensive to source, visible rust or cosmetic damage that hurts customer perception, or utility consumption so high that it eats into profits.

A practical rule many distributors recommend is this: If a repair costs more than 40–50% of the price of a comparable new machine, it’s usually smarter to replace it. Take time to log repair frequency, downtime, and costs for each machine over 6–12 months. Compare your current utility usage against manufacturer specs for new models, gather customer feedback, and run the full payback analysis. If the numbers show improved net income after loan payments, it’s probably time to act.

Accounting Depreciation: How It Helps

Section 179 of the IRS Tax Code makes expensing new equipment one of the strongest incentives for replacement. This allows laundromat owners to deduct a large portion of the equipment cost — often up to the current annual limit of $1.25M to $2.5M depending on the tax year — in the same year the machines are placed in service. Bonus depreciation can cover much of the remainder, while standard MACRS depreciation spreads over 5–7 years.

These accelerated tax benefits dramatically improve cash flow and help cover loan payments. They consistently rank as a top reason owners decide to upgrade. Work closely with your CPA or tax professional, as limits and rules can change yearly.

When to Consider Professionally Refurbished Equipment?

Professionally refurbished machines are a smart option for budget-conscious owners, lower-volume stores, or partial upgrades. They cost substantially less than new equipment and can provide several additional years of service when purchased from a reputable refurbisher with solid warranties. However, they generally offer lower efficiency, shorter remaining lifespan, and higher potential repair costs compared to new units. Most experienced owners prefer new equipment in competitive, high-traffic locations where maximum savings and customer appeal matter most. I have had generally good luck with refurbished machines. However, as with any large purchase, be sure to vet the company selling the refurbished equipment and get in writing what has been replaced on the machines you will purchase. Some questionable vendors will dust an old machine off and call it “refurbished”. You want to see at a minimum new valves and hoses…and in some machines bearings, face plates, etc. Buyer beware.

Coin-Operated Machines: Still Relevant? App/Card Systems?

Coins are not extinct yet, but the industry is shifting rapidly toward cashless. More than half of U.S. self-serve laundromats now generate the majority of their revenue from card and app payments, with adoption rising sharply from about 30% in 2022 to around 55% today. Operators who switch frequently report revenue increases of 10–22% due to greater convenience, reduced theft and vandalism, real-time monitoring, and loyalty program capabilities.

Hybrid systems that accept both coins and digital payments currently offer the best of both worlds, especially for serving unbanked customers. Cashless payment systems are clearly becoming the dominant trend. One day your customers may do their laundry using fractional Bitcoin!

Financing New Equipment

Manufacturer and dealer financing from brands like Speed Queen and Alliance is very popular because it’s convenient, often includes promotional rates, deferred payments, and installation packages. Local banks, SBA loans, and specialized equipment lenders are also commonly used for greater flexibility. Down payments typically range from 0% to 30% depending on credit and project size.

Most Popular Brands in US Laundromats

Speed Queen and Alliance Laundry Systems brands (including Maytag, Huebsch, and UniMac) dominate the market for their proven reliability and durability. Other frequently chosen brands include Electrolux Professional/Wascomat, Dexter, Milnor, and Girbau. Speed Queen often leads in market share for traditional vended laundromats. Of course, your customers don’t care what name plate the machine carries and, with the exception Maytag, commercial equipment does not have laundry customer name recognition. Your customers simply want a clean environment and working equipment that can get them in and out quickly and clean!

Most Customer-Desirable Washer Sizes

Large-capacity front-load washers in the 30–80 lb range (roughly 4–6+ cubic feet) are by far the most requested. Customers strongly prefer being able to wash big loads — especially comforters, blankets, and family-sized bundles — in a single machine. A well-balanced mix with plenty of 40–60 lb washers paired with matching dryers keeps customer lines moving and drives repeat business. Hands down, our 60 lbs machines were the go-to machines for most customers. Bigger is a better wash, right? Not always, so our attendants would often assist customers by directing them to smaller, more load appropriate machines.

Other Key Considerations for Retooling an Existing Store

• Stepped replacement (row-by-row or high-use machines first) to manage cash flow and minimize customer disruption.

• Full store refresh including lighting, flooring, paint, seating, and bathrooms to maximize the impact of new machines.

• Proper equipment mix and layout, with dryer capacity matched to washers. How often have I seen laundromats with dozens of washers and a handful of dryers!

• Local market factors such as competition, demographics, and foot traffic.

• Available utility rebates and efficiency incentives.

• Your long-term plans for the business (avoid major investments right before a potential sale).

• Strength of the local service network and parts availability.

• Potential for increased daily turns and revenue from faster cycle times.

In With The New, Out With The Old?

One more practical question a lot of owners ask when it’s time to pull the trigger on new equipment is, “What do I actually do with the old machines?” The good news is you have several smart, money-saving options that can help offset your investment instead of just hauling everything to the dump.

Many equipment dealers and distributors offer trade-in programs, giving you credit toward the purchase of new washers and dryers when you buy from them—sometimes enough to knock a meaningful chunk off your net cost. If a trade-in isn’t on the table or you want to maximize cash, you can sell the used machines outright to refurbishing resellers or other laundromat owners. Specialty companies across the country actively buy used commercial laundry equipment in any condition, often pay competitive market rates based on age and working order, and handle the pickup and removal themselves at no extra charge to you. Some operators also list machines locally through industry networks or classifieds for direct sales to individual buyers. Either route turns those veteran units into real value instead of an expense, and it keeps good equipment circulating in the industry rather than going to waste.

Final friend-to-friend take: When your machines are inefficient, frequently breaking down, or turning customers away, the numbers usually show that a well-planned retooling pays for itself in 3–5 years while creating a more profitable, higher-value business with happier customers. It’s a significant investment, but one that most owners who pull the trigger say was well worth it.

Keep those machines spinning and the profits flowing!

Your laundry buddy,

Travor Lutz

The Laundry Operator Newsletter

(Data drawn from CLA resources, ENERGY STAR, manufacturer reports, and 2024–2025 operator surveys. Always verify current tax rules, rebates, and incentives with your CPA and local professionals.)