Coin-operated Laundries
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,600 coin-operated laundries in the US operate facilities with coin-operated or similar self-service laundry and dry cleaning equipment or supply and service equipment in other locations, such as apartments and dormitories. Some operators offer drop-off laundry services and some facilities offer a snack bar, coffee shop, or Wi-Fi access to occupy customers as they wait. Coin-operated laundries are also known as coin-op laundries, self-service laundries, and laundromats.
Dependence on the Rental Market
The coin-operated laundry business is highly dependent on the apartment rental market and occupancy rates.
Capital-Intensive Operations
The coin-operated laundry business is capital intensive and requires firms to regularly invest to maintain and replace equipment and implement new technology.
Industry size & Structure
The average coin-operated laundry operates out of a single location, employs about 4 workers, and generates about $560,000 annually.
- The coin-operated laundry industry consists of about 9,600 firms that employ about 40,000 workers and generate about $5.4 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 41% of industry revenue.
- Large firms, such as CSC ServiceWorks and Wash Multi-Family Laundry Systems, typically operate coin laundries in multi-unit housing settings, such as apartment complexes and dormitories.
Industry Forecast
Coin-operated Laundries Industry Growth
Recent Developments
Jul 16, 2024 - Sales, Employment Higher
- Total revenue for dry cleaning and laundry services was $8.8 billion in Q1 2024, a 6.7% increase compared to a year ago and 1.5% higher from the previous quarter, according to the latest data from the Census Bureau. Coin-operated laundry industry employment increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics.
- Coin-operated laundry services may need to take steps to protect workers from heat illnesses under a new proposed rule from the US Department of Labor (DOL) designed to protect workers from extreme workplace heat. The proposed rule requires employers to develop an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat, per the DOL. The rule asks employers to evaluate heat risks and implement requirements for drinking water and taking rest breaks. In addition, employers will have to provide training, develop procedures to respond to workers who show signs of heat-related illness, and assist those experiencing a heat emergency. The Occupational Safety and Health Administration (OSHA) currently conducts heat-related inspections under a program launched in 2022 to prevent worker injuries and illness. Laundry facility workers may be exposed to extreme heat in buildings that are not properly ventilated or cooled.
- The US coin-operated laundry industry is projected to grow at a CAGR of 1.6% from 2024 to 2028, slower than the overall economy's growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The report noted that consumer confidence levels are expected to be higher in the forecast period, which bodes well for the various other services industries, which includes coin-operated laundries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. The recent rise in remote work has also impacted the dry cleaning and laundry services industry. The forecast notes that 30% of employees worked remotely in 2023, compared to less than 10% before the pandemic. Per the report, "Personal consumption spending for dry cleaning and laundry services may rise as more people return to traditional workplaces and seek a wider array of entertainment and recreational activities.”
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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