All your questions answered

Expect to invest between between $150,000 and $500,000 in setting up a laundromat from scratch. Costs will vary depending on size, rent, equipment capacity, number of machines, services offered and fit-out.

Subject to approvals, Richard Jay can finance your entire laundromat set-up through Capital Plus if you have a good credit rating, enough money to service the lease and access to funds for store furnishings and advertising. This includes fit-out, equipment, installation and accessories – everything you need to establish your laundromat.

There are two types of laundromats: self-service and fully serviced. The self-service business model is where you provide high-quality commercial washers and dryers in a retail space and charge a fee per load of laundry. Opening hours are usually between 6am and 11pm, with some businesses opting for a 24-hour service. The majority of self-service laundromats do not require long hours spent on the business – and typically are managed by the owner and/or family members. 

Fully serviced laundromats encourage local businesses and time-poor customers to drop off loads of washing, ironing and dry cleaning for delivery or pick-up later on. This serviced laundry option is usually provided in addition to self-service laundry facilities. 

The average laundromat facility is a compact 186 square metres, but some premises can be as large as 465 square metres.  

The term laundromat” was coined in the mid-century – a portmanteau of ‘automat’ and ‘laundry’. 

Many successful laundromats combine laundry with other services. Some savvy laundromat owners install ATMs and food and beverage vending machines for their customers. Other bright ideas include:

• Kids’ corner
• TV & video games
• Free wifi
• Pet only machines
• Garment repairs & alterations
• Wash ’n’ fold service
• Pick up & delivery

That all depends on laundromat charges Australia and how well the business is run. We’ve worked with laundromat owners who make more than $15,000 net profit a month. On the flipside, a poorly managed business can be costly.

In terms of return on investment, a rough guide is approximately 20-35% if your laundromat is already well established and in a good location. This assumes that your laundromat is unattended, with wages being the highest cost in the Laundry business.

We’ve provided more information on opening a laundromat profitability here.

As our society moves further and further away from cash, it’s important that your laundromat follows suit and accommodates your customer
base by providing cashless or combination payment options.

We’ve provided detailed information and answers to all of the questions we receive regarding card systems here.