How To Find The Best Location For Your Laundromat

Anyone familiar with the laundromat business knows how important the right location is to a store’s success. If you’re just starting your research into opening a laundry business, talk of “population density” and “demographic analyses” might sound intimidating. Don’t worry – finding the right location for your laundromat doesn’t need to be complicated!

When you partner with Laundrylux, our experienced team of real estate specialists will do the hard work for you and are guaranteed to find the perfect place for your store. If you’re ready to start your search, why not speak to an expert today? In the meantime, here are some helpful tips to get you thinking about what makes a great laundromat location!

Before starting your hunt, think about the type of store you will open

What kind of store do you want to run? A self-serve laundromat will target a different customer to a full-service store offering a wash & fold or delivery service. So as you read through the rest of this blog post, think about how each section relates to your specific goals.

Four steps to finding the right laundromat location:

  1. Identify your customers
  2. Analyze neighborhood demographics
  3. Assess the competition
  4. Find the perfect premises for your laundromat
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Step 1: Identify your customers

Finding the right location is all about getting as close as you can to potential laundromat customers, so the first thing you want to do is identify the kinds of people who will most likely visit your store. Of course, everyone who uses a laundromat is ultimately there to do laundry, but why would they choose your equipment over at-home appliances? Once you identify the reasons why a person might need to use a laundromat, you can start to look for neighborhoods where there are lots of these potential customers.

Why do people choose laundromats?

  • They are renting and don’t want to invest in a washer or dryer.
  • There are no laundry hookups or adequate facilities in their building.
  • They can’t afford to buy residential laundry appliances.
  • They have no time to do laundry.
  • They are seasonal residents.

Why renters use laundromats

Many renters can afford to buy at-home laundry appliances, but they choose not to because they don’t plan to stay in their current home long enough to make the investment worthwhile. Researching the right washer and dryer takes time and effort, not to mention the hassle involved in selling or transporting their appliance when they move out. People who share their rental accommodation with roommates also have the incentive to use laundromats. Purchasing appliances with someone who may not be there at the end of a lease can be unfeasible. It’s much easier and more economical for people in short-term rental accommodation to use a laundromat rather than purchasing their own equipment.

Why residents of older multi-housing properties use laundromats

Many older multi-housing properties were built before it was popular to own laundry equipment, so apartments in these buildings often don’t have hookups for washers and dryers. While these properties may have a laundry room, using a laundromat is favorable for several reasons. Laundry rooms often have a small number of machines, so residents often have to wait their turn for a free washer or dryer. The equipment may also be old with “Out of Order” signs hanging around for long periods. Using a local laundromat, therefore, is often quicker and takes better care of clothes than a multi-housing laundry room.

Why low-income residents use laundromats

Buying a residential appliance is simply not an option for some people. Washers and dryers are expensive, and for those living pay-check to pay-check, it can be hard to justify the expense. Many people use laundromats for years before they come close to spending the amount a washer and dryer would cost to buy.

Why people with limited time use laundromats

Whether they come for wash & fold services or high-capacity washers, more and more people use laundromats for the time savings they offer. Modern life is defined by busyness, and people have less spare time than ever – especially during a recession. Spending precious time doing laundry is not an attractive proposition for many working professionals, so they are often happy to pay a little extra for laundry services that give them more freedom in their day.

Why seasonal residents use laundromats

Whether it’s snowbird retirees going south for the winter or ski enthusiasts traveling in the opposite direction, many areas experience a rise in population during certain times of the year. These temporary residents may stay for months and need somewhere to wash their clothes during their stay. The nearest laundromat will be their best option.

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Step 2: Analyze neighborhood demographics

Having identified your customers, it’s time to look at neighborhood demographics to discover a suitable area for your store. When you partner with Laundrylux, we’ll provide a complete demographic analysis of your target area to identify its suitability, but it’s worth taking the time to get familiar with the most important factors you need to look out for.

Important demographic factors for laundromat businesses

  • Overall population density
  • Income
  • Renters vs. homeowners
  • Age
  • Family size
  • Language

Overall population density

The most critical demographic information you need is the total population density close to your laundromat. 12,000+ people per square mile is a good rule of thumb, while higher population densities will support larger stores.

If your store is in a downtown area or close to large factories, hospitals, and offices, then the daytime population (people present during regular business hours) may be a lot higher than the residential population. Make sure you pay attention to this demographic as these commuters could be potential wash & fold customers.


Self-service stores traditionally do best in areas with low to middle-income households. But depending on the services you plan to offer, those with higher salaries could also be potential customers. Because of this, many store owners will look for an area with a diversity of household incomes. They see lower-income households as potential self-service customers and higher-income households as possible wash & fold customers.

Renters vs. homeowners

Laundromat owners tend to prefer areas with a high number of renters. Within this demographic, however, we want to look a bit deeper. If there are a lot of renters living in multi-housing buildings in your area, you need to consider what kind of laundry facilities or hookups are available onsite. If the properties have state-of-the-art laundry facilities with row after row of high-performance washers and dryers, you may want to find a new neighborhood. Luckily for laundromat owners, this scenario is rare, and many renters will choose a well-run laundromat over their building’s laundry room.


An often overlooked factor is the age of the local population. Younger people tend to go through more laundry than older, retired people. A young person may wear one outfit to work or school, another to the gym, and a third for going out at night. In contrast, a retired person will likely wear a single outfit during the same period. Opening a laundromat near a college campus can be very profitable for this reason, especially if the laundry facilities onsite are not meeting students’ needs

Family size & structure

Many laundromat owners will look at the number of households in an area, but just as important is the average family size. The bigger the household, the more laundry to get through. Another important factor is single-parent homes vs. two-parent homes. A single parent raising children and supporting the family financially is more likely to seek the time-saving benefits of the local laundromat rather than spending hours at home getting through the family’s laundry.


Unlike other demographic factors, language will not help you determine whether a neighborhood is suitable for your store. It will, however, allow you to better meet the needs of your potential customers. In an area with lots of non-English speakers, it’s a good idea to put up signs both in English and in the language of your customers. Employing multilingual staff will also make your customers’ experience even more convenient.

Did you know? Electrolux Professional and Wascomat equipment come with Compass Pro. This easy-to-use interface can display two languages at once – perfect for neighborhoods where more than one language is spoken.

Keep an eye on trends & coming changes

Having identified your target customer base, you should have a good idea of which neighborhoods are suitable for a laundromat business. But before jumping to the next step, you need to think about the future of the area. While the neighborhood may be suitable today, will it still be suitable ten years from now?

Is there a new residential development planned in the neighborhood that will affect your store?

Perhaps the residents in your neighborhood fall mostly into low-income and middle-income categories, but the percentage of high-income residents has risen in recent years. Do you believe this trend will continue? If so, how will this affect your business?

Thinking about the future of a neighborhood will help you build a profitable business for the long term and help you achieve your business goals in less time.

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Step 3: Assess your competition

So you’ve found a neighborhood that you’re certain is suitable for a laundromat business, but someone else has gotten there first. Because the coin laundry business has been around for decades, this is a very likely scenario. So, should you go back to the drawing board? That depends on whether you think the neighborhood can support one more store. Do you believe you can build a better laundromat than the competition? Or would the owners of the existing laundromat be open to selling their store to you?

Is there room for your new laundromat business?

If there is an established laundromat in your target neighborhood, there may still be room for your new store. 12,000 + people per square mile is a good rule of thumb when deciding if there are enough customers for a laundromat to thrive. So, if the population density is higher than that number in your target neighborhood, there may be enough customers to allow two businesses to coexist.

Take a visit to your competitor’s store during peak hours. Are all of the machines in use with customers waiting for a free washer or dryer? Are all of the available parking spaces out front occupied? If the answer to these questions is “yes”, the neighborhood can likely support a second store.

Note: If your competitor’s store is not busy at peak times, it may be for reasons other than low population density. Are the washers and dryers old with lots of “Out-of-Order” signs? Are prices too high? Is the laundromat dirty and outdated? If so, could you do a better job?

Is your competitor willing to sell their business?

The coin laundry business has been around for decades, meaning that most of the neighborhoods you look at will already have an established store. But it also means that the existing store may need an upgrade. If your competitor’s store shows signs of age – particularly if it has old, outdated equipment – it may be time for a retool. The owner of a store like this may be open to selling their store if the right offer comes along.

This scenario is perfect for someone looking to get into the laundromat industry for the first time. You can retool the store with modern energy-efficient equipment to boost profits, and best of all, you will have an established base of loyal customers from day one.

Can you build a better laundromat business than the competition?

Suppose the demographics in your target neighborhood are not crying out for a new store and none of the established store owners in the area are looking to sell. You may still be able to build a successful laundromat if you believe that you can beat the competition. By outfitting your store with high-performance commercial laundry equipment that offers a better customer experience, you might just become the new favorite in town.

Did you know that investing in a Next Level laundromat means that you’ll stay miles ahead of the competition? With the fastest High Spin Washers and High-Efficiency Dryers on the market, you can provide superior customer satisfaction and throughput of under 45 minutes! Learn more about Next Level Laundry and contact our team of experts today.

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Step 4: Find the perfect premises for your laundromat

At this point, you have done the hard work of selecting the right neighborhood for your new laundromat. There is just one more step to follow – choosing the best lot for your coin laundry business. Like almost everything else in the laundromat industry, this step is all about your customers. Where can you place your store so that your business is easy for new customers to find and convenient for them to travel to regularly?

What makes a great laundromat location?

  • Good visibility
  • Plenty of off-street parking
  • Proximity to popular locations
  • A high-traffic street
  • A low speed limit

Make sure your store is visible

Ideally, you should choose a location that is easily visible from the street. If you think it will be difficult for passing drivers to notice your laundromat, you can always put up signs in prominent locations.

Choose a lot with enough parking spaces

Except for stores situated in very high-density city locations, every laundromat needs abundant parking spaces to succeed. Make sure you have enough spaces for customers to park during peak evening and weekend hours.

Select a lot near popular locations

Convenience is critical in the laundromat business. If your customers can easily pass your store on their way to another destination, you’ll quickly gain a loyal base of returning customers. Placing your store near a supermarket, for example, will enable them to do their grocery shopping while waiting for their laundry. Locations near places of employment are also convenient for wash & fold customers who can drop off their laundry in the morning and pick it up after work.

High-traffic streets make great locations

Busy streets make great locations for laundromats, as they offer great visibility and convenience to your customers. A high-traffic street is an ideal location.

Low-speed-limit streets are best

While high traffic is good, you don’t necessarily want to place your store beside a freeway. On a low-speed-limit street, new customers have time to notice your store. And to make it easy for customers to access your laundromat, choose a location with an easy entry point from the road.

Ready to start your laundromat journey? Laundrylux has decades of experience in the laundry industry and specializes in helping new investors with everything from finding the ideal location to financing and marketing their store. Take the first step and contact us today!