Laundromats are on every small business owner’s minds lately, and for good reason. Simple, low-effort builds, with fitout costs ranging from as low as $200,000 to upwards of $500,000 depending on size of the premises and quality of the machines, have turned laundromats from this weird, niche business into a genuine investment.
But laundromats, though resilient as far as businesses go, are extremely location-dependent. A laundromat succeeds or fails based solely on where it’s located, and the right location can transform a laundromat from a business that’s just barely ticking along into a serious money maker. That, of course, then begs the question: what is a good laundromat location? What should you look out for? Any location traps to avoid? If running a laundromat is something you’re genuinely interested in, then this kind of information should be one of your first, and fundamental, considerations.
Parking within close walking distance (ideally <20m)
Regardless of how many bells and whistles you pack into your dream laundromat, your customers are still going to need to lug their dirty clothes from their car to your business (unless you offer some sort of premium laundry carrying service, but that defeats the entire point of a hands-off, passive business that laundromats are known for!). No one wants to carry their laundry any further than they absolutely have to, and if they have to choose between a fancy new laundromat that requires them to walk half a block versus a run down, tired-looking one that’s ‘just okay’ with a front door only five metres from their car, they’ll pick the closer one 9 times out of 10. This just boils down to simple physics: make sure that whatever location you choose faces out onto a street with on-street parking, or better yet, onto a shopping centre car park. Your customers will thank you!
Demographics matter: opt for renters over buyers
Laundromats provide an essential service for the right kind of person. More often than not that kind of person is someone with low income, who probably rents their home, and can’t afford the significant up front cost of purchasing a washing machine and/or dryer. When scouting for a location, make sure you look into that location’s demographics: median income, renters vs owners split, and age. Are they young and do they rent? That’s a solid pick. Are they older and do they own? Not so great for a laundromat.
Anchor tenants are key. Think Woolies/Coles or other core retailers
Let’s face it: no matter how highly you think of your laundromat, it’ll never drive the amount of foot traffic something like Woolworths or Coles will. Laundry just isn’t as essential as groceries, at the end of the day. That’s why it’s key to piggy-back off the kind of traffic these businesses generate, and find a location that unlocks incidental visits, not just purposeful ones. Opening a laundromat in a shopping centre with a Woolworths two doors down means customers will be able to tick more than one chore off their list in a single visit, and that’s exactly the kind of convenience your laundromat needs to offer.
Look out for competitors in unlikely places
Laundromats, unlike cafes, don’t tend to play super nicely with one another when in close proximity. That’s why it’s important, when scouting a location, to find a spot that’s empty of direct competitors (ie. other laundromats) and indirect competitors (such as dry cleaners, in-person laundry services, and locker laundries). However, you don’t need to completely rule out a location just because there’s already an incumbent — sometimes the population and demographics of an area call for multiple laundromats. In those cases, it’s important to thoroughly research your potential competitors and figure out what you bring to the table that they don’t. Free wifi, new machines, status checking apps — even tables and chairs for people to work from while they’re washing their clothes can all provide a leg up on competing laundromats.
Picking the perfect spot for your laundromat can be a daunting and overwhelming experience, particularly if you’ve never gone through the process before. Here at Mappr, we offer simple, straightforward tools at low or no cost to you that can help give you the confidence you need to make that decision. Check out Mappr Location Report and Mappr Suburb Report (coming soon).