Are there still opportunities to own a Laundromat?
One question that comes up a lot from people interested in owning a coin laundry is if there are still opportunities out there. The answer is Yes.
In 2009 and 2010 there were laundries in some areas that closed down and the equipment was repossessed. There were a number of factors that led to this including easy money from loan companies, many distributors selling equipment due to the easy money, and what was a good location turned bad due to the economic issues and movement of transitional workers.
Many Laundromats survived as they were in good financial shape and were able to withstand the fluctuating markets.
So where does that leave us now. Some areas have seen some new Laundromats open and existing Laundromats have made some upgrades or are just running how they have been for years.
Areas throughout the country still do not have Laundromats available within a reasonable distance. These may be in smaller towns but in these cases the rent rates will be very reasonable as some landlords may have been years without a tenant. In the smaller towns adding a laundromat to an existing business may be a great opportunity.
Previously Laundromats added other revenues streams such as tanning beds, increased vending and video games. Maybe it’s time to add a laundromat to a convenience store to increase the customer base and allow a small laundromat to be profitable.
Hundreds of Laundromats around the country are running to the end of their lifespan. Although there really isn’t much of a business to buy as the equipment is probably old and even unusable you may be able to take over the lease and renovate, add new equipment and build the business back to what it once was.
In some cases it may take a small amount to buy out the existing owner but it never hurts to ask. Renovating an existing laundry could save over $30,000 in buildout costs over an empty building.
And what about all those foreclosed stores? It’s been a number of years since they closed and it’s possible the demographics have changed and a store would be viable again. And remember the stores that survived in the area might not have made any changes once the competition was gone so they are older and possibly run down now.
There are still opportunities to open a Coin Laundry and as they say in Real Estate it’s all about location, location, location.
Get the demographics, check out your competition and do your homework. The opportunity may be closer than you think.
If you have any comments please post them below.
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