Laundromat Failure Rate: Should You Start a Laundry Business?




photo of woman standing inside the laundromat

Laundromats are a good business to start, but they’re not always successful. The laundromat failure rate is low because there are many factors that can affect the success of your laundromat. Here we’ll look at the factors that lead to failure, as well as what you can do to ensure your laundromat stays alive and well for years to come. In the end, the laundromat failure rate is 5% to 10%. This means that 90%+ of laundromats make it past the first 3 years and are considered successful.

12% of laundromats fail in the first year

While the laundry industry is not a new one, laundromats are. Because of this, there aren’t any statistics about their failure rate available. What we do know is that it’s high. This can be attributed to a few factors:

  • Laundromat businesses require a lot of capital. You need to purchase equipment and supplies from the outset, which can be difficult if you don’t have access to capital or experience running a business.
  • Laundry facilities require maintenance and upkeep on a regular basis—cleaning machines, changing bins out for clean ones after each use—which can take away from time spent marketing your business and attracting clients who will come back again and again!

30% fail in the second year

This is a high failure rate, but it’s not a reason to panic. In fact, this is a good reason to buy and run a laundromat. Laundromats are an investment opportunity and/or business model that can benefit you as an owner, your employees (if you employ workers), and the community at large.

To start with, buying into the laundry industry is very profitable over time because of its low startup costs compared to other businesses such as restaurants or retail stores.

50% fail in the fifth year

Laundromats are a risky business. The failure rate is high, and the average laundromat owner will last only four to five years before their business goes under. It’s not unheard of for a new laundromat to open, only to close within six months or so.

Laundromats are expensive to run, with significant ongoing costs. These include:

  • Utilities (water, electricity)
  • Rent/mortgage payments on your building(s)
  • Insurance policies (liability coverage in particular) and other insurances related specifically to your laundromat business (workers compensation etc.)

Laundromats have a high failure rate.

The failure rate is a term used to describe the number of businesses that fail for every 100 businesses started. In the U.S., failure rates are typically very high, especially in comparison to other countries. The failure rate for laundromats is particularly high compared to other industries and sectors of the economy. In fact, most laundromats fail within their first year of business; only 15% survive more than five years!

Whether they’re failing due to poor management or a lack of funding, here are some ways you can help your laundry business succeed:

Why do laundromats fail so much?

Laundromats are a high-risk business and one of the most common causes of failure for laundromat owners.

There are a number of reasons for this, but the most important one is that it’s difficult to manage and operate. Even if you have experience running a business in another industry, it will take time to learn how to run your own laundromat successfully.

Laundry businesses require a lot of work, both on your part and on the part of your employees (if you hire them). Running equipment can be challenging because different machines need different amounts of maintenance and cleaning. That means you’ll have to devote time every day or week depending on how often customers use those machines.

The costs associated with operating a business like this may also surprise you: start-up fees are usually higher than they would be with other kinds of businesses because they require more upfront investment; property taxes can add up quickly as well since laundries tend not only need floor space but also parking spaces—and if there aren’t enough spots available nearby then customers won’t want to drive all the way across town just so they can bring their laundry back home again later!

Laundromats have a high Success rate

In comparison to many other startup businesses, the laundromat business is actually a high success rate business. Currently, about 90% of businesses become successful in this industry.

Generally speaking the laundromat industry has a 35% ROI for investors and can make anywhere from 4k to 10k per month in profits.


We hope that this article has been useful for you and your business. We know that owning a laundromat can be a challenging task, especially when it comes to avoiding failure. The best way to avoid failure is by being prepared with the right knowledge and tools before you start your journey as an entrepreneur. We hope you learned about the typical laundromat failure rate in this post. With our help, we hope that you have learned some information about laundromats today!

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