Thinking of Buying a Laundromat Business in Australia? Here Are 3 Vital Questions to Ask
The laundromat industry in Australia has faced fluctuating demand due to urbanisation, shifting consumer preferences, and rising operational costs.
In 2024, total industry revenue is projected at $1.316 billion, with an annualised growth rate of 0.17% from 2008 to 2024.
Revenue is expected to increase at an annualised 1.93% through 2030, supported by demand for self-service laundromats, commercial laundry outsourcing, and premium wash-and-fold services.
Despite increased competition from in-home laundry appliances and serviced apartment amenities, opportunities exist in smart laundromats, eco-friendly solutions, and on-demand laundry services.
Buyers must assess financial sustainability, customer demand, and scalability to ensure long-term success.
1. Is the Business Financially Viable?
Why It Matters:
Laundromats generate revenue through self-service machines, wash-and-fold services, and commercial contracts.
Industry-wide profit margins stand at 10.80%, with revenue sources including self-service laundromats (51.4%), wash-and-fold services (21.7%), and commercial laundry contracts (18.9%).
Operators who diversify into premium and convenience-driven services achieve higher revenue per customer.
What to Check:
- Revenue sources: Does the laundromat rely solely on coin-operated machines, or does it offer wash-and-fold, pickup-and-delivery, or commercial laundry contracts?
- Operating costs: Are rent, utilities, and equipment maintenance sustainable, given that electricity prices have increased by 6.1% annually since 2020?
- Profitability strategies: Is the business leveraging smart washers, cashless payments, and energy-efficient systems to improve margins?
- Scalability: Can the laundromat expand services to increase recurring revenue and customer retention?
2. Does the Location & Market Position Support Growth?
Why It Matters:
The success of a laundromat depends heavily on location, foot traffic, and local demographics.
Laundromats in high-density areas with renters, students, and commercial businesses experience higher demand.
What to Check:
- Demographics: Is the business located near apartment complexes, student housing, or commercial clients who need outsourced laundry services?
- Competitive landscape: Are there nearby laundromats, dry cleaners, or serviced apartments that could impact customer demand?
- Accessibility & convenience: Does the location offer parking, extended hours, or mobile app bookings to attract customers?
- Service differentiation: Does the laundromat stand out with premium detergents, fast-drying machines, or loyalty programs?
3. Is the Business Aligned with Industry Trends & Future Growth?
Why It Matters:
The laundromat industry is evolving, with customers prioritising convenience, technology integration, and sustainability.
Businesses investing in smart laundromats, eco-friendly practices, and digital solutions are outperforming traditional models.
What to Check:
- Smart laundromat technology: Does the business offer cashless payments, mobile bookings, or remote machine monitoring for better efficiency?
- Eco-friendly solutions: Is the laundromat using water-saving machines, biodegradable detergents, or energy-efficient dryers to appeal to sustainability-conscious customers?
- Commercial contracts: Does the business have partnerships with hotels, restaurants, or medical facilities for bulk laundry services?
- Regulatory compliance: Are workplace safety standards, water usage restrictions, and equipment maintenance regulations met?
Ready to Invest in a Thriving Laundromat Business?
With growing urban populations and increasing demand for on-demand and eco-friendly laundry services, laundromats offer strong investment potential.
Success depends on financial viability, prime location, and technology-driven service enhancements.
Prospective buyers should conduct thorough due diligence to ensure long-term profitability and scalability.
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