A Guide to

Investing in
Laundromats
LOADS OF POTENTIAL
Table
of Contents

05 Welcome

06 Why Invest in Laundromats

07 An Essential Business
08 One of the Best Investments
09 Consider These Advantages

10 Getting Started
11 Determining Start-Up Costs
12 Considering Your Location
13 Other Business Considerations

14 Equipment
15 Choosing Equipment
16-17 Speed Queen Offers a Full Solution
18 Equipment Technology: Increase Revenue
19 Equipment Technology: Minimize Costs
20 Business Technology
21 Manage Your Business with Ease
22-23 Dive Deeper into the Suite

24 How to Make
Additional Revenue

25 Expenses
26 Operational Costs: What to Expect
27 It Pays to Accessorize and Promote

28 Become an Investor
4
Is a Laundromat
Investment for you?
Welcome to Speed Queen’s guide to laundromat investing.

Speed Queen® has been a laundry industry leader for more than 100 years.
Through our network of distributors, we have helped thousands of investors
start a laundromat business.

Speed Queen and Alliance Laundry Systems have a rich history of bringing
new, groundbreaking products and technologies to market. We innovate
to deliver real savings and additional profitability to you – that means
significant return on investment.

As you read through this guide, you will learn that laundromats are one
of the most successful small business investments. While you still need
entrepreneurial qualities—willingness to take a risk, motivation and
persistence—you will find that a laundromat investment is one of the
best small business ventures.

We encourage you to visit speedqueencommercial.com to learn more

about laundromat investments and find a distributor near you. Your
local Speed Queen distributor can help you every step of the way—
from financing and site location to a grand opening. In fact, many
of our distributors are laundromat owners themselves!

We hope to welcome you soon as a new laundromat investor!

— The Speed Queen team

5
 Why Invest in
Laundromats?
6
 An Essential
Business

Laundromats are an essential business in nearly every community. In major

metros, the suburbs or rural small towns, laundromats fill a basic need
for clean clothes year-round. For that reason, laundromats are recession
resistant and remain profitable during economic downturns.

Recession resistant Profitable during Unaffected by

economic downturns seasonality

7
One of the Best Investments
Not only do laundromat investors enjoy business stability during troubling
economic times, but they also see high returns. U.S. laundromats earn a
higher return on investment than many alternatives.

Business success rates*

20% 30% 97%

Restaurant Retail Store Laundromats

Source: *smallbusiness.chron.com/businesses-high-failure-rates-61640.html

8
Consider These
Advantages:

96.85% Success Rate

Reap the benefits with low risk.

25-35% Average ROI

The average cash-on-cash ROI
exceeds other investments.

Adaptable to Your Lifestyle

Laundromat management can be
flexible to fit your schedule.

Low Labor Costs

70% of laundromat investors
have 0-3 employees.

Tax Advantages
You may be able to write off
equipment purchases and claim
equipment depreciation as a loss.**

Simplified Accounting
Because customers pay up front,
you’ll have fewer accounting
requirements.

Source: **Consult your tax advisor to determine your tax advantages.

9
 Getting
Started
10
Determining Start-Up Costs
Laundromats vs. Other investments

$1 million $1 million $1 million

$500,000

Laundromat* Storage Convenience Car Wash****

Units** Store***

Consider how you’ll finance the venture:

• Equipment manufacturer financing

• Traditional financial institution
• Laundry industry lender
• U.S. Small Business Administration loan
• Family and friends

Source: *Speed Queen Financial Services estimate

Source: **debtfreedr.com/are-storage-units-profitable
Source: ***biz2credit.com/blog/the-best-financing-for-buying-a-gas-station-franchise/
Source: ****koronapos.com/blog/how-to-start-a-car-wash-business/

11
Considering Your Location
The majority of laundromat customers live within one mile of the store.
They likely rent their home or apartment and don’t have access to
on-site laundry equipment. Some of them may be college students
living off campus. It’s important to understand your community’s
demographic makeup when choosing a location.

You then might consider one of the following scenarios:

RENT BUY BUILD

Lease and build Buy—and perhaps Build from

out available remodel—an scratch
commercial space existing laundromat

Your local Speed Queen distributor can help you find a site or a laundromat
for sale. They will also help you find a reputable contractor and guide you
through the construction process, if needed.

12
Other Business Considerations
There are, of course, many other details to consider
when starting a business. Here are a few:

Write a Apply for licenses

business plan and permits
Not only does a business plan help Local and state licenses and
you improve your chances of success, permits may be needed to
but it likely will be a requirement to occupy commercial space and
obtain financing. to run your business.

Form your Get business

business insurance

Determine how your business Make sure you have sufficient

will be organized—as a sole coverage for your business
proprietorship, partnership entity and your property. It’s
or Limited Liability Company. best to compare quotes from
several companies.
Choose a
business name
Make sure it will resonate with
your customers and that it’s not
already being used.

13
 Equipment

14
Choosing
Equipment

Once you have a location, it’s time to consider your equipment mix.
Nobody in the business has a wider range of products, controls, and
systems than Speed Queen. You’ll also have peace of mind that all
Speed Queen equipment is manufactured by Alliance Laundry Systems....
unlike other companies who source products from other manufacturers.

15
Speed Queen® Offers
a Full Solution
Speed Queen® prides itself on offering laundromat owners a variety of
solutions to meet their location’s specific needs. Our highly experienced
distributor network is made up of experts tapping into their industry
knowledge to match not just the best product, but the best overall
solution to deliver the best return on investment (ROI).

Hardmount Washer-Extractor
Since there have been laundromats, hardmounts
have been the workhorses of the wash side. Why?
Rugged design, superior out-of-balance tolerance,
and their long lifespan have made them the go-to
product. Their solid price point also helps them
deliver exceptional ROI, particularly when equipped
with the Quantum® Touch control.
Ready to learn more?

16
 Softmount Washer-Extractor
When you have found an excellent location, but the
building has a basement and poured foundations
are not an option, softmounts make the location
viable. Their high G-Force extraction can be
attractive for owners, but the tradeoffs are more
moving parts, lower out-of-balance tolerance, and
generally a shorter lifespan than their hardmount
counterparts. On the plus side, if you love the
Quantum Touch control and its exceptional
ROI, you can get your Speed Queen softmounts
equipped with this game changer.

Stacked Washer-Extractor/Tumble Dryer

When the perfect location comes with a small
footprint, Speed Queen stacked washer-extractor/
tumbler dryers give you two machines in the
space of one, often making the location viable
for your business. All the features and benefits
of a hardmount washer-extractor and tumble
dryer – including the Quantum Touch control –
give owners the performance and profit-producing
power their business needs.

Single Tumble Dryer

With fewer moving parts, you’ll
have fewer maintenance issues.

Stacked Tumble Dryers

Get twice the capacity in less space.

17
Equipment Technology:
Increase Revenue
The latest equipment offers controls and technology to increase profits.
Technology also streamlines laundry day for your customers, a perk
that can help make you their laundromat of choice.

These are some of the features available on the latest laundromat equipment:

Cycle Add-Ons Time-of-Day Pricing

Cycle add-ons (such as Increase pricing during peak
an extra rinse cycle) makes hours of operation or mark
it easy to upsell. 30% of prices down to boost usage.
customers upgrade cycles
if they are available.

Multi-Level Pricing Lucky Cycle

Charge more for premium Encourage customer
wash cycles to help loyalty with a free wash or
offset utility costs. dry after a predetermined
number of cycles.
18
Equipment Technology:
Minimize Costs

Programmable Water Levels*

Control water costs by modifying the
amount of water used for each cycle.

Auto Water Leak Detection*

Receive an alert if your drain system
is leaking or obstructed.

Low Power Mode & Shutdown Assistant

Program machines to go into low power mode
or shut down when your store is closed.

*Not available on all washers.

19
 Business
Technology
20
Manage Your Business with Ease
Today’s equipment also comes with the ability to seamlessly integrate
technology that helps you run a more profitable business and lets your
customers pay the way they want—even through a smartphone app. For
example, Speed Queen Insights connects laundromat owners to every
aspect of their business.

Speed Queen® Insights technology suite

Owner Dashboard Customer App

Customer Relationship Payment Center

Management

21
Dive Deeper Into the Suite

Owner Dashboard Customer App

The dashboard is the single source Give customers the option to use
of data for all your machines and their cell phone to pay, monitor
laundromat locations. Access wash and dry cycle status, and
real-time revenue, change prices, receive a notification when the
control machines, accept mobile cycle is finished.
payments and more.
22
Customer Relationship Management
Make marketing to your customers easy
with text, email or in-app messages.
Track promotional campaigns
and monitor their success.

Payment Center
Install this easy-to-use kiosk so customers
can pay for machines with cash, credit card,
stored value or a key card. They can also
load funds to their online wallet.

Speed Queen also has partnered with CleanCloud® to

offer a point-of-sale solution that easily integrates with
the Speed Queen Insights Owner Dashboard.
Visit cleancloudapp.com/register for a free trial.

For more, visit speedqueencommercial.com/insights.

23
 How to Make
Additional
Revenue

In addition to investing in equipment that

offers easy upsells with premium wash
and dry cycles, there are other ways to
make additional revenue in a laundromat.

The most common added service is

Wash-Dry-Fold (WDF). For the cost of
a wash and dry plus an additional service
fee, WDF is for customers who prefer to
drop off their laundry for you to wash,
dry and fold.

In addition to WDF, other revenue-

generating service include offering:

Laundry delivery services

Laundry detergent, fabric softener

and stain remover

Laundry supplies, like bags, hangers

and baskets

Snacks and beverages

24
Expenses

25
Operational Costs:
What to Expect
Like any business, you’ll need to plan for operational expenses. Most
operational expenses are typical for any business—accounting and
legal fees, payroll, insurance, rent or property tax, supplies and
advertising/marketing.

Utility costs are one of the most significant expenses for a laundromat.
Water and heating can range between $200 and $2,000 per washing
machine per year.* The newer the machines, the more energy efficient
they will be, saving you thousands in utility expenses annually. This
does not include utilities needed to run your store.

You’ll also want to set aside money for machine maintenance and
repairs. As is to be expected, the newer the machines, the less
maintenance and repairs you’ll have. Plus, when you choose Speed
Queen equipment, you’ll feel confident in your investment—Speed
Queen is made with all steel parts and designed to last 30,000+ cycles.

*Source: https://howtostartanllc.com/business-ideas/laundromat

26
It Pays to Accessorize
and Promote
Besides buying typical supplies—from signs to trash cans to toilet paper—
you’ll also want to think about how to accessorize your store to attract
customers. Having carts and hangers available is the norm.

But also remember that most customers wait for their laundry.

By offering an experience—rather than just a place to do laundry—

you’re more likely to be the laundromat of choice in your community.
Today’s modern laundromats have waiting areas with comfortable
seating, televisions, tablets, and children’s books and toys. Some offer
snacks and beverages.

Finally, you’ll want to install a security system for your protection

and for your customers’ peace of mind.

27
Become an
Investor
Are you Ready
to get Started?
If you’ve decided a laundromat investment
is for you, contact your local Speed Queen
distributor. They offer support and resources
from the day you decide to invest until your
store opens and beyond.

Business planning

Location selection

Market research

Financing

Laundry Design

Equipment selection and installation

Store construction or remodeling

A grand opening

Business marketing and promotion

Find your local distributor at

speedqueencommercial.com/en-us/locator.

28
29
TO LEARN MORE, OR TO FIND A DISTRIBUTOR IN YOUR AREA, VISIT SPEEDQUEENCOMMERCIAL.COM
ALLIANCE LAUNDRY SYSTEMS - SHEPARD ST, RIPON, WI 54971 - 1.800.587.5458

Consult your Speed Queen® distributor for details. For the most accurate information, the installation guide
should be used for all design and construction purposes. Due to continuous product improvements, design
and specifications subject to change without notice. The quality management systems at Alliance Laundry
Systems’ Ripon facility has been registered to ISO 9001:2008.

Speed Queen® is a registered trademark of Alliance Laundry Systems LLC.

AC23-0094 ©2023 Alliance Laundry Systems LLC.

Speed Queen by Alliance Laundry Systems