Industry Insiders Review the Past Year – And Unveil the Key Factors That Likely Will Shape the Laundromat Business in 2025
As we prepare to turn the page on 2024, the laundromat industry is undergoing a remarkable transformation – driven by innovation, sustainability, changing consumer preferences, and other outside factors. Modern laundromats are embracing technology and design to elevate the customer experience. Key trends such as smart machines, cashless payment systems, and on-demand services are reshaping the industry, making laundromats more efficient and user-friendly than ever before.
Beyond technological advancements, laundromats also continue to evolve in-to community hubs and lifestyle spaces. More and more store owners are integrating additional services and amenities to attract a broader clientele and maximize revenue streams. This shift reflects a growing recognition that customers value convenience and connection alongside practicality.
As these trends converge with today’s economic conditions, political climate, social trends, and regulatory factors, we reached out to a number of laundry professionals for their insider perspective on an industry that’s clearly poised to redefine itself for a new era:
Allen Berndt
Regional Sales Manager
Dexter Laundry
The laundromat industry is heading into 2025 with a mix of optimism and caution. While the business continues to grow and evolve, owners must navigate a landscape shaped by economic pressures, labor challenges, and new opportunities.
One of the most significant challenges of 2024 was the difficulty in finding high-quality locations for new laundromats due to low commercial vacancy rates. However, this trend is expected to shift in 2025. The downsizing or closures of chain restaurants, drug stores, and banks are opening up prime locations that often meet the needs of laundromat operators. For store owners looking to expand, this increased availability of quality real estate presents an exciting opportunity to tap into previously inaccessible markets.
Like many industries, laundromats continue to grapple with rising costs. Labor shortages, increased minimum wages, higher utility bills, and escalating insurance and lease rates are all pressing concerns. To stay ahead, owners must review expenses annually and ensure their vend pricing reflects these changes.
Now is also an opportune time for owners to consider investing in energy-efficient equipment. Such machines not only reduce operational costs but also generate more revenue per customer, helping owners offset rising expenses.
The laundromat industry is moving toward higher-quality stores with fewer neglected “ZombieMats.” Many owners are expanding into wash-dry-fold and pickup-and-delivery services to maximize revenue streams. While these services offer significant growth potential, they also introduce complexities to what was traditionally a straightforward business model. For those considering these expansions, proper planning is crucial. CLA and the association’s annual WDF Workshop are valuable resources for owners looking to succeed in this growing segment.
Labor shortages and rising costs remain key obstacles. Even as minimum wages increase, many potential employees are unwilling to work at entry-level pay. This creates pressure for owners to offer competitive wages, adding to operational costs. Finding reliable staff will remain a priority and a challenge throughout the year.
The technological advancements in laundromat management systems are a bright spot for 2025. These tools allow owners to operate multiple stores more efficiently and profitably, from monitoring equipment usage to optimizing customer experiences. As technology continues to elevate the industry, it provides a path for operators to streamline their businesses and stay competitive.
So, as 2025 unfolds, the industry is well-positioned for growth, thanks to new development opportunities, evolving services, and technological advancements. However, rising costs and labor challenges will require owners to adapt and innovate. By staying proactive and embracing change, laundromat owners can navigate these headwinds and make the most of the year ahead.
Dennis Diaz
Spynr
New York City
As we head into 2025, laundromats are evolving beyond their traditional role. With significant trends from 2024 shaping the industry, the coming year presents exciting opportunities and challenges for store owners.
Data security emerged as a critical issue in 2024, and laundromat owners must prioritize it in 2025. As the industry sees an influx of new investors and greater reliance on technology, it’s crucial for owners to maintain control over their data. Customer information, transaction histories, and operational insights are invaluable assets that need protection. By implementing robust backup systems, owners can safeguard their businesses from disruptions caused by changes in tech providers or data breaches.
Artificial intelligence was one of the most transformative business stories of 2024, and laundromats stand to benefit in 2025. AI tools can revolutionize how owners manage their businesses, offering cost-effective ways to market services, engage with customers, and handle routine inquiries. From crafting tailored promotions to automating FAQs and improving customer service, AI allows owners to scale operations without overburdening staff.
In a world increasingly driven by digital interactions, laundromats have a unique opportunity to foster real-world connections. By hosting events such as “Laundry Day Socials,” hobby workshops, or family-friendly activities, laundromats can become vibrant community hubs. Partnering with local businesses for pop-ups or tastings can further enhance their appeal, trans-forming laundromats into spaces where people gather, connect, and build loyalty. These efforts not only strengthen ties with customers but also provide a competitive edge in the marketplace.
While technology and community-building offer immense potential, custom-er education will be a key challenge. Some patrons may be unfamiliar with features like contactless payments or AI-driven tools, while others might need encouragement to participate in community events. Simple, friendly explanations of these services and invitations to events can ease the transition, ensuring customers feel comfortable and valued.
The most exciting prospect for 2025 is the chance to redefine laundromats as integral parts of their communities. Beyond offering convenience and clean clothes, laundromats can become places where people gather, connect, and find a sense of belonging. By combining cutting-edge technology with a community-first approach, laundromats can evolve into unique spaces that meet both practical and social needs, setting the stage for long-term success.
2025 is shaping up to be a pivotal year for laundromats – one where innovation and community spirit come together to redefine the industry.
Jason Fleck
Vice President, Vended Sales
Laundrylux
The industry stands at a pivotal juncture, poised for substantial transformations and facing existential challenges. For many, the upcoming Clean Show next year promises to unveil new products and technologies that have the potential to meet these challenges and revolutionize the industry.
One notable trend is the expansion of larger stores. These larger facilities aim to enhance customer experiences by offering a wider range of services. How-ever, this consolidation could potentially limit the market for small independent operators, emphasizing the importance of strategic partnerships and niche market positioning. Visionary “mom and pop” laundromat operators are pro-actively addressing this challenge, keeping corporate encroachment at bay.
Real estate is becoming more of a strategic play, and this year – more than any year I can recall – we’ve had to learn things, adopt new tools, and find better locations to stay ahead of the pack.
Economic factors, such as the recent election cycle and interest rate shifts, al-so play a significant role. With falling interest rates once again in the discussion, the potential for reduced operational costs and increased funding opportunities could fuel industry growth.
Nevertheless, existential threats loom large. Legislation aimed at banning certain gas-burning appliances, coupled with growing awareness and regulatory action against microfiber pollution and forever chemicals usage, underscore the industry’s need for proactive adaptation. Addressing these environmental and regulatory challenges will require collaborative efforts from all stake-holders to drive innovation and implement sustainable practices. This is a critical task that must be led by CLA and supported by everyone. Our livelihoods depend on it.
Although the laundry industry faces both promising advancements and formidable challenges, its ability to adapt to technological, economic, and legislative shifts will determine its future trajectory. As we head into 2025, staying in front of these trends and challenges will be crucial for sustaining growth and ensuring the industry’s long-term viability.
Moving forward, I am thrilled about an industry that prioritizes a high return on investment without compromising customer experience.
Mike Hand
Vice President, North America Commercial Central and East
Alliance Laundry Systems
The laundromat industry saw significant shifts in 2024, setting the stage for both opportunities and challenges in 2025. One of the most notable trends is the booming growth of wash-dry-fold and pickup/drop-off services. Initially fueled by the pandemic, these services have now become a cornerstone for many laundromats, contributing a substantial portion of their monthly revenue. As demand for convenience grows, this trend is expected to broaden the customer base and redefine profitability for laundromat owners in 2025.
However, the economic climate presents challenges. Rising costs for essentials like utilities and materials have strained budgets, and many owners have hesitated to adjust vend pricing accordingly. This reluctance, while understandable, could mean lost revenue that cannot be recovered. As 2025 approaches, owners may need to revisit pricing strategies to offset these in-creases and maintain margins.
Opportunities abound for laundromat operators who embrace innovation and service enhancements. The industry’s resilience post-pandemic has attracted new investors, driving improved customer experiences and higher standards across the board. This momentum suggests a bright future for those willing to adapt.
Conversely, construction costs remain a major pain point, with little sign of relief. Election results and potential policy shifts could also bring economic uncertainties, underscoring the need for owners to remain agile and prepared for possible headwinds.
Overall, 2025 holds promise for laundromats that focus on service expansion and strategic planning, even as they navigate the challenges of a fluctuating economy.
Paul Hansen
Laundry Growth Partners
Chicago
One of the most notable trends in 2024 was the surge in investment from private equity firms and the expansion of laundromat franchises. This influx of capital and the standardization offered by franchises will undoubtedly intensify competition for independent laundromat owners. While this could pose challenges, it also presents opportunities for independent owners to differentiate themselves through exceptional customer service, unique amenities, or specialized services.
In addition, consumers are increasingly seeking convenience and a pleasant laundry experience. The growing demand for wash-dry-fold services presents a lucrative opportunity for laundromat owners to diversify their revenue streams.
As economic conditions improve, we can expect continued interest from private equity firms and other investors seeking opportunities in the laundromat industry. This influx of capital will fuel expansion, modernization, and technological advancements.
The integration of technology will continue to reshape the laundromat experience. Smart machines, mobile apps, and IoT devices will enhance customer convenience, operational efficiency, and data-driven decision-making. Although we always have to cognizant of who are customer base is and not try to “force” technologies down their throat.
No doubt, many laundromat owners can tap into new revenue streams by offering additional services such as wash-dry-fold, pickup and delivery, and even retail items like laundry detergent and snacks. Moreover, laundromats can evolve into community hubs by providing amenities like comfortable seating, free Wi-Fi, and entertainment options. Of course, installing LaundryCares’ Family Read, Play & Learn Centers can go a long way toward making laundries invaluable members of their communities – attracting customers and fostering a sense of belonging.
Looking toward 2025, a mix of challenges and opportunities lies ahead. Key industry developments, including potential mass deportations, rising operational costs, and the return of pivotal events like The Clean Show, are set to shape the business landscape.
Proposed mass deportations could have profound effects on laundromats, particularly those serving predominantly Hispanic neighborhoods. If these mass deportations proceed, laundromats in Hispanic communities could see significant drops in foot traffic. Many laundromats rely heavily on repeat customers, and a reduced local population could directly impact revenue.
The workforce behind laundromats often includes immigrants working as attendants, cleaners, and maintenance staff. Deportations could reduce the available labor pool, increasing competition for workers and driving up wag-es. For smaller laundromats operating on tight margins, this could pose a serious challenge.
Also, utility rates, particularly for water and electricity, are expected to climb in 2025, putting additional pressure on laundromats, which are highly energy-dependent businesses.
What’s more, proposed tariffs on imported goods could drive up the cost of foreign-manufactured equipment. Even domestically produced machines may see price hikes due to increased raw material costs. These factors could make it more expensive for laundromat owners to upgrade or replace equipment.
And the ongoing discussion around microfibers in wastewater could lead to new environmental regulations, requiring laundromat owners to invest in costly upgrades like filtration systems. While no laws have been passed yet, the issue remains on the radar, and owners need to prepare for potential compliance requirements.
Some good news: after a three-year hiatus, the highly anticipated Clean Show is back. As the largest industry event, it offers laundromat owners a chance to explore the latest technologies, learn best practices, and network with peers and vendors. This event is particularly valuable in light of the rapid changes and challenges faced by the industry in recent years.
Furthermore, the LaundryCares Foundation continues to make a meaningful difference in communities, recently earning the prestigious Library of Congress Literacy Award. By offering literacy resources in laundromats, the foundation exemplifies how the industry can contribute to societal good while fostering deeper community ties.
Looking ahead, the laundromat industry is no stranger to challenges, and 2025 will likely test operators’ resilience and adaptability. While rising costs, labor shortages, and potential deportations create significant headwinds, opportunities like the Clean Show and community-focused initiatives provide avenues for growth and innovation.
By staying informed, investing in technology, and engaging with community-driven efforts, laundromat owners can navigate the complexities of 2025 while ensuring their businesses remain resilient and relevant.
Alex Harris
Professional Laundry Systems
Commack, N.Y.
The laundromat industry stands at a crossroads as 2025 approaches, shaped by significant events and trends from 2024. A surge in migration has notably impacted laundromats, boosting revenue through increased machine usage. While this growth is promising, it has strained the infrastructure of many lo-cations. Owners should carefully evaluate the stability of this demographic shift before investing in major equipment upgrades, basing decisions on historical patterns for their stores.
Economic challenges also loom large. Rising interest rates, rent hikes, and in-creased wages have pressured margins. Although interest rates show signs of easing in 2025, owners must adjust vend pricing to counteract higher costs. Without these adjustments, bottom lines will suffer.
On the upside, the evolving laundromat business model offers exciting opportunities. Larger stores with added services – such as wash-dry-fold and pickup and delivery – are becoming the norm. Technology plays a central role in this transformation, with new point-of-sale systems streamlining operations and enhancing customer experiences. Chains and owner-branded stores also are on the rise, reflecting a shift toward professionalized operations and scalable growth.
However, 2025 also brings potential pain points. Finding and retaining qualified employees with a career-minded approach remains a significant challenge. Rising utility costs further complicate operations, making it essential for owners to explore energy-saving equipment and alternative utility sources.
Looking ahead, industry insiders are excited for the Clean Show’s return to Florida in 2025. This premier event will showcase the latest in high-efficiency technology, cutting-edge equipment, and valuable educational seminars. It’s a golden opportunity for laundromat owners to stay ahead of industry trends and drive continued success.
As 2025 unfolds, laundromat owners who adapt to shifting demographics, economic pressures, and technological advancements will be well-positioned to thrive in an evolving marketplace.
Ted Ristaino, Immediate Past Chair, CLA Board of Directors
Brendan Ristaino, Eastern Funding, New York City
As we step into 2025, the laundromat industry is poised for continued growth, spurred by advancements in technology, evolving services, and a strong foundation built in recent years. However, the year also brings challenges that require careful navigation to ensure profitability and sustainability.
Wash-dry-fold services have cemented themselves as a cornerstone of modern laundromats, offering a critical revenue stream beyond traditional self-service laundry. With the aid of robust management software, more store owners are embracing this segment as a growth opportunity. By diversifying their offerings, operators can reduce reliance on vended laundry and attract a broader customer base, ensuring stability in a competitive market.
2025 will see laundromats entering a new era of technology, with manufacturers rolling out touchscreen machines and advanced store management systems. These innovations offer owners unparalleled flexibility, from customizing customer options to gaining detailed insights into usage patterns. The data provided by these systems allows owners to optimize operations, making in-formed decisions about marketing, pricing, and customer engagement.
Technology’s influence also extends to the marketplace, where stores are now selling at higher multiples. Laundromats that integrate cutting-edge technology and well-rounded service offerings are commanding valuations of four to six times EBITDA or more, highlighting the growing appeal of the industry to investors.
Inflation and rising costs remain significant headwinds for 2025. The cost of equipment, construction, and renovations has reached historic highs, while interest rates, though slightly reduced, remain elevated. These factors will in-crease the cost of building new stores and renovating older locations, stretching return on investment timelines.
Additionally, environmental concerns, such as microfibers in wastewater, are gaining attention. While no legislation has been enacted yet, laundromat owners must remain vigilant about potential regulatory changes that could impose costly compliance requirements.
The expanding role of technology offers ambitious laundromat owners a chance to streamline operations, improve customer experiences, and pursue growth through acquisitions. Those who fail to adopt new tools risk falling behind competitors who embrace these advancements. Moreover, as the industry continues to modernize, opportunities for consolidation and scaling are becoming more accessible.
While the industry is growing, key challenges persist. Rising utility and labor costs remain pressing concerns, as does the difficulty in finding qualified lo-cations for expansion. Another critical issue is the shortage of skilled technicians to maintain advanced equipment. Supporting local trade schools and in-vesting in workforce development should be integral to every owner’s strategy in 2025.
Despite these challenges, the laundromat industry is well-positioned for success in 2025. Low unemployment rates, proactive price adjustments, and widespread modernization have created a strong foundation. Coupled with the steady rise of WDF services and innovative technologies, laundromats are poised to deliver both financial growth and enhanced customer experiences in the coming year. With the right mix of vigilance, innovation, and strategic planning, laundromat owners can turn 2025 into a banner year for their businesses.
Ryan Spicer
Laundry Depot
Orangeburg, N.Y.
As we turn the page to 2025, laundromat owners face several key developments from 2024. These changes present both exciting opportunities and daunting challenges, leaving store owners to strategize carefully to adapt and thrive.
One of the most significant trends of 2024 was the response to the ongoing housing shortage. Developers nationwide ramped up construction of apartment complexes, particularly in urban and suburban areas. For laundromat owners, this is a double-edged sword. On one hand, more multi-family housing translates to a larger customer base, particularly in areas where in-unit laundry facilities remain sparse. Additionally, rising migration to the United States has bolstered local markets and contributed to economic growth, creating a fertile environment for laundromat operators to expand their services.
Consumer preferences for convenience have driven a surge in wash-dry-fold services, creating new revenue streams for laundromats in 2025. These services not only attract busy individuals and families but also present opportunities for commercial contracts, such as partnerships with local businesses or short-term rental hosts. For laundromats looking to stay competitive, investing in this area – through staff training, efficient workflows, and marketing – could be a game-changer.
While the prospects are promising, laundromat owners must also contend with significant challenges.
Landlords are increasingly capitalizing on strong demand, raising rents and making lease negotiations tougher. For laundromats in prime locations, this could mean higher operating costs and slimmer profit margins.
Also, inflation remains a pressing issue, driving up the costs associated with opening new stores or retrofitting existing ones. These financial barriers could deter new entrants and make it harder for established businesses to expand or modernize.
Despite these challenges, laundromat owners have much to look forward to in 2025. Beyond wash-dry-fold services, fostering community engagement can be a powerful differentiator. From offering free laundry days for underserved families to hosting community events, laundromats can position themselves as essential neighborhood hubs.
Additionally, the industry is seeing growing interest in sustainability and energy efficiency. Owners who invest in eco-friendly machines and practices may attract environmentally conscious customers while reducing long-term operational costs.
As the industry navigates 2025, adaptability and forward-thinking strategies will be essential for success. The combination of shifting demographics, consumer preferences, and economic pressures will shape the way laundromats operate and grow. However, by embracing innovation, focusing on community, and planning for economic headwinds, laundromat owners can look for-ward to a year filled with potential and progress.
Mark Vlaskamp
2ULaundry
Austin, Texas
The laundromat industry in 2025 is poised for growth, but it’s not without its challenges. With increasing customer demand and shifts in how laundry services are delivered, store owners must adapt to stay competitive.
Delivery laundry services are a major opportunity for laundromat owners. Whether handled in-house or through third-party logistics providers, the demand for convenient, on-demand laundry solutions continues to rise. Google Trends data shows a steady increase in searches for terms like “laundry delivery” and “laundry service,” reflecting strong consumer interest. This organic growth indicates that the market isn’t just shifting supply – it’s expanding to meet new demand. For laundromat owners, now is the time to invest in delivery services, leveraging technology to streamline operations and capture a growing segment of customers seeking convenience.
While delivery services are a boon, the rise of peer-to-peer laundry services represents a significant headwind. These gig-economy platforms connect customers directly with independent contractors, bypassing traditional laundromats. Though these models have existed for years, their growing market share poses a real threat. The complacency of some laundromat owners mirrors how taxi drivers underestimated Uber – a mistake the industry can’t afford to repeat. Proactive owners should monitor P2P trends and consider how to differentiate their services, emphasizing reliability, quality, and a superior customer experience to remain competitive.
Amid these shifts, one event stands out on the 2025 calendar: the Clean Show. As the premier trade show for the laundry and textile care industry, it offers a chance to explore the latest technology, network with peers, and gain insights into industry trends. For many in the industry, it’s a highlight of the year and an invaluable resource for staying ahead.
In 2025, laundromat owners face a dual challenge: seizing the opportunity in delivery services while guarding against the disruption of P2P models. Success will require adaptability, an openness to innovation, and a commitment to providing unmatched value to customers. By staying informed and proactive, laundromat operators can position themselves for sustained growth in a rapidly evolving marketplace.
Yvette Morton Williams
Wash & Spin Coin Laundry
Atlanta
The laundromat industry faces a dynamic landscape in 2025, with new challenges and opportunities shaping the future. One major issue stemming from 2024 is the ongoing push by municipalities to reduce microfibers in the environment. Proposed regulations could require laundromat owners to install filters on washers, driving up costs for equipment and maintenance. The industry must collaborate to educate lawmakers about these challenges, advocating for practical and sustainable solutions.
Broad economic trends also loom large. Rising costs, a tight labor market, and increased automation are likely to impact laundromat operations. Equipment and parts prices may climb further, while higher wage expectations could pressure profit margins. However, consumer preferences for on-demand services and convenience present opportunities, especially in areas like professional wash-dry-fold services. Operators embracing technology to streamline payments and store management will be well-positioned to meet these demands.
Data security is another growing concern, as the adoption of digital payment systems expands. With more personal data being processed, laundromat owners must implement robust controls to safeguard customer information and comply with increasing regulatory oversight.
On the opportunity side, the continued sophistication of the industry offers a path for forward-thinking operators to thrive. The adoption of emergent technologies, including artificial intelligence, is transforming operations and customer experiences. This technological evolution makes 2025 an exciting time for those ready to innovate and invest in their businesses.
Despite these advancements, the rising interest in laundromats from individual investors and private equity firms could drive up acquisition costs, creating additional hurdles for new and existing owners.
Overall, 2025 presents a landscape of growth and complexity for laundromat operators. Those who embrace change, invest in technology, and advocate for the industry’s future will be best positioned to succeed.
