Best Practices for Transforming Existing Laundromats for Greater Profit
Breathing new life into that old laundromat you just bought may present as many challenges as opportunities – at least in the beginning.
Navigating the journey of laundromat renovation requires a balance of practicality and innovation. As vended laundries evolve beyond their utilitarian origins, strategic planning becomes paramount. From rethinking space utilization and optimizing the layout to integrating cutting-edge technologies for enhanced efficiency, the process involves a blend of art and science. By exploring the most effective tactics employed by some of today’s industry experts, we’ll aim to guide and inspire those embarking on the path of renovating existing stores, providing insights that (we hope) will lead to successful, profitable transformations.
Let’s delve into the world of laundromat renovation, as five industry professionals reveal best practices that can convert outdated establishments into sleek, efficient, and customer-centric spaces:
Peter Mayberry
Anytime Laundry
Papillion, Neb.
YouTube: Peter Mayberry
Instagram, TikTok: @mayberrycapital
When I first acquire an existing laundromat, I usually start with the easy items like painting and repairing walls, and then I move to the more robust projects.
Of course, first and foremost, we try and get every piece of equipment in the building working. Although that’s not always possible, we will strive to have the least amount of out-of-order machines as quickly as possible. After that, we start working on areas to really improve the overall quality of the space. We look at tables, flooring, equipment layout, everything – and we begin to work up a plan to constantly improve and upgrade the laundromat.
If there is simply too much to do and the laundry is just too far gone, we’ll close the store completely, rip everything out, and put it back together exactly how we want it.
By contrast, if we’re making renovations that will take only a couple of days or a week, we try to perform those tasks when we know customer traffic will be the lowest. We also may do a renovation in sections or phases, if a project looks like it will go more than a few days.
As we work through our task list, items that generate revenue are deemed priorities and will take precedence over everything else. And, if we identify a space where we can immediately add revenue (in our case, we like to add skill games), we will plan to implement that in the early stages of the process. If not, I believe we’re throwing money away.
In my business, we don’t solicit customer feedback on renovation issues. We’ve developed our own standards, and we make sure we’re meeting them. (Along those same lines, if current employees from the former ownership don’t fall in line with our plan and our standard, we’re forced to let them go.)
For us, we will do whatever it takes to get our newly acquired laundry up and running to our standards. If it’s new machines, an HVAC system, roof repairs or anything else, we do it. For instance, if I know I’ll need an additional $200,000 to fix a laundry after I take it over, I make sure we’re ready to do what’s needed prior to that purchase. At this point, there aren’t many renovation/remodel issues that we don’t see coming.
Don’t overlook cost-saving measures or creative approaches to help maximize the impact of the renovation within your budget. For example, we’ve begun considering using LVT flooring in some laundries we’re acquiring, if we don’t plan to replace all of the equipment. However, when that equipment eventually needs to be replaced, we will tile the floor when we install those new machines.
Another tip is to eliminate as many keys as possible. Whenever I purchase a laundry, we get hundreds of keys. I quickly change out the locks on everything and get down to a manageable set of keys. My managers carry four keys that are masters, which will get them into everything they need to access. We’ll even swap out changer keys so that all of our changers are keyed the same way.
As far as essential systems like plumbing, electrical and ventilation, we will camera the drains for plumbing. I don’t worry too much about the electrical because we build our own bulkheads and replace most of the existing electrical. Additionally, we typically need to add dryer venting; I honestly don’t know how some of these previous owners got away with what they did.
Your approach to a store’s design and layout no doubt will depend on whether or not you like the existing layout. I have one laundromat where we filled in troughs and completely changed the entire layout, because I hated the original design. Then again, with some of the others, we’ve tried to work with what we have, while improving the overall flow of the store.
I usually visit a store several times over several weeks. I like to let my mind run away and begin a layout in my head – sometimes only to return to the site and realize some of those ideas won’t work. Then, I’ll walk the site again and start working on tweaking the layout. I have my own formula, and I usually can get it to work with some of the existing elements – sometimes, it just takes me a little time to work it all out.
Regarding aesthetics and customer-experience enhancements, we will do anything we can immediately, and then plan the rest out to minimize customer disruption. With that said, we add larger machines every time – not once have I not added more and larger equipment.
I always add the larger equipment immediately. I purchased one laundromat where the largest washer was a 40-pounder – and that store now has four 60-pound washers, six 80-pound machines and two 135-pounder. Keep in mind that a lot of these laundries are dying simply because of their small, cheap, inefficient machines.
Store renovation has a lot of moving parts, so managing timelines and workflow is essential. These days, I have a team that handles it. We meet weekly and proceed accordingly. Of course, the process used to be much easier prior to COVID and the long lead times for some materials, so built that into your schedule.
Also, if I know we’re going to have a massive amount of changes that will need to be inspected by the city or local municipality, I’ll hire a general contractor to oversee the project. However, if the number of changes aren’t ridiculous, we’ll try to tackle everything in-house.
Measuring Success: If a store is not cash-flow-positive six months after the completion of a renovation, I’m disappointed. If it’s not cash flowing after a year, my mind turns to selling that laundromat. In fact, I’ve sold two laundries made money, but not enough to justify the work that was being put into them.
If your new income is higher than your new debt service, I’m typically OK with that performance. In some cases, extremely rundown stores with bad reputations will take longer to come back to life – so factor that into your thinking.
Best Advice: Just pull the trigger. If you’re constantly bleeding customers, you may have waited too long. If that’s the case, change the name of the business, and do those renovations.
Andrew Cunningham
Andrew Cunningham Enterprises
Torrance, Calif.
When assessing the current state of a laundromat to be renovated, I believe it should be an all-in proposition. I wouldn’t recommend a partial renovation.
Of course, prioritizing those renovation tasks will depend on whether or not you are going with a full revamping – replacing the ceiling, the floors, the walls, making room for wash-dry-fold, etc. So, the real question is what are you remodeling this laundromat for – an upgrade or growth?
Before moving forward with a remodel, I’ll usually visit other laundromats in the same region, particularly the more modern and better looking ones to spark any ideas. I also may have the store’s attendants ask the customers for any thoughts or ideas they may have, and I’ll typically get solid feedback with this method.
When deciding on contractors, I like to get two or three bids. And I’m not only looking at the dollars, but at the time it will take and the wording (or lack thereof) in the contract. Additionally, I make certain to discuss any infrastructure or utilities improvements with my various contractors to ensure that I’m not going to be taxing the utilities or equipment, such as the water heaters and boilers.
Design and layout of the laundromat being renovated are key. I never install washers in the walls. Walls are for dryers and rooms only. Also, I’ll typically work within the confines of the current store layout, unless I’m expanding the facility.
In general, the walls of the store should have a similar theme running throughout, and the floors should be shiny as a new nickel.
All in all, most design decisions are based on equipment sizes and my immediate clients’ needs.
The common thought process today is to place the large machines in the front of the store. And I just don’t get it! Personally, I want to achieve the “IKEA effect” in my laundries – I want my customers to have to go through my laundromat to get to the big machines.
Also, I believe in installing convex mirrors in the corners of the laundromat so the parents can see where their kids are at all times. It gives them a sense of security and peace of mind to be able to know at all times what’s actually happening on the other side of those larger, taller washers.
When deciding which equipment upgrades to prioritize to improve efficiency and service quality, I watch for traffic jams. Also, I will increase the machine vend prices until customers eventually move from one machine to another. If that doesn’t solve the problem, I’ll look toward adding more of the higher-use machines.
At the same time, I calculate the wash poundage to the dry poundage, and I attempt to make sure that I have 10 percent more drying capacity than wash capacity.
To keep renovation projects on schedule, I’ll typically use free, basic, online time management software. Keep it simple.
However, I will always add a clause in the contract that states, if a project takes longer than X amount of time, that cost overrun will be coming out of the contractor’s pocket. Moreover, to minimize any disruption’s to the laundromat’s operations, I try to schedule the contractor to work during hours that the laundromat isn’t especially busy.
Measuring Success: The best way to evaluate the success of your project is cash flow. And remember that, when you replace mortgage dollars for repair dollars, you gain customer satisfaction and, therefore, make more money.
Best Advice: I don’t necessarily have specific advice, but here are some important questions to ask yourself:
Why are you considering a renovation? Is it because someone suggested that you should remodel? Have you looked at the competition? Do you know what your competitors are doing? Do you know exactly what your local market is? How many 30-, 40-, 60- and 80-pound machines are in the marketplace? Is there a gap? Have any other laundromats in the area remodeled recently? What did they do?
What is your ultimate goal? Do you want to make your newly acquired store more functional, more modern, more efficient, more attractive, or just simply “nicer?” Are you interested in changing your equipment mix? Are you looking to replace smaller machines with bigger ones, based on turns per day? Are you adding more machines of a certain size because your customers are demanding it? Are you increasing your drying capacity? What’s the purpose of the process?
Figure out your main goal for renovating your laundromat, and always keep that in mind as you move forward with your project.
Tamie Randolph
Bubbles Laundromat
Mt. Vernon, N.Y.
When we first bought our laundromat, I was new to the business, and we tried to understand what was needed. The store had not been taken care of, so we immediately did a revamp of the space, as well as changed the hours of operation to better fit the needs of the community.
The first big task was getting all of the equipment up and running. We also made sure the space was clean, added a fresh coat of paint, and got all of the lights working to make the store welcoming. Next, we purchased a television, and installed Wi-Fi.
However, the main priority was to make sure everything was up and running and to not have any machines down. This gave us the time to evaluate what was happening at the store – such as customers waiting on the larger machines, which then became our next priority.
We removed some of the smaller machines. Adding more large equipment helped with traffic flow and getting customers in and out. We also added a card system.
Basically, the first couple of months we just watched and spoke with the customers to see what they needed. The community is looking to see if the store is clean and if the machines are running. Customers want to know you care in order for them to give you their business.
We speak directly to our customers and ask what would make their visit more enjoyable and if there is anything they would like to see in the future.
To stay on budget, we try to tackle as many of the renovation items as possible ourselves. Of course, for projects like adding another water line to accommodate our new equipment, we sought out experienced technicians.
We wanted to design the store with all of the same type of machines. I didn’t want to mix-and-match when it came to the washers and dryers. Above all, the layout has to make sense for the size of the store.
We added a graffiti design to the walls, and that turned out to be a game-changer. Our customers noticed it immediately. People appreciate when they see you making changes and upgrades. They see that we’re really trying to be there for them. And all of the upgrades we’ve made has helped attract more customers.
You really need to be in tune with your community and your marketplace, to know what customers would like or want or find pleasing. That’s why we asked a lot of questions when we first acquired the laundry. What did they like and not like about the business? What would make the experience go smoother?
Measuring Success: I think you measure the success of the renovation by how the community receives the remodeled laundry. Obviously, the more efficient the machines, the more turns you should get.
Beyond that, we look at the number of repeat customers, as well as customers referring family and friends to our store. Those are positive affirmations that let you know you’re doing the right thing.
Positive word of mouth and customers traveling from a distance to frequent the store also are great barometers of success.
Best Advice: Don’t take on more than you can handle, and take it slow.
Michael Finkelstein
Associated Service Corp.
Danville, Va.
If you’ve bought and are renovating an existing laundromat, there are a number of elements to look at. You need to look at the age of the current equipment. Does the store need to be painted? How are the lights? Do you need to install energy-efficient bulbs? What’s the situation with the water heating system? And so on.
In the past year, I’ve purchased two stores and had to go through that process of deciding what I need to do to make those laundries better. Some of it involved equipment. Some of it was lighting. Certainly, there was painting.
For me, it’s all part of a multi-year remodel. I probably do it differently than many laundromat operators because I’m a multi-store owner. I’m looking at a laundry in its totality, but I’m also looking at each component of that business.
In my own business, I’m in a constant state of remodeling stores. It never stops. For example, I might plan to replace all of my floors – it will be a multi-year project, where I tackle one store a month and do just the flooring. I’m currently doing that with bollards that we’re installing – one store a month, doing it in chewable chunks.
Of course, when prioritizing what projects to undergo and when to do them, you need to have a budget. Figure out how much money it’s going to cost, as well as how much money you have to allocate to improve your new location.
Once you have a number, figure out what it is your laundromat needs – a ceiling, a roof, windows, doors, air conditioning, card readers, whatever. Now, you’ve got a legitimate game plan, but you first needed to create a budget to do so.
Prioritize the renovation based on your budget and on how much you can afford, as well as what the store needs most and where can you get your best bang for your buck.
Over the years, I’ve discovered a few cost-saving measures to help maximize my renovation budget.
For instance, I’ve found that in the northern parts of the country, air-conditioning companies don’t have a lot to do during the winter. So, if you plan to install an AC unit in your laundry in January, you may get a break in the price, because those installers and technicians are less busy than during the summer. Planning ahead and being flexible with your schedule can save you money.
Also, buying in quantity, if it makes sense for your business, is another great way to bring your renovation projects in under budget – whether you’re purchasing flooring tile, glass, you name it.
With regard to layout and design items, I like to position my larger washers upfront, if I can. For a variety of reasons, that may not be the current layout situation at the laundromat you just bought – but I would consider striving for that type of design. At the same time, I’ll place my larger 50-pound dryers near those big 60- and 80-pound washers.
Additionally, a well-lit store with wider aisles should be a given. Place your folding tables in close proximity to your dryers. These a just some very basic blocking and tackling design items.
Installing televisions and Wi-Fi will help to keep your customers entertained as they go about their laundry tasks. And, if you’ve got a larger store, incorporate as much seating and as many tables as you can – to give customers room to relax, eat, watch TV, or just hang out on their phones.
Depending on the positioning of your laundromat and the amount of windows, the sunlight shining in can really heat up the store and make it difficult to see during certain times of day. If so, perhaps consider tinting the windows – but only very slightly, do not make it too dark.
Another design tip to consider is waterproofing material on your walls. If you share common walls with neighbors in a strip mall setting, you’ll want to add some sort of waterproofing product to those walls – probably about two or three feet high. After all, if a hose breaks off, you don’t want to flood the neighboring businesses.
Measuring Success: Your customers will tell you whether or not your renovation has been successful – either through comments on social media, or by frequenting your store, which will show up in your sales volume.
Of course, you also can look at it from the expense side. If your utility bills are decreasing, those new light fixture and water heating system are doing their jobs.
That’s how I would measure a renovation over time.
Best Advice: Be patient. Don’t bite off more than you can chew. Rome wasn’t built in a day. If you’re in this business for the long haul, do the best you can, and make steady improvements over time. Your customers will notice.
Luke Williford
The Wash House
Raleigh, N.C.
www.thewillifordbrothers.com
First off, growing through acquisition has proven to be the most effective and efficient way to get into this business, or to grow your locations and brand.
Given that, some stores need a complete retool, while others require just some major elbow grease. Equipment replacement typically is the largest expense when renovating a laundromat, and it should be. We look at the age of the equipment, its condition, the models, and the capacities.
Capacity is probably the greatest indicator of the need for renovation. If you don’t have the equipment to handle the amount of laundry coming in, there’s no need to market for new customers.
Often, we can repair existing equipment, add a few larger washers and dryers, replace the floors, paint, re-brand, and incorporate a friendly staff – and improve the business swiftly. After all, the amount of care the owner has for the quality of the business can be felt directly by the customers and staff.
Although rare, some of our acquisitions have required no equipment replacement – we were able to grow revenue simply by adding our payment system, re-branding, extending the hours, eliminating theft, and replacing any rude employees with friendly staffers. Each location is unique.
Infrastructure is important, but the store does have to be beautiful, and it has to be functional. I’ve seen unnecessary money spent on replacing water lines, when the owner could have just replaced the shut-off valves. Then again, I’ve also seen laundromats so bad that everything needs replacing; however, that’s not typical. Remember, you can always improve as you go. Don’t spend any unnecessary dollars, especially in the early stages.
When prioritizing, I initially look at utilities capacity. Does the natural gas system have sufficient pressure of two-pounds-per-square-inch? Do we have at least a one-and-a-half- to two-inch water line? Do we have a clean, four-inch-or-larger PVC sewer line? (If the sewer line is cast iron, we jet and camera it, and replace only if necessary after viewing the camera footage.) Do we have a minimum of 400 amps of electrical service? (We’ll clean up any loose wires and properly label the panels.) Do we have one-and-a-half feet of makeup air per dryer?
If not, we address those first.
We independently duct all dryers straight to the outside. We try not to duct the dryers together, as this creates issues such as lint buildup, dryer inefficiency, a fire hazard, and moisture back-flowing into the other pockets.
We do the same for the washers. Each washer independently drains into a trough; they are not hard piped together. We have made this standard at all of our locations, and we implement it without question at all new locations. This provides an above-ground trap and eliminates the need for large, smelly traps you may find in the floor or the parking lot of your laundromat. We eliminate those as often as possible and add a clean out that goes both ways at the trap, and then fill it in with concrete or asphalt.
With equipment capacity, we need large washers and dryers to attract and retain the customers we prioritize. For example, our locations typically have a minimum of 1,000 pounds of wash capacity, split across 20 to 30 washers, and a minimum 1,200 pounds of dry capacity, spread across 20 to 30 dryer pockets. These are minimum and just a reference.
With the layout, we try to maintain the same or a similar design. When that’s impossible, we know our costs and the scope of the project will increase. Overall, we strive to provide a lot of room for our customers.
And, in fact, we regularly ask our store managers what the customers like and need. Our employees are there when the stores get extremely busy and can provide great feedback as to any bottlenecks or space constraints we need to resolve.
We use data from our other locations to gauge which equipment is most utilized. Believe it or not, all laundry customers are much the same – a large washer in California is preferred equally in North Carolina.
After all, Chick-fil-A doesn’t change its chicken offerings in different locations; they repeat what works. By the same token, we know that Mountain Dew and Coke are our two best-selling vended drinks – always at all locations.
Your market is not unique. Yes, competition may be different – as well as accents and culture – but laundry customers across the U.S. all love bright, big, clean, safe, and friendly laundromats. It’s not rocket science.
To stay on budget, we DIY everything from construction to equipment installation to creating our own payment system – not that I would recommend this method for most operators.
We general contract our projects and have used the same mechanical, electrical, and plumbing subcontractors for years. I receive drawings and then seek bids from each. From my experience, I’d recommend hiring smaller subcontractors, who are the ones actually doing the work, rather than bigger companies.
As a rule of thumb, the more you’re willing to do or at least be involved in, the less likely you are to overpay and have projects extend over long periods of time. Never forget that no one cares about you opening your laundromat on time and under budget like you do.
The most successful operators are involved in their businesses. Don’t be afraid to get your hands dirty and be on site during construction. This is not a passive income business. You must be a part of the business if you want to grow it effectively and efficiently.
When retooling existing laundromats, we close down for as short a period as possible, because laundry customers definitely are creatures of habit.
With regard to store design, we love space, so we strive to create as much of it as possible. We also try to incorporate restroom walls, dryer walls, and office walls around the perimeter of the facility to save space. Of course, it all depend on width and depth of the space.
In addition, we’re sticklers for consistency. We have the same flooring, restrooms, payment system, and even color on the walls at all locations. We’ve created a brand and strive to keep it as consistent as possible. We offer ample folding space (one folding table for every two dryer pockets), seating (one chair for every two dryer pockets), and laundry carts (one cart for every two dryer pockets).
Lastly with layout, we like the large washers up front. We want those big machines to hit customers in the face when they walk in the door. Also, we place our payment terminals at the front of the store in the wall with rear access only, for safety and customer convenience.
As far as workflow and managing timelines, I’m on site and in daily communication with my subcontractors and any operational managers who may be helping with the project.
Often, I have to play “peer mediator” or “friction resolver” between subcontractors. We make sure the electrician, the plumber, the mechanical folks, and the sheetrockers all work together.
For example, I recently had a sheetrock installer and a mechanical guy arguing over sharing a scissor lift. I made one call and had an additional scissor lift on site within the hour. The $500 for an extra scissor lift avoided confrontation, kept my subcontractors friendly, and kept everyone working.
Measuring Success: We look to be at four turns per day by the third month. Anything better is great – anything less, and we continue to market and engage with the community to create further awareness.
Best Advice: Acquiring a rundown, existing laundromat is the most effective way to grow. You eliminate a competitor, while often utilizing the existing infrastructure and sometimes even the original equipment.
Given that, we suggest you talk to customers, because they’ll tell you what they want. And then train your staff to kindly welcome and engage with those customers. Be present as much as possible, and welcome your customers. Remember, you are the culture creator in your business, and it’s much easier to create culture than to change it.
With your retool, work to create a collaborative, hard-working, and kind company culture. The first impression after you reopen is important, so make sure it’s a great first impression for your customers.
