"Drug Dealers Took Over the Restroom"... The Reality for U.S. Laundromat Owners

Popular on social media as a business promising "easy income"
Operators say "reality differs from online videos"
Equipment repairs, utilities, and customer management weigh on operators

Self-service laundromats are drawing attention as a new business opportunity in the United States. However, operators are reportedly struggling with unexpected problems, including equipment breakdowns and maintenance.

The Wall Street Journal (WSJ) reported on October 23 local time that people operating self-service laundromats in the United States had started their businesses after seeing only the success stories featured on social media, but were facing practical challenges.

In a survey of business owners published in September by American Coin-Op, a U.S. trade publication for the laundry industry, respondents cited customer and staff management, the time required to run the business, costs, and equipment repairs and maintenance as major burdens. Utilities, equipment repair and maintenance, and labor costs were each frequently mentioned as expenses that were higher than expected.

Self-service laundromats are attracting attention as a new business opportunity in the United States, but operators are reportedly facing practical challenges. Pixabay

The WSJ featured the case of Atusa Farsa, who operates a laundromat in Fullerton, California. Three years ago, Farsa saw videos on social media and bought an existing laundromat. Farsa had expected to earn a steady income with little work, the so-called "passive income," but running the business turned out to be different from what was expected. Farsa even had to seek police help to remove drug dealers who had taken over the laundromat's restroom. "The business isn't as simple as it looks online," Farsa said.

Equipment maintenance is also a burden. Sam Cohen, who operates a laundromat in Old Bridge, New Jersey, quit a job as a software developer to enter the laundromat business, but has yet to break even because of various repair costs. When a machine breaks down, repair costs are incurred, and revenue from that machine is lost at the same time.

Startup costs are also substantial. According to Brian Wallace, CEO of the Coin Laundry Association, acquiring a small laundromat costs about $300,000, while larger, more profitable locations can sell for as much as $3 million.

An estimated 30,000 self-service laundromats operate across the United States. The association puts the industry's average net profit margin at about 24%. This means that even for every $100 in revenue, only about $24 remains after operating expenses.

Some operators have added supplementary businesses because laundry services alone are not enough to cover costs. Francis Dayamba, who operates a laundromat in Chicago, installed a claw machine and electric vehicle chargers at the location to reduce labor costs. Some business owners offer laundry pickup and delivery or laundry services, while others generate online income by posting videos of their store operations.

Influencers who have promoted laundromat startups on social media are also cautioning against jumping into the business without careful consideration. Carlos Ochoa, who has 2 million followers on TikTok, warned, "If you go into business after watching only videos that emphasize profits, you risk investing without doing enough research beforehand."

This content was produced with the assistance of AI translation services.