Coin-Operated Laundries and Dry Cleaners
Industry: Coin-Operated Laundries and Dry Cleaners
Naics: 812310
Private Company Multiples
Industry Overview
Laundromats are a classic example of "unsexy businesses". They're not flashy, but they're resilient.
Think about it: When money gets tight, people don't stop washing clothes. They just look for cheaper options. That's why, despite rising utility costs, laundromats have seen a 0.5% CAGR over the past five years. It's not rocket growth, but it's growth.
The Fed's interest rate hikes in 2022-2023 squeezed disposable incomes, driving more people to laundromats. Sure, there's a projected 1.5% dip in 2023, but don't let that fool you. The industry is still looking at $6.6 billion in total revenue, with profit margins hitting a healthy 22.2%.
Here's the key: renters. As economic uncertainty pushes more people to rent rather than buy, laundromats win. But location is everything in this game. There's little wiggle room on service or price, so you need to be where the people are. High-traffic urban areas with low competition? That's your sweet spot.
Looking ahead, we're not talking about exponential growth. As the economy improves and disposable incomes rise, some customers might drift towards fancier options like wash-and-fold services. But the industry isn't going anywhere. We're projecting a 0.2% CAGR over the next five years, reaching $6.7 billion by 2028.
For buyers and sellers in this space, understand this: you're dealing with a stable, cash-flow positive business in a recession-resistant industry. It's not going to make headlines, but it might just make you rich.
Key Financial Metrics
Income Statement Benchmark
