Advice for New Laundromat Location Selection

During the early stages of opening a laundromat, many entrepreneurs face various challenges. They are confused about how to select a store location, increase store revenue, and achieve stable profitability, and how to prepare before opening while avoiding industry pitfalls.

Based on real customer cases, this article will introduce two core parts of opening a self-service laundry store: location selection and renovation ideas for those who intend to open a laundromat.

Location Selection

For a laundromat, its location directly determines customer traffic, profit potential, and even the business’s success. Correct location brings a steady stream of customers and a thriving business. Incorrect location causes a decline in customers and business profits in spite of premium equipment and service. Therefore, store location selection is a key step to opening a laundromat.

● Business district survey

A business district means the customer coverage area surrounding a store. Different industries have different customer coverage ranges. Given the operational characteristics, the area within a radius of 500 meters belongs to a primary business district. The area within a radius of 800 meters belongs to a secondary business district. All the research and planning should be based on the above ranges.

Residential areas can serve as the primary business districts, while office areas function as secondary customer sources. Rental costs in residential areas are affordable. The population density is large, and the residents are stable. Stable customer foot traffic is the core source for laundromats. Many young white-collar workers and foreign renters gather in the surrounding office areas. They do not own household washing machines and strong washing demands, which can further increase the overall order volume in stores.

● Customer research

Industry data shows that in modern laundromats, 50%-80% of customers come from the area within a radius of 500 meters of the stores. According to industry standards, if the store’s 500-meter service radius contains at least 5,000 permanent residents, it can support the normal operation of a store.

There are three types of core customers in laundromats: young white-collar workers, fresh graduates, and elderly residents. Laundromats should investigate the age structure, rush hours, and spending habits of the surrounding residents. 

Young white-collar workers are busy at work and have no spare time to wash clothes by hand. Most of them wash and care for clothes on weekends. Fresh graduates have a casual rhythm of life. They wash clothes weekly. Elderly residents have plenty of time. They are used to doing laundry in the daytime to avoid the evening peak hour. For pricing and operation, it is necessary to know the daily routines and consumption patterns of different groups.

● Site confirmation

In the same community and street, different store locations have different foot traffic and operational efficiency. Below are the preferred locations for laundromats.

- Street corner

The intersection of two streets has traffic advantages and high exposure. It can attract more walk-in customers.

- Fork road

Fork road has a wide field of view. It can be clearly seen in all directions. The store here can attract pedestrians through eye-catching store signage, storefront decorations, and equipment displays.

- Convenient transportation area

Laundromats serve the public. Easy transportation and the surrounding parking areas make them more convenient for residents to carry linen and clothes. Convenient transportation is the basic guarantee for the long-term operation of a store.

Store Renovation

Besides location selection, store renovation is important at the beginning of store setup. A clean, well-ventilated, and rational store layout significantly enhances customers’ experience and their repurchase rate. The overall decoration should be clean, moisture proof, and soundproof. It is necessary to properly plan the equipment location, drainage and ventilation system, and clear operation guidance signs.

Q&A

Q1: Which countries’ laundromats are using Kingstar’s self-service equipment?

A1: With over 20 years of production, Kingstar has customers all over the world. It has gained new customers in Germany, France, Thailand, Indonesia, Spain, Brazil, and America this year.

Q2: What heating methods does a Kingstar self-service dryer use?

A2: It supports electric, steam, and gas heating.

Q3: How to equip self-service washers and dryers?

A3: It is recommended to install two 15kg self-service washers per 100 households for daily laundry needs, including clothes and large items (bed sheets and duvet covers). But during weekend and holiday laundry peak periods, three washers per 100 households are needed.