Why do so many people think a laundromat is a “set and forget” cash machine? Here’s the truth: launching one is less about tossing coins into a dryer, and more about spinning dozens of business decisions into a streamlined, profitable operation.

Let’s bust the myths and get real about the true costs — financial, mental, and operational — of opening a laundromat in Australia in 2025. Spoiler: the machines aren’t the only things that need to run smoothly.

How much does it cost to start a laundromat in Australia?

Quick answer: Expect to invest anywhere from $200,000 to $450,000, depending on location, size, and level of automation.

That range includes:

• Leasing and fit-out: $80K–$150K

• Commercial machines: $100K–$250K

• Council approvals and permits: $5K–$15K

• Initial utilities, signage, and insurance: $10K–$25K

• Marketing, POS systems, and incidentals: $5K–$20K

Here’s the kicker: automation and software now make up a growing slice of the pie. Smart payment systems and backend laundromat management tools aren’t just “nice to haves” — they’re deal-makers for time-poor operators and tech-savvy customers.

What’s driving up the cost of laundromats in 2025?

A few years ago, a basic coin laundry could squeak by with a good location and clean floors. Not anymore.

Here’s why costs are climbing:

• Smart tech is the new standard: Cashless payments, app-based door access, machine usage tracking — customers now expect it.

• Energy prices and sustainability: High-efficiency washers and solar integrations cost more upfront but reduce long-term bills.

• Landlord and council hurdles: Commercial zoning, grease traps, acoustic compliance — they’re not glamorous, but they’re compulsory.

• Rising insurance premiums: With theft, flooding, and liability risks rising, insurers are watching laundromats more closely.

As behavioural economist Dan Monheit would say — anchoring bias hits hard here. Many new operators mentally anchor their budget to a figure someone told them over coffee in 2018. Today’s reality is far more layered.

What hidden costs catch most new laundromat owners off guard?

Spoiler alert: it’s not the machines. Most owners get blindsided by operational creep — the tiny recurring costs that stack up faster than lint in a filter.

Watch out for:

• Staffing or cleaner costs, even for “unattended” setups

• Maintenance call-outs, especially for imported parts

• Software subscriptions — your laundromat management app, security feeds, and POS all add up

• Marketing fatigue — Google Ads, SEO, and flyers rarely run themselves

• Utility spikes — especially if you don’t monitor peak usage

And then there’s the ultimate silent killer: your own time. If you’re doing machine checks at 10pm and dealing with Facebook complaints before breakfast, you’ve built yourself a job, not a business.

Are self-service laundromats still profitable in 2025?

Yes — but not for everyone.

The game has changed. Volume alone no longer guarantees profit. Instead, the winners are:

• Automated: Operators using remote monitoring, smart apps, and predictive maintenance save serious labour costs.

• Location-smart: Areas with a mix of renters, students, or high-density housing outperform sleepy suburban corners.

• Brand-savvy: Modern laundromats feel more like cafes than utility rooms — think Wi-Fi, coffee, bright lighting, and good design.

According to IBISWorld, laundromats saw a resilience bump during the pandemic, but long-term profitability hinges on reinvesting in tech and customer experience.

As Cialdini’s social proof principle reminds us — people gravitate to what others endorse. So, a clean, busy, five-star-reviewed laundromat can pull double the revenue of a dingy, deserted one across the street.

What tools can make running a laundromat easier (and cheaper)?

This is where software becomes your best mate.

The average Australian laundromat owner isn’t just competing with nearby operators — they’re competing with how people feel about using their space.

Here’s where technology steps in:

• Cashless payment systems reduce theft and staff dependency

• Mobile booking and notifications improve customer experience

• Usage analytics help you plan upgrades, promos, and service intervals

• Remote alerts save hours chasing small faults

More operators are embracing a full-featured laundromat management app that ties together operations, marketing, and machine diagnostics. It’s not flashy — but it’s the closest thing to passive income this industry offers.

Is franchising a smarter move?

Maybe. Franchises can ease entry through bulk-buying discounts, proven systems, and branding support. But they also come with:

• High upfront franchise fees

• Less flexibility in design and location

• Ongoing royalties

If you’re cash-strong but time-poor, it’s worth exploring. Just make sure you’re not trading control for convenience. We’ve seen experienced small biz owners quietly walk away from franchise deals after realising they’d be locked into a system that didn’t evolve with tech or local demand.

Final thoughts: Is owning a laundromat worth it?

If you’re after a hands-free, set-and-forget business, laundromats in 2025 probably aren’t it.

But — if you’re willing to think like a behavioural strategist, automate the dull stuff, and see your customers as more than just foot traffic — there’s strong, steady income to be made. The best setups now resemble micro-hospitality venues with smart tech bolted on.

And as for the backend? Well, a smart laundromat management app might just be the quiet partner you need in your profit equation.

FAQ

Can I run a laundromat without being on-site every day?
Yes, with smart automation and remote monitoring tools, many owners run their sites with minimal in-person oversight.

What’s the biggest mistake first-time laundromat owners make?
Underestimating ongoing costs — especially utilities, software, and time spent on marketing.

How long does it take to break even?
Typically 2–4 years, depending on rent, machine efficiency, and customer volume. Higher automation often shortens this window.