Why your laundromat’s success may hinge on postcode, not just machines

Choosing where to open a coin laundry in Melbourne or regional Victoria isn’t just about spotting a vacant shopfront. It’s about human behaviour, foot traffic psychology, and – let’s be honest – avoiding the very expensive mistake of setting up shop in the wrong part of town.

Quick answer? You need high visibility, high convenience, and a local population that needs you. But let’s break that down properly.

Why does location matter so much for coin laundries?

Unlike cafes or boutiques, laundromats don’t rely on aspirational marketing. No one’s Instagramming their socks in a spin cycle. Instead, laundries succeed when they’re:

• Close to apartment-heavy areas with limited in-home laundry

• Near students, backpackers, or transient workers

• Conveniently positioned with ample parking

• Within walking distance for locals without cars

• Visibly accessible from major roads or intersections

A coin laundry doesn’t create demand – it captures existing need. So if you’re not visible where that need lives, you’re invisible.

What should you look for in Melbourne suburbs?

Let’s start with the obvious: inner-city and gentrifying areas with dense apartment living.

High-potential zones in Melbourne include:

• Footscray & West Footscray: Big migrant populations, lots of units, and a high percentage of renters.

• Brunswick & Coburg: Popular with students and young professionals. Think small spaces and shared housing – perfect customer base.

• Dandenong: A multicultural hub where laundromats are often part of the weekly routine.

• Sunshine: Suburban yet central enough, with a solid mix of low-income renters and new developments.

• Preston & Reservoir: Gentrifying fast, but many older buildings still lack internal laundries.

Avoid suburbs flooded with new townhouses or homes with dedicated laundries – even if the rent’s cheap. Convenience beats price.

Where should you open a coin laundry in regional Victoria?

Regional towns can be goldmines – or ghost towns – for laundry operators. The key is population density and infrastructure.

Top traits to look for in regional areas:

• A minimum of 8,000–10,000 residents

• Caravan parks, motels or workers’ camps nearby

• Public transport gaps (you’re now the local laundry)

• A shopping strip with food and parking

Examples that tick boxes:

• Wodonga: Fast-growing border town, plenty of renters and young families.

• Ballarat East: Dense housing, older demographics, plus solid student numbers from Federation Uni.

• Shepparton: Strong migrant and agricultural workforce population.

• Moe & Morwell (Latrobe Valley): Lower-income areas, older housing stock, and high laundry reliance.

Anyone who’s tried launching in a sleepy tourist town during off-season knows – don’t bank on seasonal booms unless you’re open all year and near accommodation.

How do demographics affect laundromat demand?

The magic formula? High density + low access to laundry + budget-conscious residents.

Top-performing demographics:

• Students – Shared houses, minimal space, no machines.

• Renters – Often no laundry or unreliable communal facilities.

• Migrant families – High-volume washers are a big draw.

• Tradies and FIFO workers – Dirty gear, big loads, no fuss.

On the flip side, if your potential customers are retirees with backyard laundries, you might be out of luck.

Use free tools like the ABS QuickStats or local council demographics dashboards to research your shortlist.

What kind of site is ideal for a laundromat?

Forget aesthetics. Think logistics and psychology.

Ideal physical traits:

• Street-facing shopfront – Visibility equals viability.

• Off-street parking – Especially in car-reliant suburbs.

• Proximity to foot traffic – Near cafes, takeaways, IGA, etc.

• Easy access for deliveries – You’ll thank yourself later.

If your site is buried in the back of an arcade or hard to find on Google Maps, even the fanciest fit-out won’t save you.

And yes, signage matters. The old-school painted glass window or LED “Open” sign still pulls people in.

What mistakes do new operators commonly make?

After years in the commercial fit-out space, I’ve seen some brutal lessons learned the hard way. Here are a few:

• Overestimating drive-in appeal: If people can’t see you, they won’t Google you.

• Leasing in brand-new developments: These often lack real foot traffic for 1–2 years.

• Assuming all laundries are recession-proof: Only true if the need exists.

• Ignoring the need for clear workflows: Especially when planning your coin laundry equipment layout and load management.

How can you test a suburb before committing?

Simple: act like a local for a week.

• Walk the main street at 8am, 1pm, 5pm. Count passers-by.

• Check existing laundries: Are they busy? Are there queues?

• Chat to local takeaway shop owners.

• Monitor Facebook community groups – are people asking about laundry options?

You’re not just testing footfall – you’re tapping into real-world behaviour.

FAQ: Coin Laundry Location Questions

Q: Can a coin laundry work in a small town of 5,000 people?
A: Possibly, but only if there are no competitors and high laundry demand (e.g., tourist traffic or worker accommodation).

Q: Do I need to be open 24/7?
A: Depends on area. In Melbourne, yes – it’s expected. In regional areas, 7am–10pm may suffice.

Q: Should I open near a shopping centre?
A: If rent allows and there’s outside-facing access, definitely. But don’t be buried inside the complex.

Choosing the right location for your coin laundry is equal parts data, gut feel, and understanding the behaviours of the people you’re serving. It’s not just where they live – it’s how they live.

For more insights on the back-end setup of your laundry — from workflow layout to machine mix — this coin laundry equipment breakdown covers what to consider behind the scenes.