Startup Cost of a Laundromat in 2023?
Wondering what is the startup cost of a laundromat in 2023? To build a new laundromat in a vacant space in the Mid-Atlantic region in 2023, you are looking at roughly $300.00 per square foot.
The cost of laundromat equipment and the variation of options available, of course, can modify the startup cost slightly one way or the other.
Keep in mind that exterior utility impact fees may increase these costs, depending on the specific town, county, or utility company.
Existing Laundromat Cost
To purchase an existing laundromat is a significantly lower startup cost, but that cost varies based on the valuation of that laundromat based on the business’s EBITDA (Earnings Before Taxes, Depreciation and Amortization), equipment age, the strength of the lease, location desirability, etc…
Purchasing an existing laundromat location can have its benefits. Such as providing you with the majority of infrastructure in place. Important things such as utility impact fees grandfathered into the business, and some level of customers.
By the same token, if the business was mismanaged or poorly run, the customer base may be declining. This could require extra effort on your part in order to regain customer confidence.
If the location requires a full retool with new equipment, it’s safe to estimate roughly $130 to $150 per sq. ft. This is for equipment, installation, freight, and possible ancillary items. The renovation/ build-out budget of course varies by each location’s requirements. These numbers, however, will give you an estimate to start with.