How to open a self-service laundry business ("Laundromats") in Canada?

To buy an established laundromat with a steady income, you should ask the owner about their actual revenue. Because they have a lot of cash, they won't disclose the full amount or may inflate it to sell the business at a higher price. The equipment in the shop will likely be used and require a lot of maintenance, or they may need to replace it with expensive new equipment.

Setting up a new shop yourself involves a few things to keep in mind:

• Location is always important. You should look for a densely populated area, preferably near residential or rental properties, because if the buildings are full, people need to do their laundry immediately and can't wait. It should be near residential areas, but not in an overly wealthy neighborhood. No one will rent to wealthy people in upscale areas. So, choose low- and middle-income areas where people do a lot of laundry.
• You should look for a space with a monthly rent of $5000 or less. This type of business is very profitable in smaller towns and provinces. That's why I wanted to write this for many families who have recently immigrated, not just in Toronto, but throughout Canada.
• The electrical supply needs to be high enough for the dryers to operate. Household electricity is typically 200 watts, but a laundromat needs to be 400 watts. This is technical information that construction workers will know when building a laundromat. Therefore, I'll only briefly mention it in this article.
• The initial investment for opening a laundromat isn't very high.
• Additionally, cameras should be installed if there are no staff present.
• The shops that are being acquired range from small ones costing 70-80 thousand to larger ones costing 150-250 thousand, and those with multiple washing machines tend to have higher incomes.
• Canada rarely experiences power outages, so you don't have to worry about your washer-dryer going out during a power interruption.
• Building a new laundromat isn't difficult because the two main issues are drainage (plumping for flushing out dirty water) and the electrical system. A restroom for customers is also needed.
• A completely new house would cost around $60-70 thousand, plus a washing machine system worth another $100,000, and that would be a really cool and decent place.
• You'll need 6-8 small washing machines (those with larger space and more capital can invest in more), and at least 2-4 large machines to wash not only guests' clothes but also blankets, sheets, pillows, and mattresses, which require large machines to handle the load. The same goes for dryers.
• The price for a single wash cycle is now around $3-$3.50 for a small one (depending on the shop). A large one costs $4.25-$4.50, and so on, depending on the pre-set wash cycle. Drying costs 50 cents for 30 minutes, but it takes an hour to finish, so the total cost multiplies. That's why people often scoff and say it's just pocket change. But the number of machines in operation reflects the number of laundry workers employed.

Below is the income of a shop whose figures I obtained from a friend who works there. They bought my husband's laundromat many years ago, and it's still doing very well in Dundas St West.
This shop is small, 1200 sq ft.
Winter:

• Unsold days: $600-$700 per day
• Weekend: $1000 a day.

Summer:

• It's busy every day: $1000-$1500 a day.

So, on average, they earn between $25,000 and $30,000 a month. He bought the building outright, so he keeps all the money. Before that, they paid $4,000 in rent. His wife manages the business while he works, so he pays her $3,000 in wages (calculated as one worker).

Utilities (electricity, water, taxes) amount to $3000. He still has $10,000 left over a month. Sometimes his wife doesn't even look after the business. All the instructions for beginners doing their own laundry are on the shop owner's phone number; they'll call if there are any problems. Otherwise, just follow the instructions on the wall. Some summer months, the income is higher, around $15,000 to $16,000 a month. Supplies don't cost much, just electricity and water, and I only have to clean the floor to keep the shop tidy.

Income is around 60-120 thousand a year. It's very stress-free.

Then there were the simple coin-operated laundromats, which also had a coin exchange machine, so customers could easily exchange their own coins. We supplied the coins in the machine for them to use.

So, what we've read so far is about the traditional laundry business model, where no additional activities are done within the rented space.

But some of my friends are more creative and want to use one area to generate 2-3 sources of income.

Besides having the washing machines operate automatically, you and your friends should also add vending machines for drinks, chips, and coffee so that customers waiting for their laundry can buy food and drinks.

I added a vending machine for soap and fabric softener. Every time a coin goes in, a small bag of soap and fabric softener comes out for customers to use. This is quite profitable because I sell it at double the purchase price. I buy it for 65 cents and sell it for $1.20, and so on, especially with young men who never carry those huge containers and are often forgetful.

Selling chips and snacks is great. Plus, offering free Wi-Fi for customers to browse the internet while waiting attracts even more customers. That's why they put up a "Free Wi-Fi" sign in front of the laundromat, haha ​​😂. Competing with other shops by adding vending machines will definitely boost sales.

Another option is to hire a caretaker.

If you hire someone to look after the shop or have your wife manage it while you go to work, you can sell all sorts of extra things. Vietnamese people often have a small stall selling odds and ends, or offering dry cleaning and clothing repair services.

This is very profitable for those with skills, but even those without can make money because you don't have to do it yourself. You receive the clothes, drive them to a specialized laundry center. For example, if you take a dress to a laundry center where they buy it in bulk at a wholesale price of $7, you charge the customer $15. You collect many items at once. There are all kinds of clothes at all price ranges.

Or, if you don't want to do it yourself, you could rent out a space in the shop to a professional clothing repairman so they can fix the washing machine and the customer's laundry. You could then lease that room or shared space for $00-$1000 a month, which is also an option.
Many laundromats now use very advanced methods, allowing you to top up your laundry with electronic cards. This is a form of pre-payment; nobody actually tops up a $3 card. They top up $0.20, $0.40, or $50, and you receive the money upfront, similar to a member system for laundromats. Then, after washing the laundry, the money is deducted gradually, meaning you receive the money in advance.

It's not just one customer who tops up their card. Hundreds, even thousands of customers top up their cards before washing their clothes. And nobody washes all the money in their card at once. This method collects a lot of money upfront. Think about it carefully and you'll understand this kind of upfront payment. Above, I mentioned that only coin-operated machines exist. But many owners with money invest in electronic machines, which are very profitable.

To be honest, I'm also thinking about reopening the laundromat because I'm so tired of all the lockdowns. The laundromat isn't going to close down. And the costs aren't too high.

The maintenance company comes for regular repairs and provides proper invoices. Many businesses like nail salons, restaurants, cafes, and bakeries are constantly being advertised for sale because these types of businesses rely heavily on their workforce.

That's why you don't see many laundromats selling them. The owners make a profit, so why would they sell them?
The more immigrants there are, the more business the laundromats are doing. I'm also looking for a location to reopen my laundromat. I even tried to buy the one my husband sold, but the owner refused, and I found out he bought the whole corner shop already 🤣. So I had to write this post.

So don't forget that if you own a laundromat and your wife works there, or if both of you work and you hire one employee, you won't be making any money.

Some laundromats invest 300-400 thousand dong and earn tens of thousands of dong a month because they have many machines. One machine is equivalent to one month's salary, you know.

And here's a company specializing in setting up MayTag commercial washing machine systems – the most durable and reliable – with minimal breakdowns. They also provide maintenance. I'm sharing this so that anyone interested in opening a shop or setting up a business can contact them. They operate in the Ontario area.

https://www.harcoco.com

This company owns many well-known laundromats, both large and small. It has a long-standing reputation spanning decades.
If anyone manages to open a coffee shop, remember to invite Trang for coffee! Trang will share everything she knows 😚
Thank you everyone for always enjoying my posts. If you have any further questions, please leave a comment.

Below are some examples of lucrative laundromats that have been featured in the news, run by both Chinese and Westerners for many years. Please read the following for reference:

https://www.blogto.com/toronto/the_best_laundromats_in_toronto

Our compatriots abroad are growing in number. I hope everyone can become their own small business owner. Let's help each other get rich, everyone! Get rich with our own hands, determination, and minds.

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