How much does it cost to open a laundromat in Chicago?

Based on projects we’ve completed in the past 24 months, most projects fall into two ranges:

Leasing a space: $750,000 - $1,500,000
Purchasing a building: $1,500,000 - $4,000,000

Is owning a laundromat in Chicago profitable?

Yes, when it’s planned and operated correctly. Before a lease or purchase is finalized, we review local demographics to understand demand and determine the right equipment mix and capacity. In Chicago, the largest ongoing expenses are labor, utilities, and equipment financing payments. Long-term profitability depends on aligning the build-out and ongoing operations with the specific demand of the surrounding neighborhood.

Is owning a laundromat passive income?

No, especially in the beginning. Opening a laundromat requires taking on multiple roles, including operations, marketing, accounting, staffing, and customer service. During the first several years, laundromats require active, hands-on involvement to establish the systems that support scalability, multiple locations, and eventually a dedicated management team.

I only plan to own one laundromat. What should I expect?

If you do not plan to operate multiple locations, you should expect to spend ongoing time working in the store and on the business. Single-location laundromats require continued owner involvement to maintain standards, manage costs, and address day-to-day issues.

What makes a good laundromat location in Chicago?

Many factors matter, but two are non-negotiable: high-traffic visibility and ample parking. You can never have too many cars passing by your storefront or too many places for customers to park.
Once those fundamentals are in place, we look at renter density, household size, household income, and nearby competition. Outdated or poorly run competitors often represent an opportunity.

Should I buy an existing laundromat or build a new one?

Buying an existing laundromat can provide faster cash flow and lower upfront risk. Building new allows for modern layouts and utility upgrades, but requires more capital. The right choice depends on capital, experience, and risk tolerance.

How many washers and dryers does a laundromat need?

Equipment mix depends on square footage and anticipated customer demand. Today’s stores are built with larger-capacity washers to meet customer needs and increase revenue per turn. We also keep customer comfort top of mind. Our goal is to create a well balanced layout with the right mix of machines, ample seating, and enough open space so the store feels comfortable even during peak hours.

Can I finance a laundromat in Chicago?

Yes, we work with finance partners that specialize in the laundry industry, including Eastern Funding and Dexter Financial, and we’re familiar with SBA-backed structures. Lenders typically expect owner equity of at least 30% of the total project cost.

When should I involve Midwest Laundries in my project?

The earlier, the better. We provide early-stage consultation and site evaluation to help investors identify issues before a lease or purchase is finalized.