‘People are getting trapped’: Influencers tout laundromats as an easy way to make big money, but the reality is anything but

Sam BourgiThu, November 5, 2026 at 12:00 PM UTC

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Social media influencers have made owning a laundromat look like an easy way to make money, with videos showing buckets of quarters and stacks of cash rolling in. But some aspiring entrepreneurs who bought into the hype are finding out the hard way that these businesses are costly to maintain, and the income is anything but passive.

In a new report, The Wall Street Journal examined the growing popularity of laundromat ownership on social media, where videos of owners collecting cash have attracted millions of views. What gets far less attention are the expenses and day-to-day headaches that come with running one.

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According to Brian Wallace, CEO of the Coin Laundry Association, buying a small laundromat costs around $300,000, while larger, more successful operations can sell for as much as $3 million.

Roughly 30,000 laundromats operate nationwide, with an average profit margin of 24%, Wallace said. But results can vary widely, and new owners may face repair bills and other unexpected expenses.

Carlos Ochoa, whose Laundromat Money TikTok account has two-million followers, helped popularize the trend by filming himself collecting $1,419 in gross revenue over a five-day period. Ironically, he’s now warning that aspiring owners are getting swept up in the hype he helped create, without properly researching the business.

“People are getting trapped into looking at all these videos that glamorize the industry and they forgo any other due diligence,” Ochoa told the Journal.

His warning highlights why social media viewers shouldn’t conflate revenue and profit, and that owners still have to pay for utilities, maintenance, rent and other operating expenses.

For Sam Cohen, who purchased a laundromat in Old Bridge, New Jersey, unexpected repair bills have kept his business from breaking even. Other owners have faced problems unrelated to washing clothes, including drug dealers occupying bathrooms and customers damaging equipment.

The hidden costs of owning a laundromat: time and experience

What often gets lost in the social media hype is that laundromats are established businesses that require time and hands-on management. According to IBISWorld, the U.S. laundromat industry generates more than $7 billion in annual revenue, and many owners operate multiple locations.

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A survey by American Coin-Op, a trade publication covering the self-service laundry industry, found that nearly half of respondents operated more than one store. Twenty-seven percent owned two or three locations, while another 22% owned four or more. These are hardly the hallmarks of a hands-off, passive investment.

Furthermore, ownership is often a full-time commitment. Nearly two-thirds of respondents (63.5%) described their involvement as full-time, compared with 36.5% who said they worked part-time.

The same American Coin-Op survey also found that 65% of respondents identified high utility costs as a major challenge, while 44.4% cited the cost of new equipment and 39.6% pointed to high labor costs. Competition is another concern cited by 17.5% of respondents.

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How to avoid a money-losing laundromat

Laundromats are often touted for their high five-year survival rates, which is an important barometer for small business success. But a strong industry track record doesn’t guarantee that an individual investment will pay off. Prospective owners still need to do their research.

The Coin Laundry Association recommends reviewing financial statements, tax returns and utility bills before investing in an existing location. Buying an existing laundromat is a common route into the industry. In one association survey, 26% of respondents planned to purchase an existing location in 2026, compared with 13% who intended to sell one.

Buyers should also pay close attention to the age and condition of the machines. According to the association, commercial front-loading washers and dryers generally have a useful life of 10 to 15 years. Older machines could leave new owners facing expensive replacements shortly after taking over.

Beyond the equipment, the lease and location can significantly affect the operation’s success. Lease length, scheduled rent increases and other occupancy costs can all affect a laundromat’s value. So can neighborhood demographics, parking availability, visibility and competition.

Existing operators and other industry experts generally “caution against plans that call for overly aggressive spending,” the Coin Laundry Association wrote in its business checklist. “This could be over-paying for contractors and real estate during a new construction project, for example, or paying too much for a lease on an existing business.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Source: “AOL Money”