Laundromat Success Stories:
Learn from the Experience of Others in Your Industry!

The "New Age" of Laundromats:
How did "today's" modern laundromat evolve? Until the 1980's, laundromats were pretty much all the same: Rows of machines and folding tables in a (hopefully) clean and well-lit environment. Maybe a pop and candy machine in

addition to the change machine and the detergent vendor. But in 1983 a young man named Phil Akin was working his way through Iowa State University by repairing laundry machines, and envisioned a new kind of laundromat...one that his college student-customers actually WANTED to go to even if they still had days to go before running out of clean clothes. Phil managed to convince a bank in Ames Iowa to lend him $120,000 in order to open the first "Suds 'n' Duds", a combination laundromat and bar. There were pool tables, pinball, and video games to occupy his customers' time while the machines did the washing, plus a big TV, a bar serving beer, and modern music attuned to his young clients' taste. Business was so good he was able to take the concept to the next level and franchised dozens more across the country.

This shows us what a "laundromat" is today. Sure it's just a place to wash clothes, and your equipment needs to do that well at a fair price. But it's more than just laundry machines...it's a safe area for the kids to play, at least a couple of televisions so customers can occupy their time, and in bigger stores, a variety of food and entertainment options which make doing laundry more enjoyable. Throw in "wash-and-fold" services and any number of other customer amenities, and you have today's "Modern Laundromat: And if YOU don't do it in YOUR store, chances are your competitor WILL...leaving your business 'in the dust'.

Most of today's Modern Laundromat success stories revolve around cutting costs and "going green": Reducing energy consumption which helps your bottom line, helps the planet, and makes customers feel good about visiting YOUR laundromat instead of your competition's.

 

Otter Wash Laundromat, Seattle, Washington
The old, dim lamps at the Otter Wash Laundromat in Seattle, WA, flickered and emitted a sickly green color. Employees complained of eyestrain, the seamstress struggled to thread her needle, and workers strained to find stains in clothing. Fortunately, John Houde, the owner of the full-service fabric care facility, did some investigating and found a solution that not only improved employee productivity and morale but also increased profits.

His solution? Retrofit the lighting at the 3,500-sq.ft. facility. At first, Houde was skeptical. It would cost an estimated $2,000 to complete the retrofit. That’s a lot of money for most small business owners — especially when the investment will not directly produce revenue. He knew that the retrofit would cut his energy bills, but still, $2,000 isn’t pocket change.

However, as Houde continued his investigation, he discovered the Small Commercial Rebate (SCR) Program offer by Seattle City Light. An SCR representative explained how a lighting retrofit can be a great investment for a small business. The savings will quickly pay for the installation cost, and after that cost is recovered, go straight to the bottom line. Once Houde decided to proceed, the SCR representative also helped him find a local lighting contractor and a rebate that offset part of the installation cost.

Houde upgraded the 8-foot lamps and magnetic ballasts in the main laundry area and front lobby with highly efficient 4-foot T-8 lamps and electronic ballasts. He retrofitted 24 fixtures in all at a savings of approximately 6,240 kWh per year. That works out to a total savings of more than $500 a year. Houde spent nearly $2,000 on upgrading the lights, but he received a rebate for more than half of the installation cost. Thanks to the rebate, he’ll recover his investment in less than a year and a half. Even if Houde hadn’t received a rebate, he would still have recovered his costs in just 3.5 years.

Saving money is great, but the intangible benefits from the upgrade are equally impressive. Otter Wash offers dry cleaning, mending, and alterations in addition to self-serve laundry facilities. The new lights have improved lighting levels and color rendition, making it easier for employees to examine the clothes. Eyestrain is no longer a problem and it’s much easier to concentrate. These improvements have boosted morale and productivity, and also make the facility appear brighter, cleaner, and more upbeat. And that is good for business. As Houde said, “Everybody wins!”

BEACH SOLAR LAUNDROMAT:
The sole proprietor of Beach Solar Laundromat Alex Winch designed and implemented a major building retrofit to successfully reduce greenhouse gas emissions. To achieve the most energy efficiency possible, the 18 month building retrofit incorporated both big and small modifications.

Heating efficiency in the building was substantially improved through several key upgrades. To start, the roof and the windows of the Laundromat were all insulated. Consequently, the waste heat from the clothes dryers in the Laundromat is sufficient to heat the entire building when the outdoor temperature is -5 °C or warmer.

Traditionally laundromats require a large amount of energy to run the machines and heat the wash water. To overcome the need for fossil fuel based energy, Beach Solar installed eight solar panels on the roof of the building. The panels capture 20 000 kilowatt hours of heat annually. The heat captured from the panels is used to pre-heat water in a 200-gallon tank. This warmed water is fed to another 200-gallon water tank, which is maintained for clothes washing at 120 degrees Fahrenheit.

Beach Solar developed a very unique air conditioning system which uses cold water and air to provide cooling. Fans draw air across cold water circulating through coils mounted at ceiling height. This system captures heat from the ambient air to warm the water in the coils, resulting in cooler ambient air and pre-warmed water for the washers. This system reduces energy consumption while providing very efficient climate control.

Finally, a major lighting retrofit of single bulb T-8 fluorescents with electronic ballasts replaced dual bulb T-12 fluorescents with magnetic ballasts. Electronic and magnetic ballasts, devices which regulate electrical current, have different operating efficiencies. The T-8s with electronic ballasts use 35-40% less energy than the T-12s with magnetic ballasts, provide the same high quality light and last just as long.

Benefits

Environmental

Electricity consumption has remained the same at approximately 55 kWh per day with clientele up about 160%. This means that there has been a net reduction of electricity consumption of 38% per customer. Energy consumption for lighting alone has been reduced by 65%. The total carbon dioxide emissions saved from all activities at the Laundromat is 118 tonnes per year.

Economic

Revenues are also up 160 % while electricity costs and natural gas costs are down per load of laundry. The value of completely eliminating the old heating system is approximately $4500. The solar panel project cost $24 000 and captures approximately $1300 per year of energy. The fluorescent lights cost $1300 to purchase and they save $650 per year in electricity. Running the air conditioning system at maximum capacity reduces utility costs by $0.60 per day.

Social

Alex has provided space and a start-up loan to run a wash and fold business staffed by recent immigrants who get the opportunity to learn English by talking to the Laundromat self-serve customers. Alex is a recognized community leader and innovator. He is eager to share his business and environmental design knowledge with others, demonstrating that a relationship with the environment has diverse benefits.

EZ New Web Laundromat & Cafe:

“At EZ New Web Laundromat & Cafe, we have taken the concept and necessity of the Laundromat and blended it with the ease of a communications and socializing-friendly café to form a destination like no other in which to perform life’s tasks.” -Marion Illies/Founder

Scottsdale, Arizona-based EZ New Web Laundromat & Café’s goal is to create an atmosphere where customers can unload their cares while utilizing their services to “Sip, Soak, and Surf.”

Marion Illies has created a way of taking the drudgery out of laundry, making it a fun, relaxing, and social experience. Customers can choose to sip coffee and relax, surf the web to catch up with friends via email, soak their laundry or use the wash and fold and dry cleaning services.

EZ New Web Laundromat & Cafe is now offering the opportunity for others to share in this concept. The EZ New Web Laundromat & Cafe organization offers the opportunity to implement consistent and proven operational systems thus minimizing costly errors while generating optimal results in business development. EZ New Web Laundromat & Cafe has brought together industry professionals in site development, marketing concepts, and operational integrity, to support and maintain an organization with the single goal of seeing the franchisee succeed.

For the business owner, franchising has been proven to be the most successful method to build a small business with a 90% success rate. No matter what the economy is like, Laundromat owners will always have customers. People will always need to wash their clothes. By providing clean, convenient equipment, Laundromats can generate between $15,000 - $200,000 per year.