Laundromats are one of the few small businesses that run with almost no staff, take payment before the service is delivered, and keep trading through most economic weather. They are also capital-heavy and unforgiving of a badly chosen site or an under-sized gas supply. This guide sets out what is involved in setting up a laundromat in Australia, from the site and the utilities through to the equipment, the approvals and a realistic program. It is written by the team at Spencer Systems, who plan, supply, install and service laundromats around the country.
1. Start with the location, not the machines
A laundromat lives or dies on foot traffic and convenience. The customers who use one most are renters, apartment dwellers, students, shift workers and families with bulky items, so the best sites sit in or beside the places those people already go: suburban shopping strips, near supermarkets, close to unit blocks and student accommodation, and on routes people drive daily. Look for street visibility, easy parking (a customer with three baskets will not walk far), and trading hours the landlord will accept, because most laundromats open early and close late, and many run unattended overnight.
Size matters less than layout. A workable store is around 60 to 120 square metres; the shape needs a clear run for the machines along one or two walls, room for folding tables and seating, and a service corridor behind the machines for the plumbing, cable trays and dryer ducting. Before signing a lease, check what the landlord will allow for penetrations through walls and the roof for dryer exhaust, whether a gas supply exists or can be brought in, and what the make-good obligations are at the end of the term. A short lease on a heavily fitted-out store is a poor combination.
2. The utilities decide what you can install
This is the part most first-time operators underestimate, and the reason we look at a site before quoting equipment. Every machine has a demand for power, gas, water and drainage, and the store’s supply has to meet the total with everything running at once on a Saturday morning.
Electricity
Commercial washers and most dryers need three-phase power. Many retail tenancies only have single phase, and an upgrade involves the network provider, a new switchboard and sometimes a new supply from the street. Find out early what the site has, because a supply upgrade can take months and add substantial cost.
Gas
Gas dryers cost far less to run than electric dryers and dry faster, so most Australian laundromats run gas. The gas meter and supply pipe have to be sized for the total dryer load, which is usually well beyond what a shop’s existing domestic-sized meter can deliver. If gas is not available, electric dryers work but the power supply then has to be larger again.
Water and hot water
Washers need a supply that can fill several machines at once without the pressure collapsing, and hot water for the warm and hot cycles. Options include a dedicated commercial hot water unit or heat recovery from the dryers; the right choice depends on the machine mix and the cost of gas versus electricity at the site.
Drainage
A bank of washers dumps a large volume of water in a short burst. The store needs floor drains or a drain trough sized for that peak, a lint interceptor, and usually a trade waste agreement with the water authority. Undersized drainage is one of the most common causes of a laundromat flooding.
Dryer exhaust and make-up air
Every dryer needs a flue to outside, run in rigid ducting with lint traps that can be cleaned, and the room needs enough incoming air to replace what the dryers push out. Poor exhaust design is a fire risk, a performance problem and a frequent reason for council objections. Spencer Systems fabricates its own lint traps and cable tray systems and designs the duct runs as part of the layout.
3. Approvals and compliance
Requirements vary by state and council, but a new laundromat will typically need a development application or change-of-use approval from council, a plumbing and drainage approval, a trade waste agreement, gas and electrical compliance certificates for the installation, and sign-off on the dryer exhaust. Fit-out work may need a construction certificate. If the site was previously a laundromat much of this is simpler; if it was a clothing shop, allow time. Council approvals are often the longest single item on the program, so lodge early and run the equipment lead times in parallel.
4. Choosing the equipment mix
The mix of machine sizes is a commercial decision as much as a technical one. Small washers turn over quickly and suit everyday loads; large machines (30 kg and up) earn a premium for doonas, blankets and bulk loads and are often the thing that pulls customers past a competitor. A typical store runs a spread of sizes, and as a rule of thumb total dryer capacity should at least match total washer capacity so that clean washing never queues for a dryer. Stacked dryers double capacity on the same floor area, which is usually the binding constraint.
Other things that separate a good store from an average one:
- Extraction speed. Higher G-force washers spin more water out, so drying is shorter and cheaper. Suspended (soft-mount) machines reach higher speeds and do not need a heavy concrete plinth, which matters in upper-floor or lightweight tenancies.
- Controls and connectivity. Touch-screen controls the customer understands, and remote monitoring so you know a machine has stopped before a customer tells you. Fagor Connect monitoring is included at no charge on the Fagor machines we supply.
- Payment. Card and app payment is now expected; coin-only stores lose the customer who has no change. Most new stores run card plus a coin or note option.
- Dosing. Automatic detergent dosing gives a consistent wash, removes the mess of powder, and becomes a small revenue line.
- Reliability and service. A machine that is down is not earning. Choose equipment your supplier services with its own technicians and stocks parts for.
Spencer Systems supplies Fagor washer extractors and Fagor dryers under exclusive Australian distribution: washers from 10 kg to 35 kg and dryers to 45 kg for laundromat use.
5. What it costs
Every site is different, and the spread between a simple refit and a bare-shell fit-out is wide. Equipment is typically the largest single item, followed by the services and fit-out work (power, gas, plumbing, drainage and ducting), with approvals and design a smaller share. What the site already has is the biggest variable: a tenancy with three-phase power, gas and good drainage in place costs far less to open than one without.
Ask us for a site-specific budget before you commit to a lease.
6. Running costs and returns
Once open, the main running costs are rent, utilities (gas, electricity and water are commonly a quarter to a third of takings), consumables, insurance, cleaning and maintenance. Labour is low if the store is unattended, which is the model’s great advantage. Returns depend almost entirely on the location and the machine mix; a well-placed store with the right large-load machines and card payment can turn over several times what a poorly placed one does with the same equipment. Programmed maintenance is cheap insurance: a dryer that fails on a Saturday costs far more in lost takings than a service visit.
7. A realistic program
- Site shortlist and utility check (Spencer Systems can assess the sites with you)
- Floor plan, equipment schedule and budget
- Lease signed; council and trade waste applications lodged
- Equipment ordered (allow for shipping lead times on imported machines)
- Services and fit-out: power, gas, plumbing, drainage, ducting, plinths
- Equipment delivered, installed, connected and commissioned
- Payment system configured, staff or operator trained, compliance certificates issued
- Open, then a settling-in visit and the first programmed service
From a signed lease to opening, three to six months is common, with council approvals and equipment lead times the two items that stretch it.
8. How Spencer Systems helps
We plan, supply, install and service laundromats as one job. Our team assesses the site and utilities, produces the layout and equipment schedule, supplies the machines, and installs everything with our own installers and fabricators, including the custom cable tray systems and lint traps we make in-house. After opening, our mobile technicians provide programmed maintenance and breakdown repairs, and you can order detergents and consumables online at your own pricing. Read more on our laundromat equipment and services page, or call 1300 70 69 70 to talk through a site.