How Much Are Laundromat Utilities?
Laundromat utilities run a median 20% of gross revenue, with a 21% mean, among 377 owner-operators reporting 2023 results to the Coin Laundry Association. On the surveyed median store's $335,000 of revenue that is roughly $67,000 a year. Utilities were also the most-cited operator problem, selected by 53% of respondents.
Key takeaways
- Median 20% of gross revenue, mean 21% (Source: CLA 2024 Laundry Industry Survey).
- Utilities were the number one operator problem at 53% of respondents, ahead of labor availability (42%) and labor cost (37%).
- Sewer is often the largest single line, because many utilities bill it as a multiple of metered water.
- Water and sewer are local, not statewide. Neighboring towns can differ dramatically; no state average substitutes for the actual rate schedule.
- A store above 25% has a cause worth identifying before purchase — and some causes are cheaply fixable.
The Short Answer
About 20% of revenue at the median. On a $335,000 store, roughly $67,000 a year across water, sewer, gas, and electricity.
What Makes Up the Bill
| Component | Typical role | What drives it |
|---|---|---|
| Water | Large | Cycles run, machine capacity and type, extraction efficiency, leaks |
| Sewer | Often the largest | Frequently billed as a multiple of metered water; local calculation rules |
| Gas | Large where dryers and water heating are gas | Dryer minutes sold, extraction efficiency, water heater efficiency, incoming water temperature |
| Electricity | Smaller unless dryers are electric | Motors, lighting, controls, HVAC; demand charges on commercial tariffs |
The ranking is not universal. A store with electric dryers in a high-rate state has a very different profile from a gas-dryer store in a low-rate one, which is why every underwriting starts from the actual bills.
Why Statewide Averages Do Not Work
Electricity does have a published state benchmark: the EIA's State Electricity Profiles report all-sector average retail prices, with a 12.94 cents/kWh U.S. figure for 2024 and wide state variation around it.
Water and sewer have no equivalent. They are set by the serving utility — sometimes a city, sometimes a district, sometimes a private operator — and two stores ten miles apart can face different rate structures, different sewer calculations, different meter charges, and different seasonal averaging rules.
What to pull for a specific address:
- the serving utility's current commercial rate schedule
- the meter-size charge and the volumetric rate blocks
- exactly how sewer is calculated, including any multiplier of metered water
- seasonal averaging, surcharges, and taxes
- backflow requirements and any connection or impact fees
- whether the meter and service line belong to the landlord or the tenant, and whether other premises share the service
Diagnosing a High Ratio
A store at 28% instead of 20% is telling you something. On $300,000 of revenue that gap is $24,000 a year, which is roughly $84,000 of value at a 3.5x multiple. Finding the cause is worth real money.
| Cause | How to test | Fixable? |
|---|---|---|
| Leak or running toilet | Read the meter with everything off | Yes, cheaply |
| Inefficient or oversized water heater | Model, age, recovery rate, cycling behavior | Yes, at capital cost |
| Top-loader-heavy machine mix | Count machines by type and capacity | At retool |
| Low extraction speed raising dryer time | Compare dryer minutes sold to washer cycles | At retool |
| Unfavorable rate structure or sewer multiplier | Read the utility's rate schedule | No |
| Revenue lower than represented | Water-consumption cross-check against claimed cycles | Reprice or walk |
That last row is the one buyers miss. A high utility ratio can mean costs are high, or it can mean the denominator — revenue — is smaller than the seller says. The cross-check that separates the two is comparing metered consumption against manufacturer per-cycle usage for the installed models. See water bill analysis.
Can Efficiency Fix It?
Partly, and less automatically than equipment marketing suggests. ENERGY STAR reports that certified commercial washers are on average 9% more energy efficient and use about 45% less water than standard models — a real effect that applies to qualifying models, not to every machine in a retool.
Model any saving from your own cycle volume and your own tariffs. A percentage from a brochure applied to a store nobody has measured is not a projection.
What to Do Next
Ask any seller for 24-36 months of original utility bills, not a summary. Then compute the ratio yourself, compare it to the 20% median, and get the explanation for any gap in writing before you agree a price.
The Next Step
Frequently Asked Questions
What percent of laundromat revenue goes to utilities?
A median 20% and a mean 21% of gross revenue, among 377 owner-operators reporting 2023 results to the Coin Laundry Association. Utilities were also the most-cited operator problem, selected by 53% of respondents, ahead of labor availability at 42% and labor cost at 37%.
Which utility costs the most?
Usually water and sewer combined, because many utilities bill sewer as a multiple of metered water and a laundromat is a high-volume water user. Gas for dryers and water heating is typically next, with electricity smaller unless the dryers are electric. The exact ranking depends entirely on local rates and the store's equipment.
Can I estimate utilities from a state average?
No. Electricity has a published state average — the EIA reports all-sector prices by state, with a 12.94 cents/kWh U.S. average for 2024 — but water and sewer are priced by the local utility and vary enormously between neighboring towns. Underwriting a store off a statewide average is guessing.
What does a high utility ratio mean?
Something specific, and worth finding before you buy: a leak, a running toilet, an inefficient or oversized water heater, a top-loader-heavy machine mix, an unfavorable rate structure, or revenue lower than represented. The first three are fixable, the fourth is a capital decision, and the last two are reasons to reprice.
Sources
- Coin Laundry Association, 2024 Laundry Industry Survey (377 owner respondents, 2023 operations) — https://member.laundryassociation.org/hubfs/IndustrySurvey24.pdf
- U.S. Energy Information Administration, State Electricity Profiles 2024 — https://www.eia.gov/electricity/state/
- ENERGY STAR, Commercial Clothes Washers — https://www.energystar.gov/products/commercial_clothes_washers
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.