Are laundromats in decline, and how can POS systems help?

 Some people think laundromats are on the way out, replaced by in-home washing machines and delivery laundry services. But the reality is more nuanced: the industry isn’t dying, it’s shifting. Customer expectations, urban lifestyles, and tech adoption are rewriting how coin laundries survive – and thrive. The big question is whether laundromats that embrace modern tools, like POS systems, will lead the next phase, or whether those clinging to coin-only models will fade away.

Are laundromats actually in decline?

The short answer: not exactly. While some older operators are closing, new formats are opening in urban areas and regions with dense rental housing. Demand still exists because:

  • Many renters don’t have in-unit machines.

  • International students and shift workers value convenience.

  • Modern laundromats offer café-style comfort, Wi-Fi, and cashless options.

In fact, IBISWorld notes Australia’s self-service laundromat sector has held steady in revenue terms over the past five years, with consumer convenience driving growth. What is declining is tolerance for clunky, coin-only stores with dated equipment.

What’s driving pressure on traditional laundromats?

Several forces are reshaping the industry:

  • Rising home ownership and in-home machines: reducing casual walk-in use.

  • Cashless consumer habits: fewer people carry coins, limiting old machines’ appeal.

  • High operational costs: energy prices and maintenance squeeze margins.

  • Customer expectations: people expect speed, comfort, and digital payments.

This isn’t “decline” so much as a fork in the road: adapt or be left behind.

How do POS systems fit into the future of laundromats?

Here’s where POS (Point of Sale) systems make a difference:

  • Cashless payments: QR codes, cards, and mobile wallets remove the need for change machines.

  • Data insights: track busiest hours, top machines, and customer spend.

  • Dynamic pricing: offer discounts at off-peak hours to fill machines.

  • Customer loyalty: reward repeat visits, something impossible with coins.

  • Staff efficiency: integrate vending (detergent, soft drinks) into the same system.

Anyone who’s fumbled for $2 coins knows the pain. A POS system removes that friction and makes the whole experience feel modern.

Are there real-world examples of laundromats adapting?

Yes – especially in Melbourne and Sydney, where competition is stiff. Many new laundromats feature café seating, lounge-style waiting, and full digital payment integration. Operators report customers staying longer, buying extras, and treating the visit less like a chore.

Overseas, US chains like LaundroLab are expanding with full-service concepts, proving there’s global appetite for upgraded laundry experiences. That’s social proof in action: when others succeed with modernisation, it signals the winning path forward.

Will POS systems alone save laundromats?

Not by themselves. They’re part of a bigger shift that includes:

  • Investing in energy-efficient machines.

  • Offering Wi-Fi or comfortable spaces.

  • Marketing locally via Google Maps and socials.

  • Adding drop-off and delivery services.

POS systems act as the foundation, allowing other upgrades to run smoothly. Without them, laundromats risk being stuck in a coin-era business model that frustrates younger customers.

FAQ

Are laundromats profitable in 2025?
Yes, if operators modernise. Cashless systems, energy-efficient machines, and service add-ons keep margins healthy.

Do customers really care about digital payments?
Absolutely. With fewer people carrying coins, digital convenience is now expected, not optional.

Is the industry shrinking overall?
No – it’s consolidating. Outdated stores are closing, but modern ones are opening, often with higher revenue per customer.

Final reflection

Laundromats aren’t dying – they’re evolving. The ones leaning into cashless convenience, customer comfort, and smarter operations are proving resilient. The ones clinging to the past? They’re the ones quietly vanishing. For operators, the message is clear: the future isn’t coin-driven, it’s system-driven. A Coin Laundry POS System could be the difference between decline and reinvention.

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