The laundromat market - France (2024)

1.2 The global market

Estimated at $**.** billion in ****, the global coin laundry market is expected to grow at a CAGR of *.*% to ****.

Projected growth of the global coin laundry market World, **** - ****, in $ billions Source: ****

Millennials, graduates and working professionals are the main customers for laundromat services, as are boarding schools and hostels. In developing countries, notably India and South Africa, the informal sector dominates this market. Improved living standards and rising incomes should boost demand over the forecast period.

The rise of the Internet in these countries is also contributing to growth in the online services market. The rise in dual-income households is encouraging the purchase of quality clothing, stimulating demand for more specialized laundry services. The trend towards choosing quality clothing and linens has led to an increase in demand for more sophisticated laundry services, including laundromats, which offer convenient services such as home delivery and attractive discounts[***].

1.3 The domestic market

In France, laundromat activities are recorded in the INSEE nomenclature under NAF code **.**B: "Retail laundry and dry-cleaning""This code covers the following activities:

Laundry, dry-cleaning, ironing, etc., of all articles of clothing (***) and textile materials, carried out on behalf of private individuals; Retail laundries, including depots; Self-service laundries; Supply of linen, workwear and similar items by retail laundries.

Sales trends in retail laundry and dry-cleaning activities (***) France, ****-****, in millions of euros Source: ****

Since ****, the market has experienced a period of dynamic growth. It will reach its peak in ****, with sales of *** million euros for the year . While this sales figure includes activities other than laundromats, it remains a good indicator for approaching the market.

In ****, the health crisis turned the industry upside down. This was the lowest level of activity recorded since ****. Sales fell by **. *% compared with ****, from *** million euros to *** million euros.

1.4 The impact of the health crisis on the sector

A market heavily impacted by the health crisis

Insee also provides a comparison of sales index trends for activities registered under NAF code **.**B in **** and ****.

sales index trends for retail laundry and dry-cleaning activities France, October **** - September ****, index *** in **** Source: ****

A significant drop in sales is therefore recorded during the period of initial containment. The recovery from May onwards is timid, struggling to reach the levels achieved over the same period the previous year. In the end, sales followed the market's seasonal pattern, but were hit harder than last year by weak demand in July.

2.1 French washing machine ownership and frequency of use

Laundromats are mainly aimed at people who don't have a washing machine at home . The French laundromat market is therefore mainly targeting students and young couples(***), **.*% of whom don't have a washing machine at home. conversely, over **% of people aged ** and over own a washing machine in ****, according to the latest INSEE publication on the subject.

Washing machine penetration rate by age Source: ****

However, households are tending to equip themselves more and more. Between **** and ****, the proportion of under-**s owning a washing machine rose by *%, from **% to **%.

Percentage change in the number of washing machines owned by French households France, ****-****-****, in %, by age

Another reason for using coin-operated laundries is the size of the drums provided, which can also encourage households that already have a washing machine to use coin-operated laundries for larger items (***).

Finally, most households use their washing machine several times a week. Around **% use it at least * times a week, according to a **** ADEME survey. It's easy to imagine that the comfort of having a machine at home increases the frequency of washing (***). But it's safe to assume that laundromat customers must have equivalent needs, and so spend at least once a week in these ...

2.2 Demand mainly located in highly urbanized areas and student neighborhoods

Every year, the French Ministry of Education publishes a new edition of Repères et Références statistiques, a report on education in France. In ****, the number of students in higher education will reach *.*** million, a drop of *.*% compared to ****.

Number of students enrolled in higher education France, **** - ****, in thousands Source: ****

We can therefore assume that these trends will have an impact on demand for laundromats. As indicated on the SpeedQueen franchisor's website, the student population is one of the market's main targets. A large number of laundromats are strategically located in the vicinity of universities, or in neighborhoods with student and university residences. The map of universities in France, cross-referenced with the laundromats listed on the Yellow Pages website, illustrates this strategic geographic positioning. The map is available by following this link: HERE.

Distribution of French students across the country :

There is a very high concentration of students in France. **.*% of French higher education students are located in the Île-de-France region.

2.3 Seasonal demand: holidaymakers love laundromats

Seasonality of sales :

As mentioned in the section on the impact of Covid-**, the evolution of the sales index allows us to examine the seasonality of the market. INSEE allows us to make the comparison in the graph below.

sales index trends for retail laundry and dry-cleaning activities France, ****-****, index *** in **** Source: ****

We can immediately see that demand for coin laundries is very low in July, then very high in August, surely due to vacation departures, which prompt laundries to close at this time. The rest of the year remains at a constant level, except for ****, a year marked by confinement.

evolution of monthly interest in "Self-service laundries" (***):

Google Trends allows us to observe the evolution of the number of searches made for the term "Self-service laundromat" each month of the year. The graph below compares the years ****, ****, **** and ****.

evolution of interest in the term "lavomatique France, ****-****, Google Trends index Source: ****

The same peak in searches can be observed in August. Summer demand is therefore particularly strong. July's drop is much less obvious here, however. A decline can nevertheless be observed in May, at the end of the academic year for most establishments.

3.1 Value chain

Source: ****

The value chain in the coin laundry sector is relatively simple. It consists of purchasing commercial equipment from specialist stores: mainly washing machines, but also cleaning equipment and possibly more, depending on the services offered by the laundromat.

Owners can then decide whether to remain independent or join a franchise.

The final step is to maintain the laundries so that they remain functional, especially as some of them are self-service, and therefore unsupervised, so it's important to ensure that these premises remain in good condition.

3.2 Number of businesses, number of employees for retail laundries - dry cleaners: focus on laundries

Number of companies and employees under NAF code **.**B:

INSEE enables us to study changes in the number of companies and employees registered under NAF code **.**B, which covers laundries and dry cleaners.

change in number of companies and employees for NAF code **.**B (***) France, ****-****, in units Source: ****

Over the same period, the number of companies declined significantly, by **.**%. This trend indicates a tightening of the market, which could be attributed to company consolidation or a decline in interest in this activity. At the same time, the number of employees in the sector also fell, albeit less sharply, by *.**%. This reduction in employment, though more modest, reflects the challenges facing the sector, possibly due to economic or technological factors. Taken together, these trends paint a picture of a contracting market, marked by company closures or mergers and a slight decline in job opportunities in this specific field in France.

There is a high concentration of laundries in the Île-de-France (***) regions.

The distribution of employees confirms this concentration.Île-de-France (***).

Laundromats in France:

Laundromats in most major cities are a mature market[***].

It's a highly competitive market, which is why, like dry cleaners, self-service laundries are gradually being organized into branded networks. ...

3.3 A wide range of profitability levels

The société.com website allows you to establish and compare the financial results of several laundromats in different situations:

Case *: A laundromat located in a sparsely populated area

This laundromat is located in a town with a population of **,***.

Case *: A laundromat in Paris

Case *: a laundromat near a railway station in a high-density city

Case *: A Parisian laundromat in the Sorbonne district (***)

Conclusion

From these few observations, we can draw the following conclusions:

Sales and profitability are highly volatile. Sales figures for the various laundries vary widely between areas close to universities (***) respectively. Sales per launderette are higher in the latter two cases. We therefore need to consider the size of the city, the environment in which the laundromat operates and the competitive landscape before setting up shop; The profits generated by an average laundromat are low, at around *** euros a year. What's more, it's not uncommon to see losses for a given year. These losses are often due to machine repair costs. Only laundries with a higher level of activity generate substantial profits (***); You'd think that densely populated areas like Paris would be the most strategic. However, a comparison of cases * and * highlights theimportance of proximity to target ...

3.4 Opening a coin laundry in France

Although opening a laundromat does not require a specific diploma, the operator must ensure not only regular maintenance of the equipment, but also compliance with regulations and the accounting and management of the service on offer. regular maintenance of the equipment, as well as compliance with regulations, accounting and management of the service offered.

According to the Legalstart website, opening a self-service laundromat requires an initial investment of around €**,***, excluding location-related costs, and can generate attractive profits for medium-term amortization. The premises, machines and cash dispensers make up the lion's share of incompressible expenses. The average net margin can be as high as **% of pre-tax sales, and average annual sales for a laundromat range from €**,*** to €***,***. This wide range reflects the diversity of locations, which can influence sales. Factors such as catchment area, size and location of premises, as well as competition in the sector, can all contribute to these variations[***].

The advantages of the self-service laundromat business are many:

Good profitability ; Flexible working hours; Low staffing requirements; No inventory; Low overheads; Cash payment, no need for working capital; Average machine life is between ** and ** years.

The different stages in opening a laundromat

*. Administrative procedures

The first step is to ...

3.5 Dry cleaner and laundromat franchises

The dry cleaning and laundromat market offers good profitability opportunities for investors.

Wash'N Dry

Wash'N Dry is a network of laundromat franchises offering both washing machines and dryers. It is also possible to combine the business with other services such as ironing, alterations and sewing. Since its creation in ****, the brand has expanded rapidly, and by **** will have around *,*** outlets. The company has been a resounding success, with **% of the laundries opened in the last ** years still in business[***].

Speed Queen

Speed Queen offers a partnership to operate self-service laundries without the usual franchise costs, such as entry fees or royalties. Founded by Alliance Laundry Systems, this century-old brand offers complete support from financing assistance to the launch of the laundry, including the choice of premises. Speed Queen focuses on modern, energy-efficient equipment. The total investment for a laundromat is estimated at between **,*** and ***,*** euros, with a minimum personal contribution of **,*** euros. No specific skills are required to run a Speed Queen Laundromat[***].

Aqua Blue

Aqua Blue is an ecological dry-cleaning concept developed by Armstrong France. This innovative concept is based on aqua-cleaning, an environmentally-friendly technology that complies with European standards. Aqua Blue offers full support for entrepreneurs, including choice of ...

4.1 Example of average rates

In most cases, several types of washing machines and dryers are available, with capacities ranging from * to ** kg. Laundromat prices vary according to washing machine capacity:

Source: ****

To illustrate these ranges, the table below shows the prices charged by Lavomatic in Rouen, with * locations:

Source: ****

4.2 Equipment available

Laundromats are generally equipped with four types of machines:

*. The washing machine

In addition to drum size, the factors that vary when choosing a washing machine are noise and space optimization, especially for residential laundries, as well as spin power.

For residential laundries

These machines can operate free of charge, with individual coin-operated machines or a central payment system. They are often installed in hotels, military sites, campsites, university halls of residence and workers' residences.

Prices can range from €*,***(***) to €**,***, depending on brand and drum size[***].

Single-spin washing machines

For large-volume machines, a single-spin washing machine is preferable for economic reasons and to avoid tearing, especially on comforters, even if the spinning process will take longer.

These machines cost around €*,***[***].

Super-extracting washing machines

Super-extractors are designed for self-service laundries frequented by students, as they save time on spinning.

The price of this type of equipment is around €*,*** for an **kg model - a **kg washer costs around €**,***[***].

*. Dryers

There are two types of dryer: electric and gas. Gas dryers are more economical to run and offer better drying quality. They do, however, require a fairly substantial evacuation system, which is sometimes technically difficult.

Prices range from €*,*** to €*,***, depending on ...

4.3 Collaborative platforms struggling to take off

La Machine du Voisin:

La Machine du Voisin was a collaborative platform that offered a slightly lower average price for laundry than traditional laundromats: * euros, compared with * euros on average for the latter. But the platform's main focus was on creating social links. The service, which allows private individuals to share washing machines, enables them to use a neighbor's machine by making an appointment. As the platform is no longer active, we can deduce that the business model didn't work, and that laundromats remain the main solution favored by private individuals.

Cowash:

Another platform in the sector, Cowash, offered a slightly different business model. The start-up offered a laundry cleaning and ironing service provided by trained Cowashers. The Cowasher would collect the dirty laundry directly from the home and return it ** hours later. The Cowasher were selected according to a precise quality charter. In most cases, they used Le Chat products, with which the platform had formed a partnership. Finally, each order was insured by MAIF, another major partner of the platform.

However, on October **, ****, this company was placed under simplified judicial liquidation, putting an end to the platform's activity.[***]

There are also other platforms that have developed around laundromats to ...

5. Consumer safety framework

According to the DGCCRF (***), operators of coin-operated laundries are legally obliged to check weekly that the safety devices on washing machines and spin-dryers available to the public are working properly. They must record these observations in a register. In addition, they must have a declaration of conformity for each machine installed on their premises, supplied by the machine manufacturer[***].

Laundromat operators are obliged to clearly display a list of all services provided, both inside and outside the store. This display must also indicate any additional charges for complementary or special services, such as laundry detergent or bleach. It must include a series of safety warnings, particularly concerning the supervision of children and the correct use of machines. In addition, the poster must provide a telephone number so that users can report any operating problems during the laundromat's opening hours, particularly those concerning machine safety devices[***].

Laundromat operators are required to check weekly that the safety devices on washing machines and spin-dryers accessible to the public are working properly. These checks are designed to ensure that machines can only be operated when their lid or door is properly closed and locked, and to prevent the user from opening the lid or door ...

6. Segmentation

• Lavomatique
• R&O (Baleo Pressing & Matelo Laverie)
• Laverie Lav'Club
• Wash N'Dry (Groupe Armstrong)
• PhotoMe International - La Wash
• Brandt
• Electrolux Laundry Systems
• Cowash
• Miele
• Wash Me- Revolution Laundry
• Alliance Laundry System
• Whirlpool
• LG Electronics
• Superdry
• Pressing 5àsec
• Habitat Sympa