Self-service laundromats, promoted on social media as a way to earn money with little effort, in fact require substantial labor and hands-on management, owners say. Several operators who started businesses after watching online videos have run into difficulties they did not expect.
The Wall Street Journal reported on the 19th on the surge of interest in laundromat ownership spreading through social media and the realities operators face.
Told They Would Just Collect Coins, They Ended Up Calling Police on Drug Dealers
Atousa Parsa, who runs a laundromat in Fullerton, California, decided to start the business three years ago after coming across videos on social media. Drawn by claims that the business could generate steady income without much effort, she bought an existing laundromat.
Running it proved different from what she expected. She has had to handle everything from maintaining the store to unexpected problems with customers. At one point she called police for help in removing drug dealers who had taken over the restroom.
"No matter how easy it looks, it takes a lot of work," Parsa said.
In the U.S., a growing number of people have become interested in opening self-service laundromats through TikTok and other social media platforms. Videos of operators pulling coins out of washing machines and counting bills have drawn large audiences, spreading the perception that the business generates money without much effort.
Economic anxiety and concerns that artificial intelligence will displace jobs have also fueled interest in passive income, or earnings that require little labor, analysts said.
A Video Showing $1,419 in Five Days Drew Crowds. Industry Officials Warn Otherwise
Industry officials say the videos do not adequately convey how difficult laundromats are to run.
Brian Wallace, chief executive of the Coin Laundry Association, said the problem lies in people thinking it is a magical business where they can show up once a week and pick up the coins.
Carlos Ochoa, who has 2 million followers on TikTok, became known for videos disclosing how much money he takes in at his laundromats. One video in which he said he had brought in $1,419 over five days drew more than 1 million views.
Ochoa himself cautioned against jumping into the business without adequate preparation based only on the earnings shown on social media. The revenue figures in the videos are not the net profit an owner actually keeps.
Labor Costs and Side Businesses: Another Reality of Running a Laundromat
Some operators have added revenue streams to cover the costs of running a laundromat.
Francis Dayamba, who runs a laundromat in Chicago, installed claw machines and electric-vehicle chargers at his store. With employees working from 7 a.m. to 8:30 p.m., the move was aimed at easing the burden of labor costs.
"To cover labor costs, you have to diversify your revenue streams," he said.
Others are turning social media into a new source of income. Mark and Cathy Huntebrinker, who run a laundromat in St. Louis, post videos on TikTok showing tasks such as clearing lint from washing machines.
One of their videos has drawn 24 million views. Mark said video earnings reach $5,000 in strong months.
Some operators show the downsides without holding back. Nancy Connelly, who runs a laundromat in South Carolina, films what she deals with on the job — pulling dog hair out of washing machines, confronting customers smoking in the restroom — rather than showing off cash receipts. "I try to be honest about the reality of running a laundromat and the daily work of building a business," she said.