Green Basket Blog

The Hidden Environmental Cost of Old Laundromats — And Why Time Is Running Out

Written by Joe White | Aug 22, 2025 5:05:31 PM

Why Modernizing Matters for Communities, Owners, and the Planet

Introduction

Laundromats are an essential service in communities across America, yet many are operating with outdated equipment and inefficient infrastructure. While they continue to provide convenience and necessity, old laundromats often carry hidden costs—particularly environmental ones.

From excessive water and energy use to outdated chemical processes, older facilities are significantly less sustainable than their modern counterparts. For investors, operators, and communities alike, recognizing these costs underscores why modernization is not only profitable but socially and environmentally responsible.

The Scale of the Problem

Water Consumption

  • Traditional top-load washers can use 30–40 gallons per load, compared to 12–15 gallons in modern front-load machines (Alliance Laundry Systems, 2023).

  • A 40-machine laundromat with older washers could waste up to 1 million gallons of water annually compared to a modernized site.

Energy Inefficiency

  • According to the U.S. Department of Energy, laundromats with outdated equipment consume 30–50% more electricity and natural gas.

  • Outdated dryers lack moisture sensors, causing unnecessary over-drying and wasted energy.

Carbon Footprint

  • Older laundromats are estimated to contribute significantly more greenhouse gas emissions, with CO₂ output per store exceeding 100,000 pounds annually when machines are past efficiency standards.

The Financial Impact on Owners

Environmental inefficiency also translates to direct financial losses:

  • Utility costs are often the #1 expense for laundromat owners (Coin Laundry Association, 2023).

  • Operators who modernize with high-efficiency machines often report 30–40% savings on utilities, directly boosting EBITDA margins.

  • Customers increasingly value sustainability; modern laundromats attract higher traffic and loyalty, especially among younger demographics.

Community and Public Health Considerations

  • Air quality inside outdated laundromats can be compromised by older gas dryers and poor ventilation systems.

  • Excessive water consumption strains municipal water systems, especially in high-density urban markets like Atlanta.

  • Sustainable facilities strengthen community reputation and help neighborhoods align with broader city sustainability goals.

Success Stories

  • Eco Laundry Company (New York & Buenos Aires): Transitioned to 100% eco-friendly equipment, solar-powered facilities, and biodegradable detergents. They saw increased profitability while earning strong press coverage and loyal customers.

  • Soapy Joe’s (California): Upgraded equipment cut water consumption by 40%, saving $50,000 annually while reducing environmental impact.

Why Now is the Time

  1. Regulatory Pressure: States and municipalities are pushing for more energy-efficient infrastructure.

  2. Investor Momentum: ESG-focused investors are actively seeking opportunities in sustainable local businesses.

  3. Competitive Advantage: Owners who sell outdated laundromats today often achieve higher multiples if buyers can quickly upgrade and capture efficiency gains.

Conclusion

Old laundromats may still serve their neighborhoods, but their environmental and financial inefficiencies make them unsustainable long-term. By modernizing—or selling to operators like Green Basket Laundry who are committed to efficiency and sustainability—owners not only secure financial upside but also deliver positive community and environmental impact.

Green Basket Laundry is leading the charge in modernizing America’s laundromats, creating cleaner, greener, and more profitable facilities.

References