Does anyone here have experience with buying a dry cleaning business?

March 24, 2024

by a searcher from Drexel University in Philadelphia, PA, USA

I’m wondering what the pitfalls might be to watch out for with a dry cleaning business.

Any particular cons to a business of this type or advice on what to watch out for would be super helpful.

I’d also love to hear from anyone who has done it what your experience was like.

Thanks in advance.

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Reply by a searcher
in Cincinnati, OH, USA

Successful dry cleaner's today are not selling dry cleaning and laundry services, they sell TIME & CONVENIENCE. Minus the occasional irregular client who has a wedding or funeral to attend, a quality cleaner's regular clientele is dual working, middle-upper class adults who don't want to spend their free time doing the laundry and/or ironing. Most items cleaned can be cleaned at home and are NOT "dry clean only," clients use a professional cleaner for the finishing process. Professional equipment and steam produces a much better item than any at home iron. Laundered shirts is a major volume item, but has limited margins. While a cleaner's demand has changed in recent years, so has the supply with consolidation of lower performers and/or discount cleaners. The discount cleaner model is outdated, but a quality cleaner, eco-friendly cleaning methods (green dry cleaning and professional wet cleaning), free pickup & delivery services is still necessary in most markets. Smaller commercial (police, fire) work is available, but larger fleet accounts will be serviced by uniform (Cintas) or commercial linen cleaners, and hotel business is dependent on your location and infastructure. While laundry (by the lb) seems like a growing trend to outsiders, our experience was that most of society isn't prepared to outsource that service yet unless under special (health, travel) circumstances. Industry is labor intensive, so personnel and training is critical. Equipment is fairly standard, but a solution for regular repairs and maintenance is critical. DLIonline.org and The Clean Show are good resources. We had a successful exit, so always happy to discuss with others.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Having financed numerous dry cleaning businesses over the years, I can tell you from a lending perspective the industry has had some challenges as of late. With many people working remotely, demand for dry cleaning has dropped quite substantially with less people required to wear dress clothes. The dry cleaners we have seen that have continued to be successful and have managed through this drop in business have typically had the following attributes:

1) Full service, meaning they can dry cleaning just about anything.
2) Have some corporate accounts doing towels, bedding, uniforms etc. for hotels, restaurants, medical facilities, etc.
3) Offer a pickup and a drop off service.

The other thing you need to keep is an environmental risks. Although current dry cleaning facilities are quite clean, any facility that has been around for an extended period of time could have some environmental issues because the previous chemicals used were very toxic and seeped into the ground at most locations. So if you are buying a facility with a dry cleaning business that has been in business for 20 years or more, be prepared for some potential environmental concerns.

If you have any additional questions you can reach me directly at redacted

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