HOLY GRAIL

‘A data centre that happens to wash clothes’ is how Joy Opiniano describes a self-service laundromat business. Joy is a systems engineer and serial entrepreneur, originally from the Philippines and living in Wellington since 2019. He and his wife Nerissa, a pharmacy technician, launched Broadway Laundromat (pictured above) in Strathmore Park three years ago. Within days of our conversation, they were opening their second Speed Queen-equipped laundromat business in Rotherham Terrace, Miramar.

 “In 2022 we already had nine business interests and were looking at further diversification,” says Joy. “Self-service laundromats generally operate with very few if any employees, which means no complex HR management issues. And the comprehensive Speed Queen Insights platform that we can manage from our smartphones is the ‘killer feature’ for busy entrepreneurs like us. That gives us a 360-degree view of our laundromat business, with remote access to machine status, real time revenue reports, and activation of ‘lucky cycle’ customer rewards.

Joy and Nerissa say they were also impressed with the recession resistance of the laundromat business. “Clean clothes are a non-negotiable necessity. When the economy dips, many people transition from owning washing machines to using laundromats.

“We like the financial benefits too. Speed Queen-equipped laundromats regularly see a 20-35% return on the initial investment of $250,000 to $350,000. And, because customers pay upfront and digitally, there are zero receivable issues – a rare luxury in business. This is the holy grail of modern entrepreneurship – recession-proof, automated, tech-enabled, semi-passive income.”

A great business partnership

Speed Queen Laundromats is not a franchise, but more a business partner providing substantial wraparound support to laundromat owners. This includes design and layout, access to finance for laundry equipment, and advice on signage and advertising.

“Technical and engineering edge was another important consideration for us in choosing to work with Speed Queen,” explains Joy. “Speed Queen commercial units are built for a 30,000 cycle lifespan, equating to more than ten years of heavy-duty use. Where competing brands use plastic components, Speed Queen uses metal. This gives durability and reduces the frequency of service calls.”

When the couple fitted out Broadway Laundromat, they leveraged their own electrical and plumbing business connections. As Joy explains, “We could use a ‘smart first’ design. Instead of retrofitting tech into old pipes, we built the infrastructure to support it. We didn’t just plug in machines but installed robust network architecture. This means dedicated VLANS for the Speed Queen Insights platform, separate guest Wi-Fi, and a high-security layer for the CCTV and door access systems.

“Cycle data is just one example of analysis we access remotely through Insights. If ‘Big Load’ washers are hitting 90% capacity while smaller machines sit idle, we know exactly how to pivot our marketing or future equipment mix. The system also alerts us to a leak or a slow drain before it becomes a flood or lost day of revenue.”

Location is key

Joy has no hesitation sharing his breakdown of the socioeconomic and strategic demographics that typically signal a ‘goldmine’ location for a self-service digital laundromat.

“The people we call necessity users lack laundry infrastructure at home. They are a core demographic of mainly renters. Look for somewhere near apartment complexes which often have unreliable basement machines or no laundry hook-ups at all,” explains Joy. “The blue-collar workforce is another indicator. Often these are households with multiple wage earners in trades, hospitality or healthcare, and who generate high volumes of washing… uniforms, heavy workwear, etc.

“Then there are the time savers who may have a washer of their own but choose the laundromat for efficiency. Larger families, or students who often wait weeks for clothing to pile up and then wash everything in 90 minutes using five big machines simultaneously.

“Commercial accounts are another potential customer category. These are local businesses such as Airbnb and short-term rentals, gyms, beauty salons and pet groomers that generate a constant need for washing, but don’t want to invest in laundry equipment.

“The business isn’t just about selling soap and water; it’s about selling time and access to infrastructure, to a wide range of customers.”

Hands-off operations

“With Speed Queen,” continues Joy, “we have eliminated the ‘coin headache’ of collection, security and banking, making the business even more hands-off. The Speed Queen cashless system provides a digital audit trail that integrates directly into our bookkeeping software, removing the potential for human error.

“Going cashless helps prevent ram raids and robberies, eliminates the risks of staff or collectors skimming coins, and we also save hours on the logistics of physical cash transportation. The shift from coin operation to the digital era has completely changed the risk-reward profile of this industry.”

Speed Queen’s Head of Laundromat Sales, Royce Little, says that some of the owners they partner with live a long way from their laundromats. “As well as having been very hands on in the fit-out of his business, Joy likes to take care of the one manual job that the business requires, the cleaning. But many of our owners prefer to employ contract cleaners and can easily oversee their activity through the digital security systems.”

And the last word goes to Joy, who asks, “Are you also looking for business diversification or a rewarding semi-passive side-hustle? Our advice is to look no further than a remote-control Speed Queen-equipped laundromat – call Royce today!”  

See this advertorial on page 45 of Franchise New Zealand magazine Year 35 Issue 01

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