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— Brian R. Store Owner/Operator
There are an estimated 29,500 laundromats in the United States.
That's more locations than Subway had at its absolute peak.
Subway, the chain that was on fire at one point. It was on every corner, it became the largest restaurant chain in America by location count at 27,100 stores in 2015.
Today? They are down to 19,502 locations.
In less than 10 years, they've closed 7,600 stores. That's not a restructuring or a minor adjustment. That's closing the equivalent of Taco Bell's entire U.S. chain.
And here's what got me thinking. If an industry with 27,000 locations can lose 28% of its stores while most people still think of it as successful, what does that mean for an industry with 29,500 locations?
The Rise and Fall Nobody Talks About
Remember when Subway was everywhere? At their peak in 2015, they had 27,000 U.S. locations¹, more than McDonald's and Starbucks combined. They were the success story everyone wanted to be like or part of. Low franchise fees ($116,000 versus millions for McDonald's)², easy entry, rapid expansion.
Today? Subway has shrunk to 20,100 locations³. They've closed 7,600 stores, that's more than Burger King's entire U.S. chain⁴.
But here's the part that should make every laundromat owner pause: it's not just about store count.
The Numbers Tell a Story
| Franchise | U.S. Locations | Revenue per Unit | Reality Check |
|---|---|---|---|
| Subway | 20,100 | $420-490k⁵ | Most locations, lowest revenue |
| McDonald's | 13,800 | $2.7 million⁶ | Fewer stores, 5.5x the revenue |
| Starbucks | 17,900 | $1.5 million⁷ | Similar footprint, 3x revenue |
| Chick-fil-A | 2,552 | $6 million⁸ | 1/8 the stores, 12x the revenue |
| Taco Bell | 7,400 | $1.5 million⁹ | 1/3 the stores, 3x revenue |
| Burger King | 6,700 | $1.3 million¹⁰ | 1/3 the stores, 2.6x revenue |
| Domino's | 6,800 | $800k-1M¹¹ | Even pizza delivery beats Subway |
Look at those numbers again. Subway has the most locations but generates the least revenue per store. Meanwhile, Chick-fil-A has fewer locations than Subway closed, yet each store generates $6 million.
The Pattern We're Seeing
Subway's playbook was simple, make it easy to get in, grow fast, worry about sustainability later. No protected territories meant multiple franchises could open near each other. The result? Cannibalization. Franchisees competed against each other, not just other brands. Meanwhile, Jersey Mike's - with just 2,997 locations, generates $1.3 million per store, nearly triple Subway's revenue.
Sound familiar?
The laundromat industry has 29,500 locations¹², more than Subway at its peak. In NYC, I regularly see laundromats directly across the street from each other or a short walk from each other.
When revenue disappoints, what happens? Owners add complexity to compensate. Subway added breakfast, salads, pizzas. Laundromats add wash-and-fold, pickup and delivery, dry cleaning. But here's what Subway learned, adding services to a weak foundation doesn't fix the foundation.
The Chick-fil-A Counter-Lesson
While Subway was racing to 27,000 locations, Chick-fil-A took the opposite approach. They're super selective. Harder to get a franchise than to get into Harvard¹³. Each location is carefully vetted for market viability. They have just 2,552 locations, but each one thrives.
The question isn't whether we can open more laundromats. It's whether we should.
What This Means For Our Industry
I'm not saying laundromats are doomed, far from it. People will always need clean clothes, until clothes don’t need cleaning anymore 🤔. But I am seeing patterns:
- Markets have capacity limits. When you exceed them, everyone struggles.
- The "easy entry" narrative attracts too many players, creating over saturation.
- Low revenue per location leads to deferred maintenance, poor service, and zombie businesses.
- Adding complexity (more services) without fixing core economics just increases problems.
Thinking about the thinking of laundry:
When you realize success isn't about being everywhere, it's about being excellent wherever you are.
The Question Worth Asking
If your market has four laundromats, each making $300k, would it be better to have two making $600k? Is that consolidation or sustainability?
Subway is learning this lesson after losing 7,600 stores. The question is, will we learn from their example, or repeat it?
That's all I got for you today.
Waleed
PS: Have you gotten your ticket yet? Laundry CEO Forum
Echoing the thoughts of Bill Gates.
Success is a lousy teacher. It seduces smart people into thinking they can't lose.
Footnotes:
¹ Subway Peak Locations - QSR Magazine, 2015
² Subway Franchise Costs - Vetted Biz, 2024
³ Current Subway Locations - QSR Magazine, 2025
⁴ Subway Store Closures - Restaurant Business, 2025
⁵ Subway Revenue per Unit - Restaurant Business, 2024
⁶ McDonald's AUV - QSR Magazine, 2025
⁷ Starbucks Revenue per Store - Statista, 2024
⁸ Chick-fil-A Store Performance - QSR Magazine, 2025
⁹ Taco Bell Performance Metrics - Food Industry, 2024
¹⁰ Burger King Revenue Data - NRN, 2025
¹¹ Domino's Store Economics - Food Industry, 2024
¹² U.S. Laundromat Count - CLA, 2024
¹³ Chick-fil-A Franchise Selectivity - Business Insider, 2024
