Local laundromats are gradually vanishing, while laundromat chains are expanding in various forms across South Korea. Over the years, the industry has evolved from first-generation laundry franchises and 24-hour self-service laundromats during COVID-19 to recent developments like mobile app-based laundry pick-up and delivery services. With the rise of single-person households and advances in technology, a market has emerged targeting individuals who “lack the time or energy for laundry.”
These services extend beyond traditional clothing and bedding care, now catering to items like pet products, car seats, and strollers. Laundry businesses aim to position themselves as essential daily services.
Companies like Cleantopia and World Cleaning have expanded their franchises by improving accessibility, appealing to retirees as franchise owners, and increasing their number of outlets. Cleantopia now operates 2,900 stores nationwide, claiming nearly 80% of the market. Last year, it reported sales of 96.5 billion won (around $73.16 million) and an operating profit of 11.9 billion won ($9.02 million). World Cleaning has also grown rapidly, with 460 stores currently in operation.
From a consumer standpoint, what sets these chains apart from conventional community laundromats is their fixed pricing and clear timelines for service completion. They also offer compensation for laundry issues, reducing disputes with store owners. As a result, the number of independent laundromats dropped from 27,000 in 2017 to just 20,000 over six years, while Cleantopia and World Cleaning saw more stable store numbers. Cleantopia has also expanded its services to include hotels and hospitals, benefiting from economies of scale.
There has also been a surge in unmanned, 24-hour dry cleaners. According to a survey by the Seoul Metropolitan Police Agency, 896 laundromats in Seoul, accounting for 34.1% of all unmanned stores, are automated.
However, unmanned laundromats present challenges, particularly in lost or unpaid laundry cases. Mobile laundry applications have emerged to address this issue. Washswat, launched in 2016, and LaundryGo, established in 2019, are prime examples. Customers can schedule laundry pick-up through these apps, typically in the early morning, with delivery within two to three days. Washswat, which also operates a franchise chain, has experienced over 200% annual growth since its founding and has even acquired a laundry facility. Both Washswat and LaundryGo now offer specialized services, including removing pet hair from baby car seats and strollers. Washswat reports having 1.8 million subscribers and handling over 10,000 laundry items daily.
As the app-based delivery collection service grew, the first-generation Cleantopia also started a “laundry pick-up and delivery” service. It is a “no-contact” service in which the franchisee picks up the laundry in front of the customer’s house and puts it back in front of the customer’s house after washing it.
“At some locations, annual sales grew from 100 million won ($75,000) three years ago to 400 million won ($303,000) after they launched a pickup service,” an industry insider said.
