Dog Daycare Business Description
A dog daycare provides supervision, care, and activities for dogs while their owners are away during the day. These businesses serve working professionals, busy families, and pet owners who want their dogs to have social interaction and exercise. Daycare facilities typically operate during regular business hours, Monday through Friday, with some offering weekend services.
The facilities include designated areas for different sizes and activity levels of dogs, rest areas, and outdoor spaces for exercise and play. Staff members supervise the dogs, maintain safety protocols, manage group dynamics, and provide updates to pet owners. Many facilities require temperament evaluations for new dogs and proof of vaccinations to maintain a safe environment for all animals in their care.
The most common business models in the dog daycare industry include:
- Traditional Daycare Facility: A physical location where dogs stay during daytime hours, featuring indoor and outdoor play areas
- Boarding and Daycare Combination: Facilities that offer both daytime care and overnight stays
- Home-Based Daycare: Small-scale operations run from a provider’s home with limited capacity
- Mobile Daycare Service: Providers who travel to different locations or neighborhoods to offer group play and care services
Related: Checklist To Start A Business
How Do Dog Daycares Make Money?
The primary source of income for dog daycare businesses comes from daily care fees, which typically range from $25 to $45 per day for each dog. Most facilities offer both full-day and half-day options, with pricing often determined by the duration of stay. Many businesses operate on a structured payment system where clients purchase packages of multiple days at a discounted rate or pay for monthly memberships. This creates a steady income stream while providing cost savings for regular customers.
Additional revenue sources for dog daycare businesses include:
- Overnight boarding services for extended pet care needs, usually charged at a nightly rate
- Training classes and behavioral modification programs to help dogs develop better social skills and obedience
- Grooming services such as baths, nail trimming, and coat maintenance
- Transportation services to pick up and drop off dogs from their homes
- Retail sales of pet supplies, food, toys, and accessories
Industry Statistics
Pet daycare services operate under NAICS code 812910: Pet Care (except Veterinary) Services, which includes pet boarding, grooming, sitting, and training services. This industry continues to evolve as more households include pets as family members. Here are the statistics that paint a picture of the industry.
Dog Daycare Industry Size & Growth: The pet daycare market reached $1.73 billion in sales during 2024. The industry is set to grow from $1.87 billion in 2025 to $2.85 billion by 2030, with a projected annual growth of 8.78%. This growth stems from increasing pet ownership and higher spending on pet services. Pet-related spending has also risen by 77.9% from 2013 to 2021, outpacing both entertainment costs and average annual income increases. (Grand View Research)
Number of Dog Daycares: Currently, approximately 20,000 pet care facilities and 9,000 boarding kennels are operating in the market. The industry includes both independent operators and franchise chains like Dogtopia. (Grand View Research)
Dog Daycare Profit Margins: Pet care service businesses typically see profit margins between 25% and 45%, while net profit margins range from 10% to 18% after accounting for operating expenses, labor costs, and overhead.
States with Most Dog Daycares: California, New York, Florida, Texas, and Illinois have the highest concentration of pet daycare facilities, correlating with their large urban populations and high pet ownership rates. (U.S. Census Bureau)
Startup Stories
Costs To Start a Dog Daycare
Starting a dog daycare business generally costs between $35,000 and $125,000. This range includes the basic necessities to open and operate a facility. The amount needed varies based on size, location, and services offered.
There are several expenses when starting a dog daycare, but here are some of the bigger costs to plan for:
Facility Costs: A commercial space for a dog daycare typically requires between $15,000 and $45,000 in renovations and setup costs. This includes installing proper flooring, separating play areas, adding drainage systems, and setting up ventilation. The space needs durable, easy-to-clean surfaces and proper barriers between different dog areas.
Equipment and Supplies: Initial equipment and supply costs range from $8,000 to $20,000. This covers items like kennels, beds, water bowls, toys, cleaning supplies, safety gates, surveillance cameras, and basic office equipment. The facility will also need storage units for supplies and personal items.
Insurance and Licenses: Professional liability insurance, property insurance, and necessary business licenses typically cost between $3,000 and $7,000 annually. Coverage should protect against accidents, injuries to dogs or staff, and property damage.
Staff Training and Certifications: Initial staff training and certifications cost approximately $2,000 to $5,000. This includes pet first aid certification, animal behavior training, and safety protocol instruction for employees who will handle the dogs.
These figures represent rough estimates, and actual costs will vary depending on location and facility size.