The Hidden Costs of In-House Laundry for Restaurants

The process of managing a restaurant is already a challenging one; the balance between quality food, customer service and a clean and conducive environment. Washing is one of the areas that are usually neglected. Laundry is an important element of restaurant activities, whether it is table linens and napkins, or staff uniforms and kitchen towels. Most of the restaurant owners believe that doing the laundry by their own hands is less expensive and gives them a sense of control, yet they are not aware of the cost pitfalls of in-house restaurant laundry.
In this blog, we will discuss these hidden costs, how they affect your bottom line and why it is usually better to outsource the laundry services.
1. Original investment in equipment.
On the face of it, purchasing commercial washers and dryers might appear to be a single purchase, but the money involved extends much further than the purchase price. Large-capacity laundry machines that can accommodate restaurant size loads are costly. On top of that you will need:
·      Industrial washers and dryers
·      Folding table racks and laundry carts.
·      Water filters or softeners to preserve the quality of the fabrics.
·      Installation fees such as plumbing and electrical changes.
Too small or mid-sized restaurants, this initial investment can soon consume budgets otherwise available to marketing, menu development or staff training.
2. Ongoing Utility Bills
Laundry machines use a lot of water electricity and gas. Consider the following:
Water consumption: It is possible to increase water bills by washing several loads each day.
Electricity & gas: Dryers and hot water systems are large energy consuming systems.
Water heaters and plumbing: Due to continuous strain, wear and tear may occur.
These recurring costs are usually underestimated by the restaurant which may amount to hundreds of dollars monthly depending on the volume of the laundries.
3. Maintenance and Repairs
Commercial laundry machines are designed to be durable yet as with any equipment they need to be serviced regularly. Unplanned failures are both time and money consuming. Some hidden costs include:
·      Service Contract or emergency repair charges.
·      Spare parts which may be costly and difficult to find.
·      Downtime: Machines are out of service and they affect the running of the restaurant.
When your washer malfunctions on a weekend with a long queue of people in the queue, you might have to pay high repair rates or have to scramble to get your laundry outsourced on short notice which is much more expensive.
4. Labor Costs and Time
There is in-house laundry which needs staff. Regardless of whether you are paying full-time hired staff or you are redeploying current employees labor expenses are soon to pile up. Consider:
·      Wages for laundry staff
·      Education expenses in order to clean fabrics in a proper way.
·      Washing, drying, folding time and ironing time spent rather than time in the service in restaurants.
·      The fact is that laundry is a time consuming activity, and when employees are taken out of service areas the efficiency of the organization and satisfaction of customers can decrease.
5. Chemical and Detergent Expenses:
Restaurants that do laundry themselves must budget:
·      Commercial quality laundry soap and conditioners.
·      Grease, wine, and sauce stain remover.
·      Kitchen towel and apron disinfectants.
Such expenses appear small initially but may accumulate a lot throughout the year and particularly when attempting to keep the premises professionally clean as guests require.
6. Wear and Tear on Fabrics
Linen, napkins and uniforms can be subjected to quicker degradation when not taken care of by professionals. Poor washing procedures or extreme chemicals may result in:
·      Cattered colors (wearing out the professional appearance of uniforms and linens)
·      Fabric thinning and tears
·      Making up or distorting costly linens.
This implies that restaurants must have to change the fabrics more frequently which increases costs in the long term.
7. Space Requirements
Laundry in house has got to have physical space to place machines folding area and storage of chemicals. Space is money to restaurants that are located in strategic areas in the city. Each square foot of the laundry area is space that is consumed at the expense of:
·      Extra tables at the restaurant (more income per service)
·      Enlargement of kitchen to allow better working functions.
·      Food and drink storage.
·      Restaurants lose the opportunity to make money by allocating space to laundry.
8. Opportunity Cost
The least obvious hidden cost is probably the opportunity cost. The time and money used in the process of laundering clothes every hour and dollar can be spent in:
·      Improving the dining experience.
·      Improving food quality
·      Advertising to get a new customer base.
·      Developing employees to provide more service.
Restaurants which prioritize laundry rather than the business lose the opportunity to grow and make profits.
The More Smart Solution: Laundry Outsourcing.
By outsourcing to a professional laundry service, these hidden costs are removed and there is an extra benefit:
Uniform quality: Linens are washed, pressed and delivered on a professional basis.
Fixed costs: You are not charged based on variable utility and repair bills, but a standard service fee.
Time savings: Employees will be able to pay full attention to the work with customers and restaurant management.
Prolonged life of fabric: Experts add methods of lengthening the life of fabrics.
Green business practices: Outsourced suppliers tend to operate in a more environmentally-friendly way, which makes them attractive to environmentally-conscious customers.
Conclusion
On the surface in-house laundry may appear to be economical but the truth is full of closets and secret costs; equipment, utilities, repairs, labor, chemicals, space and opportunity costs. In the case of restaurants the dollar and the minute are precious. Outsourcing laundry services will help the restaurant owners save money safeguard their staff keep their fabrics longer and concentrate on what is of utmost importance: making the restaurant serve an outstanding dining experience.