For businesses that handle a significant amount of laundry, deciding whether to use a commercial laundry service or process laundry on-site can have a major impact on operating costs, staffing, and daily operations. Hotels, senior living communities, healthcare facilities, gyms, salons, restaurants, and other businesses may all face this decision at some point.
Outsourcing laundry can reduce the need to purchase and maintain equipment, while an on-premise laundry gives businesses more control over when and how laundry is processed.
So which option makes more sense?
The answer depends on the type and volume of laundry your business handles, the available space, labor costs, and your long-term goals.
What Is a Commercial Laundry Service?
A commercial laundry service handles some or all of the laundry process for a business.
Depending on the provider and the type of business, this might include:
- Picking Up Soiled Linens
- Washing And Drying
- Folding
- Sorting
- Returning Clean Items
This approach allows the business to outsource much of its laundry operation rather than managing the process internally. For a business with limited space or relatively low laundry volume, outsourcing may seem like the simplest solution. But convenience isn't the only factor to consider.
What Is an On-Premise Laundry?
An on-premise laundry, often called an OPL, allows a business to process its laundry at its own facility. The business purchases or leases commercial laundry equipment and handles the washing and drying internally. This approach can be useful for businesses that need frequent access to clean linens, uniforms, towels, or other items.
Facilities with an OPL might include:
- Hotels
- Senior Living Communities
- Healthcare Facilities
- Gyms And Fitness Centers
- Salons And Spas
- Restaurants
- Animal Care Facilities
The right equipment depends heavily on the type and volume of laundry being processed.
Is It Cheaper to Outsource Laundry?
Not necessarily. This is one of the biggest questions businesses should ask before choosing between a commercial laundry service and an on-premise operation. Outsourcing creates a predictable service expense, but that doesn't necessarily mean it's the least expensive option over the long term.
When comparing the two options, consider the full cost of outsourcing, including:
- Service Fees
- Pickup And Delivery Charges
- Minimum Order Requirements
- Replacement Or Loss Fees
- Contract Terms
- Price Increases Over Time
Then compare those expenses with the cost of operating an on-premise laundry.
What Does It Cost to Operate an In-House Laundry?
An on-premise laundry has its own expenses.
You'll need to account for:
- Equipment Purchase Or Lease
- Installation
- Water
- Gas
- Electricity
- Detergent And Supplies
- Maintenance
- Repairs
- Labor
- Equipment Replacement
At first glance, that may make outsourcing seem easier. But an in-house operation also provides a business with greater control over its laundry process, which can have financial and operational value.
What Are the Benefits of an On-Premise Laundry?
One of the biggest advantages is control. With an OPL, businesses don't have to wait for a delivery truck to return clean linens or uniforms. Laundry can be processed according to the facility's schedule. That can be especially important for businesses where clean items are needed throughout the day.
An on-premise laundry can also allow businesses to respond more quickly to unexpected needs. For example, a hotel may suddenly need additional towels, or a senior living facility may have an unexpected increase in laundry volume. Having equipment on-site provides flexibility.
Can an On-Premise Laundry Save Labor?
It depends on the operation. An OPL requires employees to handle laundry, but modern commercial laundry equipment can automate or simplify many parts of the process.
Equipment with programmable controls, appropriate cycle options, and efficient operation can help employees process large quantities of laundry without treating the task as a completely manual process.
The key is to calculate the actual labor required rather than assuming either option will automatically be cheaper.
What About Laundry Quality?
Quality control is another consideration. When laundry is outsourced, a business has less direct control over how items are washed, dried, sorted, and handled.
With an on-premise laundry, the business controls:
- Wash Cycles
- Water Temperatures
- Detergent
- Drying
- Sorting
- Folding
- Handling
That can be particularly valuable for businesses with specialized laundry requirements.
Healthcare facilities, senior living communities, restaurants, and other operations may have specific procedures for handling linens, uniforms, towels, or other washable materials.
What If Your Business Has Limited Space?
Limited space can make outsourcing attractive. A business may not have enough room for commercial washers, dryers, folding areas, storage, and the required utility infrastructure. However, limited space doesn't automatically rule out an on-premise laundry.
Commercial equipment comes in a variety of sizes and capacities, so it's possible to design a laundry operation around the available space. The important thing is to evaluate the facility before choosing equipment.
How Much Laundry Does Your Business Generate?
Volume should be one of the first things you calculate.
Start by determining:
- How Many Pounds Of Laundry Are Processed Each Day?
- How Many Days Per Week Is Laundry Needed?
- How Much Laundry Is Generated During Peak Periods?
- How Much Time Do Employees Spend Handling Laundry?
- How Much Does Outsourcing Currently Cost?
Once you have those numbers, you can make a much more meaningful comparison.
A small business generating a modest amount of laundry may find outsourcing practical. A large facility processing hundreds or thousands of pounds each week may find that an OPL provides greater long-term value.
What About Equipment Maintenance?
Maintenance is an important part of the in-house calculation. Commercial laundry equipment needs regular attention to keep it operating reliably. Preventative maintenance can help identify potential problems before they turn into larger equipment failures, while prompt repairs can help limit downtime.
Businesses considering an OPL should include maintenance in their annual operating budget. That doesn't necessarily make an in-house laundry a bad investment. It simply means the full cost needs to be considered.
How Do You Decide Between Outsourcing and an OPL?
There isn't a universal answer. Instead, compare the two options based on your business.
Ask:
How much laundry do we process?
How quickly do we need clean items available?
How much are we currently spending on a commercial laundry service?
Do we have space for laundry equipment?
How much labor would an OPL require?
Would having laundry on-site improve our operations?
What would equipment, utilities, maintenance, and installation cost?
The answers will help determine which approach makes more sense.
Could a Hybrid Approach Work?
It doesn't always have to be one or the other. Some businesses may benefit from a combination of in-house and outsourced laundry. For example, a facility might process everyday towels and linens on-site while outsourcing specialized items or handling unusually high-volume periods through an outside provider.
A hybrid approach can provide flexibility without requiring a business to build its entire laundry operation around one solution.
Talk With a Commercial Laundry Equipment Professional
If you're comparing a commercial laundry service with an on-premise laundry, getting accurate numbers is important. T&L Equipment Sales works with businesses throughout North Carolina and South Carolina to help them evaluate commercial laundry equipment and determine what type of laundry setup makes sense for their operation.
Explore commercial laundry equipment and OPL solutions from T&L Equipment Sales.
Whether you ultimately choose to outsource, bring laundry in-house, or use a combination of the two, the best decision is the one that fits your volume, space, staffing, budget, and operational needs.
