Commercial Laundry vs. In-House Laundry: Which Is Better for Your Business?

If your business goes through a lot of towels, linens, uniforms, sheets, or other washable items, you have probably asked yourself an important question:

Should we continue doing our laundry in-house, or should we outsource it to a commercial laundry service?

For many businesses, doing laundry themselves seems like the less expensive option. There is no separate laundry service bill, and you may already have access to washers and dryers. But the true cost of in-house laundry goes far beyond detergent and utility bills.

Employees have to sort, wash, dry, fold, and put away the laundry. Equipment requires maintenance. Machines eventually need to be replaced. Water, electricity, gas, detergent, and other supplies add up.

Commercial laundry services can eliminate much of that work and allow your employees to focus on what they were hired to do.

For businesses in St. Petersburg and the surrounding Tampa Bay area, outsourcing laundry may be worth considering if laundry is taking valuable time away from your operation.

Let's compare the two approaches.

What Is In-House Laundry?

In-house laundry means your business handles the entire laundry process internally.

Depending on your business, that might involve:

• Purchasing commercial or residential-grade washers and dryers
• Installing plumbing and electrical connections
• Purchasing detergent and laundry supplies
• Paying water, sewer, gas, and electricity costs
• Assigning employees to laundry duties
• Sorting dirty laundry
• Washing and drying items
• Folding or hanging clean laundry
• Maintaining the equipment
• Repairing or replacing machines
• Storing clean and dirty laundry

Restaurants, salons, spas, gyms, medical offices, vacation rentals, hotels, and other businesses may all have laundry responsibilities.

At first glance, handling laundry internally can appear to be the most economical choice.

But there's more to the calculation.

What Is Commercial Laundry Service?

Commercial laundry service allows a business to outsource some or all of its laundry responsibilities.

Instead of your employees spending time washing and drying laundry, the laundry is handled by a professional laundry provider.

Depending on the service, the process may include:

1. Collecting or receiving your dirty laundry
2. Sorting the items
3. Washing the laundry
4. Drying the laundry
5. Folding or packaging the items
6. Returning the clean laundry to your business

Some providers also offer pickup and delivery, making the process even more convenient.

The biggest advantage is simple:

Your employees don't have to do the laundry.

The True Cost of In-House Laundry

The biggest mistake businesses make when comparing laundry options is looking only at the cost of detergent and utilities.

Those are just part of the equation.

Consider everything involved in operating an in-house laundry operation.

Labor

Someone has to do the work.

An employee may spend several hours each week sorting, washing, transferring, drying, folding, and storing laundry.

Even if laundry is only part of their job, those hours have a real cost.

For example, imagine an employee spends 10 hours per week handling laundry.

At $18 per hour, that's approximately:

$180 per week

or roughly:

$9,360 per year

And that's before payroll taxes and other employment costs.

Now consider what that employee could be doing instead.

They could be serving customers, preparing rooms, assisting guests, cleaning work areas, handling administrative tasks, or performing other revenue-producing responsibilities.

Utilities

Laundry consumes significant amounts of water, electricity, and/or natural gas.

Depending on the equipment and volume, utility expenses can become substantial.

Businesses should consider:

• Water
• Sewer
• Electricity
• Natural gas
• Heating water
• Dryer operation

Utility costs can fluctuate, making laundry expenses difficult to predict.

Detergent and Supplies

Laundry also requires supplies.

• Detergent
• Fabric softener
• Stain removers
• Bleach
• Laundry bags
• Labels
• Hangers
• Folding supplies
• Other cleaning products

Individually, these costs may seem small. Over hundreds or thousands of pounds of laundry, they add up.

Equipment

Commercial laundry equipment isn't inexpensive.

Businesses may need to purchase:

• Washers
• Dryers
• Laundry carts
• Folding tables
• Storage equipment
• Water heating equipment
• Ventilation equipment

Eventually, equipment needs maintenance and replacement.

A broken washer or dryer can also interrupt your operation and create a backlog of laundry.

Commercial Laundry vs. In-House Laundry: Side-by-Side Cost Comparison

Before deciding which option is better for your business, it helps to look at the costs side by side.

Example Cost Comparison

Consider a business processing approximately 100 pounds of laundry per week.

The following is an illustrative example only. Actual costs will vary depending on local utility rates, employee wages, equipment, laundry volume, and commercial laundry pricing.

Again, these numbers are examples designed to demonstrate how the total cost should be calculated. They are not Sum Beach Laundry's commercial laundry pricing.

Your actual numbers may be higher or lower.

The Hidden Cost: Employee Time

For many businesses, labor is the largest hidden cost of in-house laundry.

Imagine a salon with employees who spend part of each day washing towels.

Those employees aren't simply "doing laundry."

The business is paying their wages while they perform a task that could potentially be outsourced.

The same applies to a restaurant employee washing kitchen towels, a gym employee washing workout towels, or a property manager handling linens for vacation rentals.

The question isn't simply:

"How much does it cost to wash this laundry?"

A better question is:

"What does it cost our business to have employees doing laundry?"

That change in perspective can significantly alter the calculation.

Commercial Laundry Can Free Up Your Employees

One of the biggest benefits of outsourcing laundry is getting employee time back.

Instead of spending hours handling laundry, your staff can focus on the core business.

For a restaurant, that could mean more time serving customers.

For a salon or spa, it could mean more time with clients.

For a gym, it could mean better member service.

For a vacation rental business, it could mean more time managing properties and reservations.

Your employees are one of your most valuable resources.

Using their time efficiently matters.

Commercial Laundry Provides Consistency

Another advantage of professional laundry service is consistency.

A business may have multiple employees responsible for laundry.

One person may use too much detergent. Another may overload the washer. Someone else may forget about a load sitting in the machine. Another employee may not dry towels completely.

Over time, inconsistent laundry practices can lead to problems with odors, stains, fabric wear, and overall cleanliness.

A professional laundry service can establish consistent processes for washing, drying, folding, and handling your laundry.

What About Laundry Equipment Maintenance?

Equipment maintenance is another consideration.

Washers and dryers require regular care and eventually need repairs.

A business operating its own laundry equipment has to deal with:

• Equipment breakdowns
• Service calls
• Replacement parts
• Preventative maintenance
• Downtime
• Equipment replacement

When a machine breaks down, the laundry doesn't stop.

Someone still has to clean those towels, sheets, uniforms, or linens.

That can mean sending laundry to another facility temporarily or purchasing additional equipment.

Outsourcing reduces the burden of maintaining your own laundry operation.

Commercial Laundry Can Help With Growing Businesses

In-house laundry may work when a business has relatively little laundry.

But what happens when your business grows?

More customers can mean more towels, more linens, more uniforms, and more laundry.

Eventually, the business may need additional machines, additional employees, or additional laundry space.

Outsourcing allows you to increase laundry capacity without necessarily expanding your own laundry room.

That's particularly useful for businesses experiencing seasonal demand.

Which Businesses Can Benefit From Commercial Laundry?

Almost any business that regularly generates laundry may benefit from outsourcing.

Restaurants

Restaurants may need to wash:

• Kitchen towels
• Bar towels
• Aprons
• Uniforms
• Cleaning cloths
• Table linens

Salons and Spas

Salons and spas can generate large amounts of towels and linens every day.

Keeping up with laundry can become a significant operational task.

Gyms and Fitness Centers

Fitness businesses may use towels for members, employees, equipment cleaning, and other purposes.

The more members you have, the more laundry you may generate.

Vacation Rentals

Airbnb and vacation rental operators need clean sheets, towels, pillowcases, and other linens between guests.

Fast turnover can create a significant laundry workload.

Medical and Professional Offices

Some offices use washable towels, uniforms, gowns, or other textile products that require regular cleaning.

Daycare and Childcare Centers

Childcare facilities may have bedding, towels, blankets, cleaning cloths, and other washable items.

When Does In-House Laundry Make Sense?

Commercial laundry isn't automatically the right choice for every business.

In-house laundry may make sense if:

• You generate very little laundry.
• You already have appropriate equipment.
• Employees have sufficient downtime to handle laundry.
• Utility costs are low.
• Laundry doesn't interfere with normal operations.
• Your equipment is reliable.
• You have adequate laundry space.

The important thing is to calculate the real cost rather than assuming in-house laundry is free.

When Should You Consider Outsourcing?

Commercial laundry becomes more attractive when:

• Laundry volume is increasing.
• Employees spend significant time doing laundry.
• Your equipment frequently breaks down.
• You need more laundry capacity.
• Laundry is interfering with customer service.
• You have limited laundry space.
• You need consistent turnaround.
• You are opening additional locations.
• You want to reduce operational complexity.

If laundry is becoming a problem instead of simply another task, it's probably time to evaluate your options.

A Simple Way to Compare the Costs

Before deciding, calculate your actual weekly laundry cost.

Add together:

Employee labor + utilities + detergent and supplies + equipment maintenance + equipment depreciation + laundry-related space

Then compare that number with the cost of outsourcing.

Don't forget to account for the value of employee time.

For example, if your staff spends 15 hours per week doing laundry, those 15 hours have a cost even if laundry isn't listed as a separate expense on your income statement.

You should also consider the potential revenue your employees could generate if they weren't doing laundry.

Commercial Laundry Isn't Just About Saving Money

It's tempting to look at commercial laundry strictly as a cost-saving decision.

But outsourcing can provide other benefits.

Save time.

Employees spend less time on laundry.

Improve consistency.

Laundry is handled according to a defined process.

Reduce equipment headaches.

You don't have to maintain a room full of washers and dryers.

Increase capacity.

You can handle more laundry as your business grows.

Focus on customers.

Employees can spend more time doing what directly supports your business.

Commercial Laundry vs. In-House Laundry: The Bottom Line

There isn't one answer that works for every business.

In-house laundry gives you direct control and may make sense for businesses with low laundry volumes and sufficient staff and equipment.

But as laundry volume increases, the hidden costs can become significant.

Employee labor, utilities, detergent, equipment maintenance, repairs, replacement costs, and lost productivity all contribute to the true cost of doing laundry yourself.

Commercial laundry can turn laundry from an ongoing operational headache into a predictable business expense.

For many businesses, that's worth considering.

Let Sum Beach Laundry Handle Your Business Laundry

If your St. Petersburg-area business is spending too much time and money handling laundry in-house, Sum Beach Laundry can help.

Our Wash-Dry-Fold service is designed for businesses that need dependable laundry service without the hassle of managing their own laundry operation.

We can help businesses such as restaurants, salons, spas, gyms, vacation rental operators, offices, and other organizations that regularly deal with laundry.

Instead of asking an employee to spend hours washing, drying, and folding, let your staff focus on your customers and your business.

Less laundry work. More time for your business.

Contact Sum Beach Laundry to discuss your commercial laundry needs and determine whether outsourcing your laundry makes sense for your operation.

Sum Beach Laundry — St. Petersburg, Florida.