| HOTEL
AND MOTEL LAUNDRY COST FACTORS
By Rich Fitzmorris
Like many companies that are dependent on travelers, The hotel and motel
industry has taken a hit. Owners and managers have had to review all
areas of expenses and cost, including their linen service. In the case
of properties that have on-premise laundries, the laundry department
has had to look at saving money with variable costs.
What are the factors associated to the laundry? How can a manager improve
on his or her operation? The percentages associated with laundry cost
are important to know when trying to evaluate cost. All costs are important,
but some are bigger than others. Here are some accepted ranges for laundry
cost: Labor 35-55 percent, Linen Replacement 15-25 percent, Energy 10-15
percent, Chemicals 5-10 percent, Indirect 5-20 percent.
Labor:
Cost of wages and benefits to employees A manager should review procedures
and training in order to optimize the output per employee, commonly
referred to as pounds per operator hour. Knowing the productivity of
employees, and what it should be for the type of laundry and equipment
in use is critical to controlling labor cost.
Linen Replacement:
Cost of replacing linens to a pre-determined par-stock A manger should
evaluate the quality and life of linens. This can include theft, normal
wear, and intensity of wash formulas, rejects, and overall handling
procedures by housekeeping personnel, as well as the laundry staff.
Buying the right quality and controlling its use can be beneficial to
reducing replacement cost.
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Rich Fitzmorris is Vice President
for the Laundry Division of Sunburst Chemicals.
He has been with Sunburst for more than 25 years and can be contacted
directly via email at directly via email
at:
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Energy:
Cost of water, sewer, electricity, and gas A manager can evaluate equipment
efficiency in wash formulas - full loads, proper temperatures, and cycle
times - and see that all are balanced to deliver high quality with a
low rewash percentage. Properly utilizing dryers with full loads, correct
temperatures and times helps control finishing costs. This is a variable
cost that is often overlooked, but is a real cost that should be analyzed
closely.
Chemical:
Cost of all supplies used to clean linens A manager should review all
options to take advantage of technology that can deliver the benefits
of controlling cost in the above areas as well as the chemistry itself.
The chemistry used can dramatically affect other variable cost, so close
scrutiny is well advised.
Indirect:
Cost of maintenance, depreciation, equipment, and laundry floor space
A manager may be able to help control maintenance by maximizing equipment
efficiency and using preventive maintenance. Reducing total hours of
operation can reduce cost associated with room and space by cutting
lighting, heating, or air conditioning cost, etc.
Conclusion
By reviewing present conditions and evaluating the opportunities for
improvement, a good manager can help the hotel/motel increase profits
by wisely cutting cost that may have been overlooked.
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of Laundry Today, please email us at question@laundrytoday.com.
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