Focus on growing your hotel,
not your laundry room.

Streamline your operations. Increase your cash flow. Ensure pristine linens in every room - give your customers the first-class experience they crave.

No high-pressure sales gimmicks. Just two business owners crunching numbers.

What is the true cost of on-premise laundry?

Would you be surprised if we told you that most hotel managers/owners are unable to accurately measure the cost of having on-premise laundry?

The average total annual cost on-premise laundry for a 100 room hotel/motel is between CAD $161,500 and $241,000 per year before considering the cost of real estate itself.

Initial capital outlay for the same size operation averages a whopping $165,000 to $210,000.

We can help you determine exactly the cost of your on-premise laundry with a free cost analysis so that you can make an informed business decision about whether outsourcing is the right choice for your hotel.

Outsourcing your hotel laundry reduces fixed costs.

Laundry equipment is expensive. Real estate is precious.

Covering the enormous capital expenditures of industrial laundry equipment as well as the increased insurance premiums required may be okay in peak season but during off peak times cash flow quickly becomes a serious problem for any hotel. 

Laundry service providers are able to share the recovery of these capital expenditures across many hotels and other commercial clients through economies of scale. These savings are passed along to hotel clients thereby freeing up cash flow for your company and increasing your bottom line.

Expand your business.

Laundry is one of the most critical elements in hotel operations.

By working with the right laundry service provider you are able to use the freed up cash flow and reduced labour requirements to expand or purchase new hotels.

Consequently this will also make your business more attractive to investors.

Linen is important to your guests

Hotelier Magazine highlights that research into the mindsight of hotel guests shows that 99% of customers responded that providing good quality towels and bed linen is important. 97% admitted that they do inspect the cleanliness and quality of the items. 

Research shows that an overwhelming 96% of respondents are less likely to return to the hotel if the bed linens and towels are not sufficiently cleaned or of low quality. 95% of those same respondents stated that they would tell others about their poor experience.

Save BIG on utilities.

Do you live in Ontario?

We probably don't have to say any more...

All jokes aside, under-trained staff almost always operate machinery in the least efficient manner which results in exorbitant wastes of water, gas and electricity.

Outsourcing laundry for a 100 room hotel/motel will save you CAD $35,000 to $40,000 per year in utility costs alone!

Focus on what matters.

It is no secret that running a hotel is like a juggling act.

There are so many tasks to focus on that you can easily find yourself and your staff becoming overwhelmed. 

The real risk here is that it can take away your attention from focusing on what matters the most - customer satisfaction.

By working with a trusted laundry service provider like Chipman Laundry you can spend more time motivating your team to provide outstanding customer service.

Improve room quality.

Let's face it. Laundry is dirty business... literally.

The task itself is monotonous and as such it is difficult to motivate and retain on-premise laundry staff.

Beyond this, specialized training and experience is required to ensure that your linens are always pristine. This is not always a feat that can be realized, especially in a smaller city with a limited workforce and talent pool.

Outsourcing allows you to leverage a professional team that will guarantee the pristine linens that your customers expect from the moment they acquire their room key until the day they check out.

Accurate forecasting.

By outsourcing you are able to accurately forecast and budget ahead thanks to the pay-as-you-go nature of outsourcing.

Think about it this way, outsourcing allows your hotel to pay for any of the costs associated with laundry when you make a sale.

Knowing this cost as a percentage of your gross revenue allows you to streamline business operations and become more flexible to change.


Our customers rely on our hotel laundry service for the smooth operation of their business.

Barb crowley - laclu landing resort

A pleasure dealing with such friendly, knowledgeable staff. Laundry is always ready when promised.
Great service! Highly recommend!

Positive: Professionalism, Punctuality, Quality, Responsiveness, Value

This is how we stack up to the rest.







service

US

Our competitors

Ultra fast same day or next delivery

Deal directly with owner

24/7 emergency service

Scale operations to facilitate your expansions

Wholesale deals for resale of laundry service to guests

Sophisticated digital order tracking preventing lost or missing linens

Customized folding requirements

45+ years as laundry service provider

Linen and uniform rentals

Linen and uniform distributor

Linens processed locally

How It Works

We offer two different options when outsourcing your hotel laundry. Either you come to us with your linen supply on hand or you can rent your linens for a very reasonable rate.

Rental Program

Our rental program allows you to avoid the capital outlay required when outfitting your hotel with new linens for your rooms and restaurant. This allows you to free up cash flow that can be used for revenue generating purposes such as marketing, expansion, remodeling and more.

We purchase 3 sets of linens for each room. This amount allows us to be efficient and economical for your hotel at the same time preventing any inventory shortages. We use the 3 sets of hotel linens as follows:

  • 1 set in the room
  • 1 set on the shelf
  • 1 set at our plant being laundered

Just Laundry

This option is for those who already own or plan on acquiring their own linen supply for your hotel rooms. We handle the the laundry only for your hotel rooms and restaurant.

Example Pricing

Pricing will vary widely based on the choice of linens. This is an example of an average 12 bedroom hotel (70-75% occupancy rate) that has 3 changes per week.

Rental Program - $402/week

Just Laundry - $387/week

Isn't on-premise cheaper?

Add Icon

No. At least, that is the case with almost every cost analysis we have done to date.

We are confident that once you crunch the numbers on the real costs that go into an on-premise laundry facility that you will understand why outsourcing is a preferred method to free up some serious cashflow, boost your bottom line and streamline your operations. 

We will take the scenario of a small 12 bedroom hotel that requires 3 changes per week per room.

In this instance the minimum viable laundry facility would be a 500 square foot dedicated area with 2 x 60lbs commercial washers and 2 x 50lbs stack dryer (4 total dryers). 

There are a number of special requirements for your laundry facility outside of the usual construction costs such as specialized concrete/steel work and light industrial mechanical and electrical.

You will require a part-time laundry attendant who will work no less than 5 hours three time a week to keep up with these laundry duties. We will assume that you pay at least $15/hr wages (good luck finding competent help at that wage!) and the staff is expertly trained to operate the machinery in the most efficient manner possible and capable of processing more than 30lbs/hour of laundry.

Most of your capital expenditures will be recovered over a period of 10 years. Personally I would shoot for 7 years on the laundry equipment but I know that most hotel owners run their machines a little longer than a cleaning company to avoid the crushing financial blow of replacement. 

The tables below will illustrate reasonable fixed and variable costs under the assumption that you were able to build your laundry facility with cash taking on no interest expense.

TOTAL FIXED COSTS - $32,956.66/yr

Fixed Cost

Outlay

term (years)

total annual cost

Labour (3 x 5 hour shifts per week)

$14,040.00

1

$14,040.00

Pro-rated cost to carry real estate ($10/sqft)

$5,000.00

1

$5,000.00

Pro-rated cost of property taxes ($3.50/sqft)

$1,750.00

1

$1,750.00

Insurance for laundry facility

$2,500.00

1

$2,500.00

Capital recovery on laundry equipment

$50,000.00

10

$5,000.00

Capital recovery boiler/water heater

$10,000.00

10

$1,000.00

Capital recovery on laundry facility renovations

$25,000.00

10

$2,500.00

Capital recovery on specialized mechanical/electrical

$17,500.00

15

$1,1166.66

TOTAL VARIABLE COSTS - $3,077.00/yr

Variable Cost

Cost per use

Uses per week

Weeks Per Year

total annual cost

Chemicals

3.00

6

52

$936.00

Washing Machine Utility Consumption

3.00

6

52

$936.00

Dryer Machine Utility Consumption

1.25

6

52

$780.00

Equipment Repairs (Assuming $1,250.00 total over 10 years)

$1,250.00

-

-

$125.00

Boiler Repairs/Inspection (Assuming $3,000.00 total over 10 years)

$3,000.00

-

-

$300.00

ON-PREMISE LAUNDRY WILL COSTS YOU $36,033.66 PER YEAR!

I want you to really think about these numbers for a moment.....

That's $15,909.00 SAVED PER YEAR when you outsource the same linens at the same frequency.

That's $102,500.00 LESS in immediate capital outlay to build/renovate your facility.

That's $25,500 EARNED PER YEAR if that same 500 square feet was a room rented at $100/night @ 70% occupancy rate.

You could actually realize a total of $41,409.00 TO YOUR BOTTOM LINE when partnering with a laundry service like ours.

This is all based on a miniature scale of just 12 rooms.

Let me tell you that the economies of scale of outsourcing laundry are fantastic! 

The larger your facility, the greater the savings, the greater the return.

How can you do it for less?

Economies of scale.

Unlike your on-premise laundry facility our laundry facility is used constantly thanks to our many commercial and retail customers making the cost of use for our equipment and facility a fraction of the cost of on-premise laundry at your hotel.

One of the distinct disadvantages of on-premise laundry is that you are stuck paying wages while your laundry is being washed and dried. There is no way around it and truthfully splitting duties between laundry attendant and housekeeping isn't realistic as it will only cause you to fall behind on laundry thereby increasing your overall cost of laundry.

Because we have so much laundry on the go we don't have that problem. Our laundry experts can be sorting, spot cleaning and folding while all the washers and dryers are running making our operation very efficient comparatively which allows us to offer very attractive pricing to you while still turning a healthy profit for our business.

It's a Win-Win situation!


It's our experience in hospitality.

For over 45 years Chipman Laundry has been the trusted laundry service provider for 5-star lodges and resorts in Northwestern Ontario specifically in Kenora and the surrounding area. We are proud to also add to the list a number of smaller outposts, motels and now even bed & breakfasts all of whom continue to entrust us with one of the most critical operational tasks. As they focus on scaling their businesses they know that Chipman Laundry is their trusted partner when outsourcing their hotel laundry.


Big or small, we can help streamline your operations and free up serious cash flow.


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