A Better Way to Measure the Impact of Laundry
By Joseph Ricci President & CEO, TRSA | March 01, 2015
"If you don't measure it, you don't manage it."
"If you don't manage it, you can't change it."
No one is more aware of the wisdom of these adages than hotel operators, who measure many expenses on a cost per occupied room night basis. Yet this is generally not the case for their hotel owned or on-premise (OPL) laundry costs.
Shouldn't it be? Improved laundry practices can reduce a hotel's carbon foot-print and boost the bottom line, important objectives amid intensifying sustainability mandates.
When explaining why they do not fully assess laundry expenses, hotel managers may characterize them as an uncontrollable or relatively minor cost of doing business. If pressed to quantify, cost per pound of linen processed is calculated as the primary metric, as many commercial laundries use the cost per pound approach when working with or pricing hotel linen, whether the linen is owned by the hotel or "rent-ed" from the commercial laundry.
But the analysis rarely results in an apples-to-apples comparison for deciding whether to outsource. Neither the true cost of laundering is portrayed accurately nor is the number of pounds produced calculated properly. Avoiding these pitfalls is essential to determining the true financial impact of the hotel owned laundry.