Commercial Laundry and Linen Rental Service
Magna Cleaners is a family owned and operated commercial laundry service. We have over 100 years of combined experience in the textile industry. This knowledge allows us to provide a superior service for our customers. We pride ourselves on understanding our client’s needs and delivering beyond their expectations. Our management team is consistently challenging ourselves to stay ahead of current laundry trends while also giving our customers a competitive edge.
1041 N Quebec St
Allentown Pa, 18109
Services We Offer
- Assisted Living
- Linen Rental
- 24-Hour Emergency Service
Outsourcing the laundry allows properties to focus on their core business and at the same time, reduce costs, replace a fixed-cost operating structure with a variable cost model (“Pay as you go”) incurring in laundry cost only for occupied rooms and therefore, matching expenses to revenue and eliminate need to spend capital in tooling the laundry room.
1. Cost Reduction
Laundries are expensive to operate and most of them do not have the volume to purchase highly efficient equipment nor do they have the room for support equipment such as water and energy recapturing equipment
If you consider that a typical 400 room hotel with an average of eleven pounds of linen per room, running 65% occupancy would have to process an average 1,043,000 pounds of linen per year, then, the resources needed are significant.
Outsourcing the laundry would help eliminate many of the necessary costs to run and OPL. In some cases, these costs are difficult to identify, as they are part of the hotel’s cost structure and are not easily associated with the laundry process itself. These costs would include:
a. Water: A large central commercial hospitality laundry processing a million pounds per week using today’s modern tunnel based wash isle and recycled water systems uses about 0.25 gallons of water per pound. This usage is based upon recycling 75% of the fresh water requirement of 1 gallon per pound on light soiled linen. As a result, a hospitality laundry processor uses 250,000 gallons of water per week.
On the other hand, if the 1,000,000 pounds of hospitality linen were to be processed in a hotel OPL, 2,500,000 gallons of water would be required (assuming the work load is processed in conventional machines using 2.5 gallons per pound). That is 10 times the volume of water alone to do the exact same work. Thus outsourcing of commercial laundry is very sustainable in regards to water conservation.
You can take this math one step further and look at the cost implication of operating an OPL using 2.5 gallons per pound processing say 1,000,000 pound per year with $10.00/ 1000 gallon water cost. The OPL is going to spend $25,000 on water per year to process the 1,000,000 pounds where the new Linen Supply plant is going to spend $2,500 to process the same 1,000,000 pounds. Even is the new Linen supplier did not implement water recycling in its new operation the water cost would be $10,000 annually vs. the $25,000 spent by the OPL [assuming 1 gallon per pound in the tunnel plant operating without a recycled water system] The water cost difference in these two laundries if the outsource laundry has a recycle program is $2.25 per 100 weight.
b. Fuel: Over the last few years bench marks have clearly been established for commercial laundries regarding fuel usage per unit. Fuel being measure in therms per in 100 lbs of clean linen. Most well run operations with heat recovery system in place, and working, or water recycling systems in place recycling at least 65% of the water the fuel usage is less than 2.2 therms per 100 weight. Many commercial operations are now reporting less that 2 therms per 100 weight on a regular basis and some are in fact demanding plants monitor and report therms per 100 weight and establish budgets reflecting therms per 100 weight be in the 1.75 range depending on location.
OPLs typically do not measure fuel consumption because they either operate the laundry on a central steam system or natural gas supply that is not separately metered for the laundry. Because most on premise laundries are designed and installed without energy and water recovery systems their gas consumption runs in the 4 to 5 therms per 100 weight range. Going back the 1,000,000 pound OPL example and assuming $1.00 per therm natural gas cost the OPL is going to spend $45,000 on natural gas associated with laundry where the Linen Supply central laundry is going to spend $20,000 to process the same 1,000,000 pound account or a difference of $25,000 annually. Here the cost difference has the potential of $2.50 per 100 weight.
c. Electricity: A conventional wash isle of washer extractors is going to use about 15 KWH per 100 weight where the Linen Suppler with modern equipment is going to use about half that or 7.5 KWH per 100 weight. Again using the 1,000,000 pound account example the Linen suppliers electrical cost are going to be $6,000 versus $12,000 for the OPL assuming and average of 8 cents per KWH. That’s a difference of $1.20 per 100 weight VS $.60 per 100 weight or a difference of $.60 per 100 weight.
d. Labor: There are certain costs associated with OPL that cannot be avoided regardless of occupancy levels. The biggest cost factors are the pounds per operator hour. For the sake of this exercise we will use a total hourly labor cost of $15.00 and again go back to the 1,000,000 pound annual poundage OPL. A typical OPL laundry using conventional equipment operates at labor efficiency in the 50 to 65 pounds per operator hour range where the Linen Supplier normally will operate in the 100 pounds per operator range. That’s an annual labor cost difference of over $80,000 per year on labor alone or $23.00 per 100 weight VS $15.000 per 100 weight.
e. Other hidden cost of an OPL laundry: Factors such as the continual “short loading of machines” and the inability to use modern day material handling systems, soil sort systems and inventory control systems add to OPL inefficiencies driving costs well above the perceived costs of operating the OPL.
Finally, when assessing the actual cost to run a laundry, please consider the following:
• Management payroll
• Maintenance, repair and equipment replacement
• Taxes, Licenses & permits.
• Space utilization: Can the OPL space be turned into a revenue producer instead of a cost? Spa, Workout room, etc.
2. “Pay as you Go” Model:
The other win with outsourcing laundry is that it is in essence a “pay as you go” program. Outsourcing laundry replaced an internal laundry fixed price cost with a variable cost where there is only a cost per occupied room and thus cost per occupied room is fixed, reducing expenditures and controlling budgets. With this system, you can match the laundry expense to the revenue of selling the room. This is particularly important during low occupancy periods.
3. No Capital expenditure:
By outsourcing, hotels will eliminate the capital expense necessary to buy the equipment to run the laundry. As a result, they can use this scarce resource in revenue generating investments.