Is it cheaper to buy linen or should I hire it from a laundry?

Q: Without knowing the costs you have been quoted, it is difficult to say.

Although the laundry from which you hire has to cover costs in buying and holding stock and make a profit, it can almost certainly purchase linen at better prices than an individual restaurant can, given the volume it buys annually.

In addition, it knows that by hiring out the linen it is assured of a fixed income from the wash-and-hire contract. This benefit often means that it can price competitively.

Laundries offer a range of white damask table linen, and coloured ranges to suit individual requirements. However, if you opt to hire your linen, it is still important to control stock even though it is not yours. Some laundries reserve the right to charge for lost items and those requiring replacement.

Purchasing your linen will impact on your working capital, which you may need for other expenditure. In addition, you will still need to pay to have the items laundered.

Obtain three quotations from laundries for washing your own linen. Add to this the cost of capital tied up in stock and the cost of replacements, and compare this with the cost of wash and hire over the contract period.