Why are CFOs in the gaming and hospitality industries giving a single thought to the laundry business? Because the cost of keeping linens clean can significantly affect a property’s profitability. And, high-tech UHF-RFID laundry automation can give a healthy boost to the bottom line. Running the numbers in the following example offers a dollars-and-cents explanation.

Safeguarding a six-figure investment from five-figure losses
Casino Property A is a 400-room, high-end, full-service gaming property with an inventory of 40,000 linens valued at approximately $500,000. This includes items such as towels, sheets, and table cloths for guest rooms, outlets, and catering facilities. The property also maintains a $150,000 inventory of 5,000 uniforms for several hundred employees.

Because linens and uniforms are continuously reused, a significant percentage of the property’s inventory is cleaned every day. The business uses an outside laundry service, as do most similar properties, to clean about 8,500 items each day at an annual cleaning cost of approximating $1,000,000. Billing errors of only one or two percent can result in overcharges of $10,000-$20,000 a year.

The property distributes $150,000 worth of linens and uniforms seven days a week: $35,000 in uniforms go to employees; $15,000 in uniforms and $100,000 in linens go to the laundry service. The huge volume of laundry items creates loss rates that frequently surpass 10 percent, which adds up to $75,000 annually. This is considerably greater than any hotel can justify as “normal shrinkage.”

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