In-House vs Outsourced Cleaning: A Simple ROI Model

Why GMs Struggle with Cleaning Decisions?

General Managers (GMs) are under constant pressure to balance budgets, maintain hygiene standards, and protect their brand reputation. One key decision often overlooked is whether to run cleaning in-house or outsource it. On the surface, keeping cleaning staff in-house looks cheaper. But once you apply a return on investment (ROI) lens, the real costs tell a different story.

This guide gives GMs a simple ROI model to compare in-house cleaning with outsourcing, helping you make smarter, data-driven decisions.

The True Cost of In-House Cleaning

Salaries, Benefits, and Overtime

In-house cleaners aren’t just paid by the hour. Employers cover holiday pay, pensions, sick leave, and national insurance contributions. When staff call in sick, overtime or agency staff push costs up even further.

Training, Supervision, and Compliance

Keeping in-house staff compliant with COSHH, HACCP, and EHO expectations requires ongoing training. Managers or supervisors must spend time monitoring performance and maintaining documentation.

Hidden Costs: Supplies, Equipment, and Admin Time

Vacuum repairs, mop replacements, detergent orders, payroll processing, HR administration—these indirect costs often go unrecorded but eat into margins.

💡 In short: In-house costs extend far beyond the payslip.

The Outsourced Cleaning Model

Transparent Pricing Structures

Outsourced providers usually offer fixed hourly rates or contract pricing, making costs predictable. No need to budget for sick leave or equipment breakdowns—the contractor covers it.

Specialist Expertise and Compliance Advantages

Professional cleaning companies bring EHO-style audits, hygiene swab testing, and documented compliance that in-house teams rarely achieve consistently.

Scalability and Flexibility

Whether it’s seasonal peaks, deep cleans, or emergency cover, outsourced teams can scale quickly without recruitment headaches.

ROI Framework for GMs: In-House vs Outsourced

Here’s a 4-step ROI framework any GM can use:

Step 1: Calculate All Direct Costs

Start with salaries, pensions, NI, sick pay, and holiday cover for cleaners.

Step 2: Add Indirect/Hidden Costs

Include training, compliance admin, consumables, equipment, and management supervision time.

Step 3: Compare with Outsourced Contract Pricing

Take the total from Step 2 and compare it to a provider’s all-inclusive monthly contract.

Step 4: Factor in Risk and Compliance Savings

Outsourced partners reduce EHO inspection risks, FHRS downgrades, and reputational damage—these savings are hard to quantify but extremely valuable.

Case Study: Hospitality Venue in Exeter

In-House Costs vs Outsourced Costs

• In-house team (3 staff, 40 hrs/week each): ~£70,000 per year including salaries, benefits, supplies, and admin overheads.

• Outsourced contract equivalent: ~£55,000 per year with predictable monthly billing.

ROI Impact on Hygiene Ratings and Customer Reviews

By outsourcing, the venue saved ~£15,000 annually while boosting hygiene standards. Their FHRS rating improved from 4 to 5, leading to stronger customer confidence and positive online reviews.

Common Myths About Outsourced Cleaning

“It’s Always More Expensive”

When you factor in hidden costs and risk, outsourcing is often cheaper.

“We’ll Lose Control Over Quality”

Outsourced providers offer audits, KPIs, and clear SLAs—in many cases, quality control is tighter than with in-house teams.

“Our Staff Can Do It Just as Well”

Professional cleaners bring specialist training and commercial-grade tools that outperform ad hoc staff cleaning.

Strategic Benefits for General Managers

Time Freed for Core Operations

Less time spent managing cleaners means more focus on customer service, staff development, and revenue growth.

Consistent Hygiene Standards

Providers like Black Belt Cleaning Co. deliver ATP swab testing, EHO-style walkthroughs, and same-day reports, ensuring standards never slip.

Better FHRS Outcomes

Improved food hygiene ratings not only reduce compliance risk but also directly attract more customers.

FAQs on In-House vs Outsourced Cleaning

Q1: What’s the biggest hidden cost of in-house cleaning?
Training, compliance admin, and covering sick leave.

Q2: Is outsourcing suitable for small venues?
Yes—many providers offer flexible packages for cafés, pubs, and independents.

Q3: Can outsourced providers help prepare for EHO inspections?
Absolutely. Black Belt Cleaning Co. provides EHO-style audits and reports that flag risks before inspectors do.

Q4: How do I calculate ROI for outsourcing?
Add all in-house direct + hidden costs, then compare with an all-in outsourced contract. The difference = ROI.

Conclusion: A Smarter ROI Model for GMs

The decision isn’t just about cost per hour—it’s about total ROI. In-house cleaning often looks cheaper until you add hidden expenses and compliance risks. Outsourced cleaning provides predictable costs, higher hygiene standards, and time back for GMs to focus on growth.

At Black Belt Cleaning Co., we help Exeter and South West venues turn hygiene into a profit driver, not a liability.