Using cloth napkins in your restaurant is a great way to cut down on paper waste and protect the environment. Although there is the extra step of laundering the napkins, the long-term cost of buying paper napkins is drastically reduced with the use of cloth ones.
After repeated laundering, restaurant cloth napkins can lose their luster over time. That doesn't mean they've lost their functionality, however! Use older, frayed napkins as cloths for clean up. Napkins that are still in good shape, but perhaps have experienced color fading can be used as liners for breadbaskets or pastry displays. Keep the second-generation napkins in a different storage drawer from new napkins so they don't get confused for table settings.