Oshibori have long been part of hospitality culture in Japan: in the Tale of Genji era, it was used for visitors; during the Edo period it was used in hatago; later, it started to be used in many restaurants.
Oshibori are also known as o-tefuki; tefuki refers to ordinary handkerchiefs, and these derive from the Japanese te (手) (hand) and fuku (拭く), to wipe.
As many establishments use oshibori in large quantities, they often do not prepare them in the store, but instead employ a rental service which launders them, rolls them into the typical cylindrical shape, and delivers them already damp.
These rental service companies frequently wrap each oshibori individually in a clear, lightweight plastic seal (polyethylene film), which can be easily broken and removed by the customer before using.
Some beauty salons and dental clinics prefer to use a standalone oshibori dispenser, where a freshly made towel is prepared at the client's request.