A soft starter works like a vfd in how it lowers inrush current on motors by temporarily reducing the incoming AC frequency at motor startup. In other words, it "ramps up" a motors speed instead of starting immediately. This reduces inrush current, which is what the power companies bill your facility on. (They do this because they have to build their infrastructure to be sufficient everywhere when your wash is at peak demand.) The main difference with a soft starter is that it doesn't have large enough capacitors and DC bus or the volts/hz ratio controls to keep a motor running at a frequency other than 60 hz. It is cheaper because you get less capability.
Axxlrod, to answer your question, I think that you would be best off using a combination of both, and if you can adjust your step start time between dryers, increasing that as long as possible based on your conveyor speed and rinse arch distance. Yes, the VFDs should help avoid having to "look back" to the front of the tunnel, but you want to be able to keep your inrush current to a minimum. VFDs will not eliminate all inrush current, they will just pad it a lot. I would just make sure that I didn't have any overlap in my step starts, ramp them up as slowly as possible, and then call the electric company to do a demand test. I would set the look back at about half the tunnel length as a guess. To get an accurate location, you would have to do a whole lot of calculations.