I have this dispenser and love it:
https://www.amazon.com/dp/B000K8S1I0...a-301788688523
It looks like a regular shelf and dispenses perfectly. A giant box of paper towels is only like $25 and one box lasted us forever. I'm very insistent that kids take ONE paper towel. I swear it makes us all healthier.
The alternative for me is one towel per child/day, and I don't do any daycare laundry in order to save my sanity.