In an over-the-top example of watching the pennies so the dollars add up, Marriott Intl. (NYSE: MAR) has found an extra $2 million a year in its bacon. Fortune Magazine reports that the chain has abandoned uniform six-inch strip of crispy goodness in favor of strips of varying lengths. The lower price of the irregular sizes should bolster the bottom line, it hopes without harming the perception of value of its customers.
The money may help pay for upgrades to other Marriott menu items. Hoping to improve its prospects during the travel drought, Marriott has undertaken a program to improve the food in its restaurants. Guests will find more food pleasing to the palate of international visitors, from hummus to sushi. It is also taking advantage of the recession-driven drop in the price of luxury items such as lobster, which should appeal to anyone on an expense account generous enough that it will cover a Marriott room.
Marriott can use all the help its kitchen can provide, as it struggles with a sharp decline in revenue per room (down nearly 20% last quarter) and recent restructuring charges that splashed red on its first quarter earnings report. Moody's recently downgraded its senior unsecured rating to one step above junk, Baaa3.
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Reader Comments (Page 1 of 1)
6-29-2009 @ 11:49AM
roger said...
Come on reporters ..... The "Mariott" company name in the title of this article is mispelled. It's even funnier because you have a picture that is embedded that has the name of Marriott spelled correctly! If you can't report with words or company names spelled correctly, then maybe it's time to find a new job! LOL