The Contract Food Services Group
operates more than 325 units, providing a wide range of food service
capabilities to a variety of clients.
Marriott is the world's leading supplier of catering service to airlines,
with 65 flight kitchens serving domestic and international air travelers.
The Food Service Management Division manages restaurants, cafeterias,
conference centers and other facilities for 211 clients, including business, health care and educational
institutions. The group also manages
30 restaurants in airline terminals and
Review of 1980
Results for Contract Food Services
improved significantly in 1980. Operating profits increased 27% over 1979
levels, while sales were up 10%.
This year's performance benefited
from increased productivity and new
business in domestic airline catering,
new food service management
accounts, and better results from
terminal and highway restaurants.
These factors more than offset the
effects of lower domestic air traffic
and increased competition in certain
international airline catering markets.
Results for the U.S. In-Flite Division increased despite the recession-
induced decline in airline passenger
traffic during the year's second half.
These gains reflected higher productivity, improved cost control and new
business from a number of carriers.
The division's productivity improvement efforts reduced costs in
major In-Flite operations. Under this
program, local personnel and staff
experts conduct productivity reviews
concentrated at those operations
where meaningful cost savings can
be realized in the shortest time. This
effort, like similar ones in the group's
other divisions, is aimed at making
Marriott the lowest-cost producer of
New accounts were added at several existing flight kitchens, two idle
kitchens were reactivated, and new
kitchens were completed in Atlanta
International airline catering results were lower in 1980 due to
increased competition in South
America and reduced tourism in
Spain. Operating profits from Caribbean operations increased, but were
restricted by reduced U.S. travel to
that area. The division's 1981 results
should improve with the extension
of the productivity program to international units and the addition of
selected new accounts.
Food Service Management
Operating profits in the Food Service Management Division increased
again in 1980, aided by strong marketing efforts, particularly in health
care, which secured new accounts in
seven states. Among hospitals added
were Frankford (Philadelphia), Jackson Memorial (Miami) and Lexington
County (Columbia, S.C.).
New business food service clients
included units of Texas Instruments,
General Telephone, Dow Chemical,
Sperry-Univac, IBM, SCM and International Paper.
Among new educational services
accounts were Carnegie-Mellon University (Pittsburgh), Texas Christian
University (Fort Worth), Bentley College (Waltham, Mass.), and the National Fire Academy (Emmitsburg,
Total sales and profits for airport
terminal restaurants managed by
Marriott were above 1979 levels, although substantial passenger reductions were experienced at several
major airports where the company
operates. New facilities were opened
at Indianapolis and Miami.
Results from highway restaurants
increased significantly over 1979s
Contract Food Services' performance in 1980 demonstrated its ability
to overcome problems resulting from
a weak economy. The group's diversity, as well as ongoing productivity
and cost control improvements,
should continue to offset the effects
of a short-term decline in domestic
Over the long term, this business
should continue to provide Marriott
with a solid source of profit growth.