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| Title | Marriott Corporation, 1978 Annual Report |
| Creator (LCNAF) |
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| Publisher | Marriott International, Inc. |
| Date | 1978 |
| Description | Marriott Corporation Annual Report for the year ending on July 31, 1978. |
| Subject.Topical (LCSH) |
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| Subject.Name (LCNAF) |
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| Genre (AAT) |
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| Language | English |
| Type (DCMI) |
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| Original Item Location | Marriott Hotels Collection |
| Digital Collection | Annual Reports from the Hospitality Industry Archives |
| Digital Collection URL | http://digital.lib.uh.edu/collection/hiltonar |
| Repository | Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston |
| Repository URL | http://www.uh.edu/hilton-college/About/hospitality-industry-archives |
| Use and Reproduction | No Copyright - United States |
| File Name | index.cpd |
| Title | Image 13 |
| Format (IMT) |
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| File Name | hiltonar_201609_049_013.jpg |
| Transcript | Restaurants Overcome Higher Costs; Farrell's Division Turned Around; Group Profits Increase in '78 ' Profit margins expand at established Roy Rogers and Hot Shoppes. Farrell's regains profitability. > Fifty-three restaurants opened or converted. ' Special new manpower scheduling helps hold the line on labor costs. ' Energy consumption per unit declines for third straight year. Marriott Restaurant Operations turned in a substantial profit gain of 21% for fiscal '78. Much of the improvement for the Group was based on a major swing in the Farrell's division which made money after prior-year losses. Roy Rogers, Hot Shoppes, and Big Boy also registered good increases. Only Dinner House profits declined. Group sales were up 8% —which was more than the rate of price increases. New and converted units— 53 in all—aided results. But most of these were added near year-end, including an acquisition of 13 formerly franchised Roy Rogers units. The closing of 25 marginal units in '78, although limiting sales increases, improved profitability for '78 and beyond. Controls Help Margins Increased efficiency offset much of the Group's higher costs for food, energy and labor—and helped to improve margins. Costs of purchased food spiraled 12% during fiscal 78. The increase for the meat/poultry/ seafood category alone was 22%. Higher menu prices partially covered these increases—and new controls and menu changes more than offset the balance. Energy consumption per unit declined for the third consecutive year. New control equipment and constant monitoring by management is producing the year-to-year reductions needed to offset the continuous rise in utility rates. Labor costs overall declined as a percent of sales. Part of the burden of last January's 15% increase in the federal minimum wage was passed along to customers through higher prices. More importantly, effective new ways to reduce the total number of hours worked were developed. Fine-tuning work schedules, and switching to less labor- intensive procedures helped hold the line on labor expense. Continued Growth Ahead At year-end, after both pruning and expanding, the Restaurant Group totaled a strong base of 455 units. Future growth will focus on Marriott's most popular and most profitable restaurant concepts— Roy Rogers and Big Boys. The Roy Rogers division plans to almost double its 143-unit total by 1982. Development costs increased in fiscal '78 to meet the Group's aggressive growth goals. Market studies were completed on all targeted growth markets. Real estate searches and acquisitions are on track to meet the 1979 expansion goal. Further modification of prototype building designs 11 |