Improvements like this would succeed in building sales--but not by capturing milk shake sales from competing quick-service chains or by cannibalizing other products on its menu.
Since their limited-service lodging has average gross margins of 51%--versus 38% for full-service hotel chains--most owners can operate at lower occupancy levels.
Now fast-growing retailers like AutoZone and service station chains like Jiffy Lube cut out the middleman -- Allied's traditional customers -- and they demand sophisticated logistics.