Holiday Inn

"Bob and I had known Heritage chairman Jim Hoak for years, so we flew out to Des Moines, Iowa, to check his temperature. Bob and I had doubled up in a single room at the local Holiday Inn, and the night before we met Jim, we made a beeline for the hotel bar after dinner, still chewing over the issues of control. “What if we did this with two classes of stock?” I asked Bob. “TCI can split its stock, then issue a class B share for every share that exists.” Bob looked at me, his empty face begging for an explanation for this unprecedented maneuver."

"America’s first franchise motel company, Holiday Inn, was founded in the early 1950s by Memphis home builder Kemmons Wil¬ son with much the same promise. You never wrote home about the accommodations, but every Holiday Inn met certain standards of cleanliness and service, regardless of its location. Pull in with your weary family after a day of dusty driving, and you knew just what to expect. I call this type of consumer promise consistent mediocrity. Don’t un¬ derestimate its power, especially at lower price points. Howard John¬ son restaurants and Holiday Inn motels had the same underlying appeal that food giants such as McDonald’s, Burger King, and Wendy’s have. Are you passionately drawn to the sandwich you order at Wendy’s, or are you more interested in its competitive price, con¬ sistency, and convenience? McDonald’s rarely comes out on top in newspaper surveys of the best burgers in town. America’s quick-serve burger franchises, now doing successful business around the world, are really in the frozen food distribution business. They specialize in serving customers a protein fix in environments of little excitement or delight. But a Quarter Pounder with cheese tastes the same in Bal¬ timore or Beijing. And McDonald’s bathrooms are clean all over the planet—no small feat!"