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The Olive That Changed the Industry: How One Tiny Change Made a Big Impact
In 1987, American Airlines, under the leadership of Robert Crandall, was known for his relentless focus on cutting costs and boosting profits. Crandall was obsessed with finding ways to save money, no matter how small. After a study he made, he removed one olive from the first-class salad. This saved the company $40,000 a year. This small but clever change went unnoticed by passengers and sparked a new approach to cost-cutting in the airline industry, proving that even the tiniest details can have significant effects.
BREEFX ✨
August 31, 2024
Crandall initiated a study to see what passengers were leaving on their meal trays after finishing their meals. Surprisingly, they discovered that 3 out of 4 passengers in first class didn’t eat the olives that came with their salads.
Based on this finding, American Airlines decided to remove just one olive from the first-class salads. The idea was simple: those who ate the olives wouldn’t notice the missing one, and those who didn’t eat them wouldn’t care.
This seemingly minor change saved the airline $40,000 a year in direct costs. But it wasn’t just about saving money on olives. Olives have weight, and over thousands of flights, reducing that weight also meant saving on fuel costs.
Not a single passenger complained about the missing olive. The decision to remove it was so subtle that it went unnoticed, proving that even small, well-thought-out changes could have a big impact.
This small change marked a shift in the airline industry. Other airlines took note and began looking for similar opportunities to cut costs in places where passengers wouldn’t notice, leading to the rise of ultra-low fare airlines.
This story isn’t just about olives—it’s about the power of observation, creativity, and efficiency in business. By focusing on what’s truly necessary, companies can make impactful changes without compromising quality.
Stay tuned,
BREEFX ✨
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