prberk
Well-Known Member
Precisely, I've been visiting the parks for 3 decades and I can remember when the Diamond Horseshoe was open and had a SHOW and it finally closed in 2003 to become a seasonal eatery. Can't blame that closure on Iger, That one was all on MDE's 'Strategic Planning' group.
Apparently some commenters like to attack the messenger because they don't like the message. Under Iger's tenure P&R margins have been on the order of 12%, Under MDE margins averaged approximately 23% and even MDE's 10 worst years P&R margins were on the order of 15%, Iger's team just managed to get 17% LAST YEAR and that was only achieved by slashing Domestic P&R CAPEX to 7.4% expressed as percentage of revenue, Under MDE CAPEX was 20-26%
Back to the point at hand, DIsney is creating FRICTION or sales resistance with its long waits at meal venues, In the online commerce world you now see order as a 'guest' because companies found people making a one time purchase would 'abandon' their online carts because of the extra effort involved in creating an account.
Bottom line if you make it hard for people to give you money many of them will not. If I'm in NYC and want a hot dog and the cart has too much of a line, Across the street is another cart and you will probably go there for your dog,
WDW labors under the assumption that their customers are a 'captive' audience and will jump through any hoops WDW sets up for them, Since WDW broke my abiility to create FP+ reservations back in August of 2013, I'm not captive to FP+ times so all attractions are standby for me,
So frequently if I'm at the MK and it's busy and I want to eat It's faster to leave the park walk to the contemporary and grab a meal at Contempo Cafe where I can relax and SIT DOWN and eat. Rather than stand 20-30 minutes at Casey's (a favorite of mine) and attempt to find someplace to lean aganst and eat a hotdog and attempt not to spill drink on myself or others.
WDW wants impulse buying but they have forgotten how to facilitate it, They assume only X hotdogs will be sold and try to come up with the cheapest way to sell X hotdogs, Yet they forget the lesson at any sports or concert venue - ever see a food venue closed during a ball game (7'th inning or last quarter excepted)
You ALWAYS want to be ready to take the customers money, Not to give them a excuse to hang onto it...
Except in your analogy, Disney also owns the hot dog cart across the street.
This is kind of my point. Even if you're not a "captive audience" within the Magic Kingdom (as most guests are), you're a captive audience within Walt Disney World. The percentage of guests who would actually leave property to get lunch because the waits at any of the QSRs are too long is paper thin.
Explorer, you know I agree with your premise of the need to open more of the shuttered restaurants (like Aunt Polly's), but I think you chose the wrong analogies on this post, as CaptainAmerica points out. In this case it would be cannibalism -- since Disney owns the "hot dog across the street" AND the hotel down the street. This is also what @jakeman was calling cannibalism and not increased business.
But I actually think the bigger loss is the loss of the business who either skip a meal altogether due to the lines, or who don't really need a meal or snack rigth now but are attracted by the smells/signs/air conditioning of the restaurant and would buy something if the lines were reasonable (the impulse buy). And yes, food and snacks can definitely be impulse buys (like the candy bars stationed at grocery store checkout!).
I think that is the bigger point that i wanted Jakeman to see (and which he has addressed somewhat already since then).