Disney Cancels Cast Members's 20% Dining Discount

[coasterphil]

It would seem that the free dining plan was a little too successful.

 

[uglybug2005]

This is a non-issue. CMs get a discount on Disney's Dining Experience, which is a much better deal anyhow, and it should always be understood that the paying guests come first.

 

[Dagger]

Disney's marketing promotions should not adversely affect a long-standing benefit on which cast members rely.

:hammer:

Have to agree with this one

 

[flscooman]

We have heard that CRO oversold the Pkg plan by close to 40k for the next 6 weeks so will be very busy in all restaurants accross property. I'm sure this is reason for suspending the discount for 6 weeks.

There is no set time on the discount it varies restaurant to restaurant.

when figuring the 18% service charge it is pre discount and pre tax
so $100 bill would have $18 added.

Remember CM's everything can change at a moments notice with just 2 magical words: Operational Needs

 

[Yen_Sid1]

I don't like the way Disney treated their CM's on this one. They should have just asked all the CM's to refrain from using their discount during the busy period because of the free giveaway.

 

[slappy magoo]

This is completely due to the free dining plan promotion; the restaurants are packed at extremely discounted prices. Disney has lost so much money on this that they'll probably never do it again!
quote]

Have they really lost a lot of money from the free dining plan. There are a lot of people on this board alone who have said that they wouldn't be traveling this year if had not been for the free dining plan. These people are paying for rooms, park tickets, and most likely lots of souveniers. I think this is a pretty good way to get people into the parks and spend money at times that generally it is not so busy. Is 20% really all that much for CMs to lose for 6 wks?

I would guess, after this promotion ends, and the dust settles, WDW will determine whether or not the promotion is worth having again. I would guess the original thought of Management was "If they don't have to spend money on food, they'll spend it elsewhere," and their eyes lit up with visions of all that Disney merch, some of it marked up to ridiculous extremes-flying off shelves, thus also making room for more "limited edition" merch.

However, one of the harsh truths of our economic climate is that not everyone can afford a Disney vacation. Politics aside, it's no secret that wages are not keeping up with inflation, the minimum wage hasn't been increased for far too long, and the price of a Disney vacation usually doesn't get cheaper. I would bet many visitors-not all, but not just a few, either-would not have been able to afford a Disney vacation any other way. Even with the promotion, they're scrimping to make it a reality. I know; I have relatives like this. They intend to spend as much on soveneirs as they usually do, because that's all they can spend. They don't look at the money saved on the free dining plan as "found money," and would not have gone at all were it not for the promotion.

Meanwhile, you also have a good chunk of families who are occasional visitors. WDW isn't a yearly thing, but it's not a once-in-a-lifetime thing either. They might normally have to visit on a stricter budget, but suddenly they are able to visit for a much more affordable price. SOME people might opt to spend that money on souveneirs. But SOME people might opt to spend that money...on a longer vacation, with more free dining. I mean, I like a ridiculously expensive Disney sweatshirt as much as the next cat, but if I had a choice between spending upwards of 40 to 50 bucks for each member of my family to get a sweatshirt, OR using that money for one more night in a resort, I'd be tempted to say memories will be more important than things. And still others might be tempted to just take those savings...and keep it.

As I said, if the promotion worked out for WDW, we'll know because they'll do it again. But if it's the last time we ever see the promotion, we'll know that it may have been a great perk for the visitors, but a bust for the company.

 

[PSU_Princess]

I would guess, after this promotion ends, and the dust settles, WDW will determine whether or not the promotion is worth having again. I would guess the original thought of Management was "If they don't have to spend money on food, they'll spend it elsewhere," and their eyes lit up with visions of all that Disney merch, some of it marked up to ridiculous extremes-flying off shelves, thus also making room for more "limited edition" merch.

However, one of the harsh truths of our economic climate is that not everyone can afford a Disney vacation. Politics aside, it's no secret that wages are not keeping up with inflation, the minimum wage hasn't been increased for far too long, and the price of a Disney vacation usually doesn't get cheaper. I would bet many visitors-not all, but not just a few, either-would not have been able to afford a Disney vacation any other way. Even with the promotion, they're scrimping to make it a reality. I know; I have relatives like this. They intend to spend as much on soveneirs as they usually do, because that's all they can spend. They don't look at the money saved on the free dining plan as "found money," and would not have gone at all were it not for the promotion.

Meanwhile, you also have a good chunk of families who are occasional visitors. WDW isn't a yearly thing, but it's not a once-in-a-lifetime thing either. They might normally have to visit on a stricter budget, but suddenly they are able to visit for a much more affordable price. SOME people might opt to spend that money on souveneirs. But SOME people might opt to spend that money...on a longer vacation, with more free dining. I mean, I like a ridiculously expensive Disney sweatshirt as much as the next cat, but if I had a choice between spending upwards of 40 to 50 bucks for each member of my family to get a sweatshirt, OR using that money for one more night in a resort, I'd be tempted to say memories will be more important than things. And still others might be tempted to just take those savings...and keep it.

As I said, if the promotion worked out for WDW, we'll know because they'll do it again. But if it's the last time we ever see the promotion, we'll know that it may have been a great perk for the visitors, but a bust for the company.

I think you are pretty much saying the same thing that I was trying to say. Even if people aren't spending extra money on souveniers they are still paying for rooms and park tickets when they otherwise might have just stayed at home.

 

[JimboJones123]

For me, 7 days is about a max. This trip we are taking full advantage and staying for 11 days because of free dining. We will buy at least 1 or more meals per day. Plus we can't go to the parks for 11 full days of fun. So I'm sure we'll use the boats, prob golf, and are thinking of adding the water parks too. So they'll be getting their money from us. Besides, souviners last about 2-3 days before the kids get bored and they want new ones. So over 11 days, they will get at least 1-2 more gifts each from us. More $$$ for Disney. It also is bringing in my parents for 13 days. They are APs and will be making the extra long trip because we are there. They usually only stay 6 days. SO Disney gets 2 more reservations for 2X as long as we usually stay. So essentially 4 regular trips from us just for offering free dining that they would not have gotten. Great for them.

 

[kachow]

Exactly, plus I'm sure they also considered the marketing aspect of doing this promotion. It's essentially like free sampling on a grander scale, although as mentioned, they're certainly getting some of that money back in other ways. But they're also getting people that may never have dined at some of the nicer restaurants to try them, and even if they only get those families to upgrade one or two of their vacation dinners from counter service to table service in the future, it's probably worth it. Or maybe it will sell some people dubious about the dining plan on its value, convincing them to pay for it on their next trip.

 

[Epcot82Guy]

As for the discount suspension, I agree it does not provide a good sentiment, but it is their right. I am sure this is for capacity and not for money (because, as pointed out above, this is not a major revenue difference).

As for the dining plan, it is not "too successful." If there was a number that would make it less or especially "not" profitable, Disney would have limited the availability. They are smart financially. I really do not think this is an issue of losing profitability. It is merely a matter of availability. They may likely have oversold it numbers-wise (i.e. whether they can handle that many guests in the restaurants), but I very much doubt this is damagint the plan's overall profitability. If you aren't paying for your meals, I bet at least 50% of the people will loosen their purse strings with either the resorts and/or souvenirs.

 

[BobLefty61]

Does this "suspenion" include the Cast Member discount at gift shops (for shirts, hats, etc.)?

 

[JimboJones123]

I worked in TV after 9/11, and because business crashed, there was a 15% drop in salaries across the board, with managers losing 25%, with promises of no raises for at least 1 year. THAT SUCKED. For better business, this is something that they may have to do. If you aren't satisfying your customers, you aren't in a very good business. Sure they may have overshot themselves, but the customers do come first. I would love to have gotten free hockey tickets for every game from the stations passes, but sometimes they had to go to the customers instead. I was very greatful for what I got, and some seasons I did get tix, but never expected them. It is a benefit. Like all benefits, subject to change. Why do you think that so many people are upset that their health insurance costs have gone up so much? Benefits are always changing for companies. Again, as a resident, they can get the DDE too. Then they wouldn't have to worry about the time restrictions also. There are much more important benefits that they could be losing.

 

[slappy magoo]

I think you are pretty much saying the same thing that I was trying to say. Even if people aren't spending extra money on souveniers they are still paying for rooms and park tickets when they otherwise might have just stayed at home.

Kinda, sorta...except that I think Disney was expecting people to spend that extra money while on vacation, too. And if they're not, or they're not spending the amounts of money Disney had hoped they'd spend, then they'd have to reconsider whether or not the promotion is worth offering ever again. Worse still, I'll bet some people used that money saved on the free dining offer to spend otuside the resort! Go to Universal or Sea World instead of buying more Disney stuff! You'd think Disney would have prepared for that and factored in the possibility when considering how the promotion would affect their profits, but you can only prepare for so much, and once the promotion begins, only time will tell if it was worth the risk.

 

[DisneyBride94]

The free dinign promotion is genius from an operational and marketing standpoint for several reasons:

1) maximizes capacity at all restaraunts... no excess capacity wasted... larger economies of scale by knowing up to 180 days in advance that restaurants will be full to capacity because guests are scheduling so far in advance so as to avoid finding no ADRs available.

2) guests stay on property... don't want to loose out on free dining... so less will leave to eat off property... fewer will sneak off to Universal... fewer will order in groceries from off site delivery services or need to make a grocery store stop on the way in...

3) people who would never spend to money to buy the dining plan try it and find they like it, and would consider paying for it another time when it is not offered for free. I think we are probalby hooked on it, though we've never paid for it.

4) And of course it isn't free... its baked into the room costs... We are forgoing AP room only dicounts because the net value is SLIGHTLY better (like $5 a day) for us to take the free dining promotion vs. the room only reservation... and then I don't have to worry about whether or not we can afford to splurge for anothe sit down meal... and I can feel all warm and fuzzy about getting the 5 of us a Mickey Bar for a snack!

5) Because of free dining... many folks have upgraded from value to moderate, or moderat to deluxe, thereby freeing up more room for the lesser categories for families that might otherwise have not considered going... it makes more room for everybody at the inn...at pricepoints they can provide...

6. It keeps the reservations coming in for hurricane season/back to school season when the parks are historically less full.

7) It causes good will... people who don't analyze it from a business standpoint think it is just the greatest thing since sliced bread....they don't realize it's not really free... It makes things more magical.

There are a myriad of ways that this program is good for Disney's bottom line... but it is an added bonus that it comes across as a win-win for guests and Disney. That's a very rare thing to achieve in business. I have to applaud it myself... It would make a fabulous case study for an MBA program... I'd love to have the numbers to chew on... (I'm not a numbers person unless its for a marketing analysis! ) No program is perfect... and they need to really look at the numbers now that they'll have two years of historical data WITH free dining vs... past years... but just knowing so far in advance that restaurants will be booked give them HUGE HUGE advantages from supply chain management and scheduling stand points...

 

[Epcot82Guy]

The free dinign promotion is genius from an operational and marketing standpoint for several reasons:

1) maximizes capacity at all restaraunts... no excess capacity wasted... larger economies of scale by knowing up to 180 days in advance that restaurants will be full to capacity because guests are scheduling so far in advance so as to avoid finding no ADRs available.

2) guests stay on property... don't want to loose out on free dining... so less will leave to eat off property... fewer will sneak off to Universal... fewer will order in groceries from off site delivery services or need to make a grocery store stop on the way in...

3) people who would never spend to money to buy the dining plan try it and find they like it, and would consider paying for it another time when it is not offered for free. I think we are probalby hooked on it, though we've never paid for it.

4) And of course it isn't free... its baked into the room costs... We are forgoing AP room only dicounts because the net value is SLIGHTLY better (like $5 a day) for us to take the free dining promotion vs. the room only reservation... and then I don't have to worry about whether or not we can afford to splurge for anothe sit down meal... and I can feel all warm and fuzzy about getting the 5 of us a Mickey Bar for a snack!

5) Because of free dining... many folks have upgraded from value to moderate, or moderat to deluxe, thereby freeing up more room for the lesser categories for families that might otherwise have not considered going... it makes more room for everybody at the inn...at pricepoints they can provide...

6. It keeps the reservations coming in for hurricane season/back to school season when the parks are historically less full.

7) It causes good will... people who don't analyze it from a business standpoint think it is just the greatest thing since sliced bread....they don't realize it's not really free... It makes things more magical.

There are a myriad of ways that this program is good for Disney's bottom line... but it is an added bonus that it comes across as a win-win for guests and Disney. That's a very rare thing to achieve in business. I have to applaud it myself... It would make a fabulous case study for an MBA program... I'd love to have the numbers to chew on... (I'm not a numbers person unless its for a marketing analysis! ) No program is perfect... and they need to really look at the numbers now that they'll have two years of historical data WITH free dining vs... past years... but just knowing so far in advance that restaurants will be booked give them HUGE HUGE advantages from supply chain management and scheduling stand points...

Very well stated. If you are paying someone, best to have them working hard. Really, the only tangible costs are the food/supplies (which add up, but also get deferred elsewhere).

Another big benefit of this is that if it is truly successful, it translates into fewer closed and "seasonal" attractions, restaurants, and park hours. If bodies are there to fill it up and the costs are offset, profit-producing locations can be increased time-wise. This may take a couple years, but it is a good possibility.

 

[JimboJones123]

It also helps them retain staff better. If hours are cut in down times, and they are pushing cast to their limits in peak, it is really difficult. So if they can balance out the downtimes, it helps cast morale

 

[CrashNet]

Its kinda funny. I've asked several friends who are CMs as well, and they shrug this off. Its really not that big of a deal, as we probably go out to eat at a restaurant on Disney property maybe once every two weeks at most, so thats only about three times.

And to Kronos, you're right, very tacky indeed. That, and I tend to go a little overboard with tip. :lookaroun

 

[typhoonguy]

Its kinda funny. I've asked several friends who are CMs as well, and they shrug this off. Its really not that big of a deal, as we probably go out to eat at a restaurant on Disney property maybe once every two weeks at most, so thats only about three times.

And to Kronos, you're right, very tacky indeed. That, and I tend to go a little overboard with tip. :lookaroun

I agree, no big deal. Just means I'll pay a little more. With all the money Disney has saved me, I'll survive. And I still have 1 50% off holiday coupon.

 

[Chernabog]

As said in the beginning, this is only a short period of time. Does it rub cast members the wrong way...yes. Realistically though...how many cast members really eat that often in the park anyway. Or better put...how many cast members are even in the park tat often if they're not working. Not that many. Disney will make lots of money from the free dining option (that has sold out those time periods) and hopefully it will be put back to use to improve the parks.
It doesn't really hurt cast members (except those that have family coming those weeks and were goign to use the discounts for them) but it just kinda makes you feel a little shafted and less cared for.
Like cast previews... not something you have to do, but makes the cast members feel special and raises moral. Take the little things away though and you might end up with unhappy workers.

We are in the buisness of making magic and making people happy...sometimes the question begs, which people's happiness is more important?

 

[Thelazer]

"It also helps them retain staff better. If hours are cut in down times, and they are pushing cast to their limits in peak, it is really difficult. So if they can balance out the downtimes, it helps cast morale"

Now, I'm not knocking you.. But, this really doesn't help cast morale, or retain staff. Try lowering the cost of meals in our cafeteria (as well as increasing the quality) give us all a $2.00 an hour raise and get rid of all the layers of crap we have to go thru to get requested day off. THAT would do wonders for morale and retention.

For example, did you know that at one of the large local hotels off I-Drive the staff meals there cost $1.00 per item? That's say, $3.00 for a drink, entree and desert. $3.00 bucks. This is also TOP quality food (steaks, pork chops, etc)

Now, lets check out the Airmark cast cafe.. $3.00 hmm. That might get you some fries and a drink... that's about it.