Labor cost cutting measures begin at Walt Disney World as the company enters Q1

[larryz]

My dad failed the ASVAB requirements to be a cook for Army

I'll bet that didn't keep them from making him a cook...

 

[larryz]

The issue isn't QS F&B. Anyone can be trained to do that, and relatively quickly. The issue is at the "real" restaurants. The Ohana kitchen, for example, is on stage and requires some skill.

Maybe it's time for all those Grilling Dads across the country to band together and save 'Ohana!

What do you say, guys -- grab your tongs and your tupenus and let's head for Orlando!!!

 

[larryz]

Oh no you just gave Bob another up-charge moment --sad thing you would have people buying into it

Well, at least you'd get guaranteed park entry, no matter what closure condition the parks might be in.

 

[larryz]

Chapek's compensation is $33 million less than Iger's was when he was in that position.

So that's only a 60% reduction. 30% to go.

 

[mikejs78]

The catch here is how the parks were built and how that clientele was cultivated…very carefully…for 50 years.

it’s a mass audience. It always was. An mba with little to no life experience can’t “pivot” that in a 90 degree turn. It was never going to be that easy.

disney parks are not cheap and never have been…but they were carefully positioned to make the “Jack and Diane” feel accomplished if they were will to pay the price…en masse.

out kicking that coverage is a tremendous mistake.

No reason Disney can't appeal to both the masses and the affluent with use of upcharge experiences that are really high quality without taking away from the experiences of the masses. Walt did this with Club 33.

The problem is they are making it virtual a requirement to be affluent at this point. It's no longer "yes, we have to save to go to Disney, but it's doable" like it was when I was a kid, but now it's "we can't afford it at all".

I'm in a position now where I can still afford it. As a kid my family would not have been able to afford it today. If we had never gone to Disney when I was a kid, I might not be so willing to spend my money on that today. They built my loyalty years ago by providing an experience that my parents could afford, and as I grew and increased my income, I am more willing to spend it on an experience that I've been doing as a kid. If they lose mass appeal, that's a bunch of potential future fairly affluent customers that they are alienating.

This is all very short-sighted of Bob.

 

[larryz]

Chapek's current total compensation package paid him more than $33 million less than Iger made as CEO the year before.

That must be talking point number 4...

 

[Lilofan]

So that's only a 60% reduction. 30% to go.

Anyone remember when Disney execs took 100% Iger , 50% Chapek , 25%, 20% for senior execs and VPs voluntary and involuntary pay cuts while across the board layoffs were happening last year?

 

[Sirwalterraleigh]

No reason Disney can't appeal to both the masses and the affluent with use of upcharge experiences that are really high quality without taking away from the experiences of the masses. Walt did this with Club 33.

The problem is they are making it virtual a requirement to be affluent at this point. It's no longer "yes, we have to save to go to Disney, but it's doable" like it was when I was a kid, but now it's "we can't afford it at all".

I'm in a position now where I can still afford it. As a kid my family would not have been able to afford it today. If we had never gone to Disney when I was a kid, I might not be so willing to spend my money on that today. They built my loyalty years ago by providing an experience that my parents could afford, and as I grew and increased my income, I am more willing to spend it on an experience that I've been doing as a kid. If they lose mass appeal, that's a bunch of potential future fairly affluent customers that they are alienating.

This is all very short-sighted of Bob.

…there is a reason you can’t do that.

because it’s based on faulty economics and their optics.

get your popcorn.

 

[Sir_Cliff]

Whats crazy is how tone deaf disney is about it. Its all these external factors and NOTHING they do is wrong. I hope somebody with sense prevails here. In general the parks are too overpriced across the board in THIS economy.

Excellent point…and how it was going to be.
The “it’s luxury now” was always a pipe dream. More indicative of the economics of a decade of insanity that just ended than some type of well reasoned business plan

Too early to tell, I guess, but it will be interesting to look back at how Disney's response to the pandemic turns out. Rather than approaching a period of possible economic and social upheaval with caution and trying to shore up their most loyal customers, they've decided to grab the moment to make all the cuts and price rises they have always wanted to make in the good times. If everything doesn't just bounce back to a period of endless growth and prosperity, they may have a problem.

 

[mikejs78]

…there is a reason you can’t do that.

because it’s based on faulty economics and their optics.

get your popcorn.

I disagree - I think they can do that, they've just chosen to try to go exclusively after the higher end market, which may or may not be profitable in the short term but is catastrophic for the long term.

 

[Lora Baines Bradley]

They have shortages in very specific roles - kitchens and housekeeping primarily. Most guest facing areas are not a problem.

Expect to see cuts in the usual places, like number of CMs in stores etc.

The hospitality industry as a whole is experiencing trouble finding people for those areas, Disney isn’t unique. What is interesting is that the appeal of working for Disney can’t attract people to fill the roles. Makes sense, because people are starting to realize those jobs are thankless, hard jobs and they could be better off in a better field. Not to mention the declining Cast experience, or so I’ve heard from my CM friends.

It’s almost like telling people “if you hate your job so much, go find another one!” has consequences and people are doing exactly that. Now it’s “people are lazy and don’t want to work these backbreaking jobs where they never see their kids and can barely get by!” Workers are leaving the hospitality industry in droves and I don’t blame them, even as a Hospitality major who has worked hospitality (and for Disney).

 

[Brer Panther]

I know this really is not the thread for it, but the alternative to the choice taken by management and the one you are advocating here is the indefinite rot of the interior of the attraction, in some cases literally. They are doing enough of that already around the resort on marquee attractions (Spaceship Earth), I do not understand why you want it to happen on another one of the 10 most important attractions on property.

They can refurbish the attraction without retheming it. Stuff like fixing animatronics and cleaning the sets would likely be cheaper than retheming the whole thing.

 

[Sirwalterraleigh]

Anyone remember when Disney execs took 100% Iger , 50% Chapek , 25%, 20% for senior execs and VPs voluntary and involuntary pay cuts while across the board layoffs were happening last year?

…they still didn’t need any of us to buy them a cookie.

the question is: why do I want to go throw them $5,000+ for another week now (excluding DVC)??

…that’s a serious question I have a very hard time answering with increasing frequency.

 

[Sirwalterraleigh]

The hospitality industry as a whole is experiencing trouble finding people for those areas, Disney isn’t unique. What is interesting is that the appeal of working for Disney can’t attract people to fill the roles. Makes sense, because people are starting to realize those jobs are thankless, hard jobs and they could be better off in a better field. Not to mention the declining Cast experience, or so I’ve heard from my CM friends.

It’s almost like telling people “if you hate your job so much, go find another one!” has consequences and people are doing exactly that. Now it’s “people are lazy and don’t want to work these backbreaking jobs where they never see their kids and can barely get by!” Workers are leaving the hospitality industry in droves and I don’t blame them, even as a Hospitality major who has worked hospitality (and for Disney).

A bit of a problem in a place like Orlando.

 

[mikejs78]

The hospitality industry as a whole is experiencing trouble finding people for those areas, Disney isn’t unique. What is interesting is that the appeal of working for Disney can’t attract people to fill the roles. Makes sense, because people are starting to realize those jobs are thankless, hard jobs and they could be better off in a better field. Not to mention the declining Cast experience, or so I’ve heard from my CM friends.

It’s almost like telling people “if you hate your job so much, go find another one!” has consequences and people are doing exactly that. Now it’s “people are lazy and don’t want to work these backbreaking jobs where they never see their kids and can barely get by!” Workers are leaving the hospitality industry in droves and I don’t blame them, even as a Hospitality major who has worked hospitality (and for Disney).

There's also a large number of fewer people in the labor pool - all of World Showcase, for example, is normally staffed by international cast members; now they have to fill those slots with domestic employees.

 

[Lilofan]

I disagree - I think they can do that, they've just chosen to try to go exclusively after the higher end market, which may or may not be profitable in the short term but is catastrophic for the long term.

WDW parks and resorts sell us on theming, storytelling and guest service. Sure, one can go to other non Disney places with more advanced rides and attractions, newer hotels but WDW gets the crowd to buy into the magic.

 

[Sirwalterraleigh]

They can refurbish the attraction without retheming it. Stuff like fixing animatronics and cleaning the sets would likely be cheaper than retheming the whole thing.

Not when WDI can’t do anything responsibly…and corporate won’t pay for anything or plan it where it’s efficient and not an eyesore

 

[Lora Baines Bradley]

A bit of a problem in a place like Orlando.

I agree. I feel the Hospitality industry is going to see a reckoning in the next few years. They’ll fill the jobs eventually, but Disney doesn’t value talent they way they used to. The people that make the disney experience “Disney” are realizing their worth and are going to jobs where they have a better work/life balance and are treated better by guests and their employer.

There's also a large number of fewer people in the labor pool - all of World Showcase, for example, is normally staffed by international cast members; now they have to fill those slots with domestic employees.

Exactly. With regards to the CP, I hear the situation is pretty dire. The CPs they invited back from Spring 2020 are dropping out like flies. As a past CP i’ve gotten many many emails about applying to the CP. It seems desperate at this point.

 

[Sirwalterraleigh]

There's also a large number of fewer people in the labor pool - all of World Showcase, for example, is normally staffed by international cast members; now they have to fill those slots with domestic employees.

I would imagine more college program will be thrown that way over the coming months.

but it’s not just supply…re-evaluation of employment caught fire and that is bad news to “service” employers.

it always kinda sucked. And the bosses like the 200:1 wage discrepancies between themselves and their workers they don’t really know exist.

 

[Lilofan]

The hospitality industry as a whole is experiencing trouble finding people for those areas, Disney isn’t unique. What is interesting is that the appeal of working for Disney can’t attract people to fill the roles. Makes sense, because people are starting to realize those jobs are thankless, hard jobs and they could be better off in a better field. Not to mention the declining Cast experience, or so I’ve heard from my CM friends.

It’s almost like telling people “if you hate your job so much, go find another one!” has consequences and people are doing exactly that. Now it’s “people are lazy and don’t want to work these backbreaking jobs where they never see their kids and can barely get by!” Workers are leaving the hospitality industry in droves and I don’t blame them, even as a Hospitality major who has worked hospitality (and for Disney).

If anyone thinks that the overall hospitality tourism job in America is a key to financial sucess, there is a bridge for sale. When one accepts a job, they agree to their wages.