News Monster Inc Land Coming to Disney's Hollywood Studios

LSLS

Well-Known Member
I know the history of "phase 2" expansions is a sad and sorry story.

But Villains isn't "blue sky."

Not according to Josh. And yes, I can hear the guffawing.

But he said specifically that all that was being presented was not blue sky. And with Villains, something was already in progress.

What something?

Top something. <shrug>

He was vague.

Yeah I view Villains as much more of a phase 1. I think whenever we get the newest Google Earth Image (still May as of now), that will tell us a lot more as he had said it had started. I know they have cancelled a lot in the past, but I just think they are in desperate need of good PR, and I don't think they could afford the bad PR of outright cancelling this one. Monsters? I could absolutely see that. Maybe even Cars, but I don't think they cancel the biggest announcement from that event.
 

Bocabear

Well-Known Member
I am hopeful it won't be cancelled and it will end up being a really great area themed as well as the Harry Potter areas within Universal... with areas for exploration that are not necessarily part of an attraction queue and they come through with more than one attraction... I know it would not be good PR to cancel Villains at this point, but I don't think they really care... They seem to be mobbed, good performance or not, and they know that....
 

celluloid

Well-Known Member
Rest assured, it is animation courtyard, becuase one thing the execs hate more than an attraction that does not draw people or push as much merch, is entertainment venue pay that does not draw as much people are push as much merch.;-p
 

lentesta

Premium Member
The world’s busiest theme park has less dining capacity today than it did 30 years ago, and dining is something that makes money.

There's some evidence that guests have switched spending from sit-down dining to Lightning Lane. Most of Disney is thrilled with that.

IIRC, the price of a Disney food item cannot exceed 25% of the cost of ingredients + labor to produce it. So a $60 steak costs Disney $15 to buy and cook.

That doesn't count the cost of operating the restaurant or all of the support staff that goes into running it. This article says that's 35% on average. Disney doesn't pay rent, but they do have to set aside money for building maintenance, upgrades, taxes, etc., which is a component of rent, and it's probably considerable for Disney. Let's say that's 25% instead of 35%, and note that I could be wildly off on this one.

So a Disney sit-down restaurant's gross profits are 50%.

Lightning Lane revenue is something like 96% profit. (~$750MM in annual revenue on $25MM to run the program)

Disney would trade $1 in restaurant revenue for $1 in Lightning Lane revenue all day long, given those margins.
 

celluloid

Well-Known Member
There's some evidence that guests have switched spending from sit-down dining to Lightning Lane. Most of Disney is thrilled with that.

IIRC, the price of a Disney food item cannot exceed 25% of the cost of ingredients + labor to produce it. So a $60 steak costs Disney $15 to buy and cook.

That doesn't count the cost of operating the restaurant or all of the support staff that goes into running it. This article says that's 35% on average. Disney doesn't pay rent, but they do have to set aside money for building maintenance, upgrades, taxes, etc., which is a component of rent, and it's probably considerable for Disney. Let's say that's 25% instead of 35%, and note that I could be wildly off on this one.

So a Disney sit-down restaurant's gross profits are 50%.

Lightning Lane revenue is something like 96% profit. (~$750MM in annual revenue on $25MM to run the program)

Disney would trade $1 in restaurant revenue for $1 in Lightning Lane revenue all day long, given those margins.

Except that is not the point. Part of the point of Lightning Lane and Priority passes is also to provide more time for people to do things not waiting and making the company less money, but getting guests to stay longer.


It is a both situation.
 

celluloid

Well-Known Member
What makes you say that? What does entertainment have to do with the location of Monsters? Genuinely curious.

Because Animation Courtyard is based on entertainment/meet and greet venues for its costs.

Muppets cost less to operate and is a smaller footprint.
Animation Courtyard currently has no food and beverage operation at all that sells well. A small Monsters place and kiosk novelties will change that quick.
Animation Courtyard and Take 5 will take the work areas if this goes through.

Entertainment venues often cost as much as attractions to operate daily due to cast and crew labor on top of operations.
 

Disstevefan1

Well-Known Member
There's some evidence that guests have switched spending from sit-down dining to Lightning Lane. Most of Disney is thrilled with that.

IIRC, the price of a Disney food item cannot exceed 25% of the cost of ingredients + labor to produce it. So a $60 steak costs Disney $15 to buy and cook.

That doesn't count the cost of operating the restaurant or all of the support staff that goes into running it. This article says that's 35% on average. Disney doesn't pay rent, but they do have to set aside money for building maintenance, upgrades, taxes, etc., which is a component of rent, and it's probably considerable for Disney. Let's say that's 25% instead of 35%, and note that I could be wildly off on this one.

So a Disney sit-down restaurant's gross profits are 50%.

Lightning Lane revenue is something like 96% profit. (~$750MM in annual revenue on $25MM to run the program)

Disney would trade $1 in restaurant revenue for $1 in Lightning Lane revenue all day long, given those margins.
Good point. LL (money for nothing) is almost pure profit.

Also the reason for adding lounges in WDW. The margin on alcoholic beverages are also super high.

This is a BAD sign for Dining and a bad sign for the overall guest experience.

Dr. @lentesta continues to provide the cold hard facts.
 

Starship824

Well-Known Member
In the Parks
No
Because Animation Courtyard is based on entertainment/meet and greet venues for its costs.

Muppets cost less to operate and is a smaller footprint.
Animation Courtyard currently has no food and beverage operation at all that sells well. A small Monsters place and kiosk novelties will change that quick.
Animation Courtyard and Take 5 will take the work areas if this goes through.

Entertainment venues often cost as much as attractions to operate daily due to cast and crew labor on top of operations.
Aaa, however on the flip side one of the major hurdles to AC is that they have to close those offices behind it so they can build the gravity building for the coaster. I guess money off LL, food and merch overpowers the office problem?
 

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