News Monster Inc Land Coming to Disney's Hollywood Studios

lentesta

lentesta

Premium Member
lazyboy97o said:
The world’s busiest theme park has less dining capacity today than it did 30 years ago, and dining is something that makes money.
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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.
 
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celluloid

Well-Known Member
lentesta said:
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.
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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.
 
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celluloid

Well-Known Member
Starship824 said:
What makes you say that? What does entertainment have to do with the location of Monsters? Genuinely curious.
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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

Disstevefan1

Well-Known Member
lentesta said:
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.
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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

Starship824

Well-Known Member
In the Parks
No
celluloid said:
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.
Click to expand...
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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celluloid

Well-Known Member
Starship824 said:
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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I would think so. The many office buildings around The Disney-MGM Studios were to facilitate the production division. These are not needed as much anymore and while there is certainly things in there right now, nothing that can't be moved.

The Gravity building is very vertical based so it really won't take as much room as some are thinking.
 
Indy_UK

Indy_UK

Well-Known Member
A thought, Animation Courtyard is actually quite a large area, is it too big for Monsters Inc as an IP?

Launch Bay and behind will become the ride. The store I imagine will become a monsters inc one but what about Disney Jr ect?

Can’t see them bothering to move Laugh floor over
 
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celluloid

Well-Known Member
Indy_UK said:
A thought, Animation Courtyard is actually quite a large area, is it too big for Monsters Inc as an IP?

Launch Bay and behind will become the ride. The store I imagine will become a monsters inc one but what about Disney Jr ect?

Can’t see them bothering to move Laugh floor over
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It is about the right size for the "boutique" land Monsters is.
 
ToTBellHop

ToTBellHop

Well-Known Member
Indy_UK said:
A thought, Animation Courtyard is actually quite a large area, is it too big for Monsters Inc as an IP?

Launch Bay and behind will become the ride. The store I imagine will become a monsters inc one but what about Disney Jr ect?

Can’t see them bothering to move Laugh floor over
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There’s much more space BEHIND it for further expansion should that get approved at a later date.
 
Sneaky

Sneaky

Well-Known Member
Henry Mystic said:
Inside Out, The Incredibles, Mysterious Island, Frozen, Figment, Captain EO, and Tangled all have unannounced projects being worked on ATM. A Weather pavilion that I have no idea how far along it got in the development process some time ago as well.
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Moth

Moth

Well-Known Member
Henry Mystic said:
Inside Out, The Incredibles, Mysterious Island, Frozen, Figment, Captain EO, and Tangled all have unannounced projects being worked on ATM. A Weather pavilion that I have no idea how far along it got in the development process some time ago as well.
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A Weather pavilion? Next to a Time Pavilion that's been a dream of mine!
 

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