The Spirited Seventh Heaven ...

[PhotoDave219]

Her name is vaguely familiar.

But moving from the Olive Garden and Red Lobster to WDW sounds like an even trade!

Also.... it disturbs me what investors did to Darden. Forcing in their management and then gutting the company for short term profits? Sicking, consideing its a major employer in the area.

 

[WDW1974]

Its my impression that she's not familiar with the issues surrounding the resort at the moment. I can think of a few independent people that would be a better choice, but I dout they would want to take whatever peanuts the Sentinel is offering.

The last top shelf guy they had was Craig Dezern in the late 80s/early 90s ... and we all know what happened to him: Disney bought him and brought him aboard.

That was a smart strategy back then. It would be a smarter one today (is that too obvious?)

 

[WDW1974]

Also.... it disturbs me what investors did to Darden. Forcing in their management and then gutting the company for short term profits? Sicking, consideing its a major employer in the area.

It was disgusting, Dave. And what's worse is I think within five years you are looking at those chains being downsized almost to the point of non-existence. They were killed by the 2008 collapse and the death of the American middle class. They are doing so many desperate things because the families who would come in on Friday night and drop $50-100 largely don't exist anymore. Burgers on the menu ... buy one meal, take a second home. Those are death throe moves ... and I won't even start talking about the management. Sick.

 

[WDW1974]

One final note for the night, but the Villains event at TPFKaTD-MGMS is NOT the more grown up Halloween hard ticket event that was pitched numerous times since the 90s.

That event was far more than foamhead meet-and-greets.

 

[PhotoDave219]

The last top shelf guy they had was Craig Dezern in the late 80s/early 90s ... and we all know what happened to him: Disney bought him and brought him aboard.

That was a smart strategy back then. It would be a smarter one today (is that too obvious?)

Of course, that was in the days before Social Media whoring when anyone with a blog could be bought with a shiney trinket and a box of popcorn to spread the message of "Everything is Awesome."

 

[WendyTinkerbell]

Like I said, Heat in six ... but I don't see them winning tonight. Spurs will be pumped on homecourt.

Still going with Spurs in 6...

 

[TalkingHead]

I'm not sure he's much of an influencer at all anymore. Dare I say that you may well have far more influence in today's social media landscape as Kev? Disney pays him no respect. And, as I've said, most fans think he goes easy on the Mouse because of his professed desire to be fair.

The bolded was precisely what I thought, which makes the toothless critiques even more baffling.

He's not Lovable Lou and doesn't get media invites, so it's not like he even has the option of biting the hand that feeds him.

I admire his desire to be fair, if it's based on nothing more than personal principle. Maybe it's harsh to say, but what influence has Yee ever had on the WDW community?

For that matter, you could ask who has any influence in the WDW community today? And what kind of influence do they have?

My own answers: primarily, the people with influence are happy-go-lucky brand defenders who function as corporate mouthpieces. Not all 100% of the time, of course, but largely so.

It's been said before, but the WDW community has never had a galvanizing critic like Lutz. If it did, the Yeti wouldn't have a strobe light pointed at it today.

 

[TeriofTerror]

I'm all for a dress code. Disney actually has a dress code but it is rarely enforced because the ones left to enforce it are turnstyles. There's no way a college kid making $7.25 an hour is going to risk getting screamed at over how someone is dressed.

(Sigh) And unfortunately, I think we all know what would end up happening. There would be lawsuit after lawsuit filed by people suing Disney because their "vacation was ruined" after they were "completely humiliated" by a cast member discreetly requesting that they change into more suitable attire. It wouldn't matter that Disney offered them free clothes to use so that they didn't have to leave or Fastpasses to make up for any inconvenience; this was "the very worst experience of their entire lives" and their children will undoubtedly require years of therapy to recover. I really just want to punch those sorts of people...

 

[WDW1974]

I never found Jason Garcia worthy of any nickname. Indeed, I often referred to him with expletives that I can't write here.

But his replacement? Well, let me bestow upon her an honour. From now on, the new Disney beat writer for the Sentinel shall be known as Soup and Salad Sandra. Feel free to Tweet that to her. And my best wishes on a job that you are defeated in before you ever start.

 

[Skyway]

Looks like Norwegian tourism folks are not as annoyed about "Frozen" being associated with their country as Disney fans are.

http://www.cbsnews.com/news/behind-norways-frozen-windfall-from-disney/

 

[alphac2005]

I'm not sure he's much of an influencer at all anymore. Dare I say that you may well have far more influence in today's social media landscape as Kev? Disney pays him no respect. And, as I've said, most fans think he goes easy on the Mouse because of his professed desire to be fair.

It's a hard wire to balance on. I'd say it's damn near impossible. The best thing Kevin ever did was come up with Declining By Degrees because it so perfectly encapsulated what was happening at WDW (what I termed Walmarting, what his co-hort Al Lutz said was partially the result of Defenders of Mediocrity) ... If you put your ideas, thoughts and opinions out to an audience, then you have to have very thick skin. I don't mind criticism or people disagreeing. The death threats, people attempting to out me and folks lying about me would be something else. But, yeah, you have to be able to take legit criticism and laugh off the crazy stuff.

I really do see you in the same sort of mode that Kevin is in. I don't know how well it will serve you over the long run. Do I believe you are honest in your opinions? Yes (we've had this discussion in private a few times). But your love for the Asian parks, which I share, will only make the folks in Celebration Place/TDO happy so long as you also like $48 Star Wars breakfasts and upcharge events. The reality is one can't be a TDR Lifestyler while living in the USA and Disney cares about its domestic product most of all (certainly far more than over a resort that they don't even own one percent of). I don't know what your tipping point would have to be to start telling your flock that they should stay away from WDW. ... I know I can't in good conscience tell people they should take WDW vacations any more. I am not like a handful of friends who have totally given up on the place. But I would tell people to take Florida vacations and visit Cape Canaveral and Busch Gardens and Aquatica and, obviously, UNI and IOA (which you still haven't done) and maybe do 2-3 days of WDW parks or, perhaps, just the great water parks. But I don't have a blog devoted to Disney travel.

At some point, you have to be quite pointed. Kevin may have been before, but has decided against that. And I believe that's why he is viewed as largely irrelevant. Someone should strike out aggressively from the blogosphere for being blacklisted or denied access because they deviate from the corporate talking points, but no one does. Really, though, once the company has turned its back on you because you dared give your audience an honest assessment that paints the company in less than glowing terms what exactly do you have to lose? When even folks from the DISBoards crowd are tired of spinning precisely what Disney wants (like a script ... like Aswad does), that just speaks volumes.

I liken him to CNN. CNN decided some time ago that there are two sides to each issue and that they would be in the supposed middle and essentially give two sides a platform on whatever given topic. The problem is that many things are rooted in fact and actually don't have two sides, rather fact versus fiction. I guess that's why the only thing that I've watched on there in years are the two shows that they have that have nothing to do with "the news." (I can say, however, that many friends work for CNN and Turner and they are an outstanding employer.... although they work 'em a tad bit to much.) I think that Kevin Yee has taken the same approach trying to thread the needle, but it doesn't work nor does it make about anyone happy.

 

[Goofyernmost]

Maybe class covers it but I see it as respect. Respect for yourself, Respect for the institution you are visiting, and Respect for others around you.

In my mind, it is the same thing. When you have class you have self-respect in my view. The problem is that those that offend in that manner think that they are rebels and just being cool and who doesn't like cool. Tough nut to crack.

 

[alphac2005]

It was disgusting, Dave. And what's worse is I think within five years you are looking at those chains being downsized almost to the point of non-existence. They were killed by the 2008 collapse and the death of the American middle class. They are doing so many desperate things because the families who would come in on Friday night and drop $50-100 largely don't exist anymore. Burgers on the menu ... buy one meal, take a second home. Those are death throe moves ... and I won't even start talking about the management. Sick.

They've killed their Olive Garden and Red Lobster all in one building concept, although it seemed very clear that was going to happen before Darden sold off Red Lobster. Nothing says it's frozen from a truck or thrown in a microwave like combining the two kitchens of two supposed sit-down restaurants. The Dardens of the world are getting killed by fast casual and they well should be. You can get chicken tacos at Chipotle with a much higher grade (and socially conscience) product for less than seven dollars, or get a grilled chicken** platter meal for several more dollars at Chili's. ** You know, that grilled chicken that was grilled before it hit the restaurant and simply reheated. The writing has been on the wall for years with these chains and they chose to not be proactive. It should be noted, though, that Darden not only has dealt with the changing dining demographics, but also the fact that they have vultures that have decided that they want to cash out and pick the company apart to line their pockets. Darden wouldn't be as damaged right now if it wasn't for the activists (formerly known as corporate raiders).

 

[lazyboy97o]

(Sigh) And unfortunately, I think we all know what would end up happening. There would be lawsuit after lawsuit filed by people suing Disney because their "vacation was ruined" after they were "completely humiliated" by a cast member discreetly requesting that they change into more suitable attire. It wouldn't matter that Disney offered them free clothes to use so that they didn't have to leave or Fastpasses to make up for any inconvenience; this was "the very worst experience of their entire lives" and their children will undoubtedly require years of therapy to recover. I really just want to punch those sorts of people...

Filing a law suit isn't the same as winning a law suit. There is no right to dress.

 

[ABQ]

Spirited NBA Finals Musings:

OK, so I was right about tonight's game ... but how the hell do you let the AC die in Game 1 of the NBA Finals? Bad all around ...

Aw pshaw, professionals don't require AC. Play it like the olde timey teams in the good ol' days. Celtics/Lakers 1984. You may recall Ye Olde Boston Garden never had air conditioning. Bruins playoffs in the fog due to melting ice and this blurb from the 1984 NBA finals

Meanwhile, the 37-year-old Abdul-Jabbar showed his age in the sweltering heat. How hot was it in the Garden? "I suggest," Kareem said, "that you go to a local steam bath, do 100 pushups with all your clothes on, then try to run back and forth for 48 minutes. The game was in slow motion. It was like we were running in mud."

 

[ScoutN]

Oxford is a WONDERful place, oozes history and academics. I read there ... I also had my first (and only) Krispy Kreme donut there while hearing all about STD prevention amongst the gay community ahead of the 2012 Olympics. Fun Times!!!

YES IT IS! I have been putting off invites twice a year for three or so years now to attend a week of lectures there. I really should get around to attending.

 

[Sabriel]

Aw pshaw, professionals don't require AC. Play it like the olde timey teams in the good ol' days. Celtics/Lakers 1984. You may recall Ye Olde Boston Garden never had air conditioning. Bruins playoffs in the fog due to melting ice and this blurb from the 1984 NBA finals

Meanwhile, the 37-year-old Abdul-Jabbar showed his age in the sweltering heat. How hot was it in the Garden? "I suggest," Kareem said, "that you go to a local steam bath, do 100 pushups with all your clothes on, then try to run back and forth for 48 minutes. The game was in slow motion. It was like we were running in mud."

That's just it though, no one has had to play in conditions like those in a long time, and they muddled through it. Also, anyone who has had cramps like the ones Lebron seemed to be having knows they are no joke. They hurt a lot and will render you immobile. I don't know how much that had to do with the lack of A/C, but I do think it played a part for everyone, much like playing the USMNT playing soccer in a snow storm, though obviously to a lesser extent.

 

[ParentsOf4]

I didnt see where Kevin offered any evidence to support that Disney is always spending money on upkeep, maintenance and rehabs.

Globally, Disney spends a ton of cash on maintenance, with the largest amount going to WDW.

The question is whether Disney spends enough.

Recalling what CFO Jay Rasulo said about investments in 2011:

“Five years ago or so we used to be pretty demonstrative about $1 billion number being an ongoing level without special projects added to it.

"You have to remember though that in those five years in the capital projects that we have put in the ground, which each have their own growth strategy, each is filling in different parts of the portfolio, when they are back on board they all need ongoing FF&E and maintenance capital to keep them going.​

"So I would say that that $1 billion number is low.”​

With baseline capex at $1B back in 2006 along with inflation and the additional projects brought online since 2006, today’s Furniture, Fixtures and Equipment (FF&E) may very well be over $2B. Most of today's "investments" consist of basic maintenance, not "special projects". Whether $2B is enough for maintenance depends on what you think about quality at the parks.

Looking more closely at 2013, total company investments (which includes FF&E) were $2.8B. With FF&E approaching $2B, total annual revenue at $45B, and Parks & Resorts (P&R) revenue at $14B, it's apparent that the budget for all "special projects" (e.g. Pandora) being shared across all company segments is comparatively small. In 2013, Disney spent 6% of total revenue and 20% of P&R revenue on "investments", most of that simply on maintenance.

For comparison, in 1974 with company revenue at $430M and P&R revenue at $280M, total investments were $67M, 16% of company revenue and 24% of P&R revenue. The 1970s were a difficult period for Disney, with an energy crisis severely impacting travel, and they had cut back tremendously on investments in an effort to keep the company afloat.

In 1983, the year after Epcot opened, Disney invested heavily in P&R. Corporately, there was a sense that WDW was the Disney brothers final legacy and a real commitment to seeing it turned into a complete resort. Until Eisner joined in 1984, Disney effectively had become a theme park company. With company revenue at $1.3B and Parks & Resorts (P&R) revenue at $1.0B, total investments were $418M, 32% of company revenue and 42% of P&R revenue.

In 1994, Disney was in the middle of the "Disney Decade". With company revenue at $10.1B and Parks & Resorts (P&R) revenue at $3.5B, total investments were $2.9B, 29% of company revenue and 83% of P&R revenue.

In 2004, P&R still was suffering from a post-9/11 economy. (Things began to improve at the parks in 2005 with the introduction of the less expensive Magic Your Way ticket and Disney's Magical Express.) With company revenue at $30.8B and Parks & Resorts (P&R) revenue at $7.8B, total investments were $1.4B, 5% of company revenue and 18% of P&R revenue.

(In case anyone wonders why I picked these years, I wanted to do 10-year increments but don't have complete data for every year. These years are approximately 10 years apart.)

As has been true ever since DLR opened in 1955, the lion's share of investments have been in P&R. For example, in 2013, Disney spent $1.14B domestically plus another $970M internationally in P&R, for a total of $2.11B. (Recall that total investments for the year were $2.8B.) The resorts really are tremendous physical assets requiring constant capital.

What sticks out is the jump in total revenue after Eisner joined in 1984. When Eisner was brought on board, Disney's only successful segment was P&R. After that, the company as a whole began firing on all cylinders. Eisner (along with significant contributions from others) really did lead the effort to save Disney.

Still, Eisner invested heavily in the theme parks. Under Eisner, there were several years when annual investments exceeded $5B. This was in absolute dollars. In inflation-adjusted dollars, this was over $8B. Those of us who saw WDW expand tremendously during the "Disney Decade" know that a lot was spent in Orlando.

Just imagine what could be happening at WDW today if Disney was investing closer to $8B annually.

What also sticks out is that P&R investments have plummeted. Prior to 9/11, Disney was not afraid to spend big at the theme parks. Understandably, P&R investments collapsed in the post-9/11 economy, when travel and all vacation destinations were adversely impacted. However, it appears corporate attitudes never changed as the economy recovered.

When it comes to P&R investments, Disney's current senior executive management still operates like it's 2002.

 

[rael ramone]

Globally, Disney spends a ton of cash on maintenance, with the largest amount going to WDW.

The question is whether Disney spends enough.

Recalling what CFO Jay Rasulo said about investments in 2011:

“Five years ago or so we used to be pretty demonstrative about $1 billion number being an ongoing level without special projects added to it.

"You have to remember though that in those five years in the capital projects that we have put in the ground, which each have their own growth strategy, each is filling in different parts of the portfolio, when they are back on board they all need ongoing FF&E and maintenance capital to keep them going.​

"So I would say that that $1 billion number is low.”​

With baseline capex at $1B back in 2006 along with inflation and the additional projects brought online since 2006, today’s Furniture, Fixtures and Equipment (FF&E) may very well be over $2B. Most of today's "investments" consist of basic maintenance, not "special projects". Whether $2B is enough for maintenance depends on what you think about quality at the parks.

Looking more closely at 2013, total company investments (which includes FF&E) were $2.8B. With FF&E approaching $2B, total annual revenue at $45B, and P&R revenue at $14B, it's apparent that the budget for all "special projects" (e.g. Pandora) being shared across all company segments is comparatively small. In 2013, Disney spent 6% of total revenue and 20% on P&R revenue on "investments", most of that simply on maintenance.

For comparison, in 1974 with company revenue at $430M and Parks & Resorts (P&R) revenue at $280M, total investments were $67M, 16% of company revenue and 24% of P&R revenue. The 1970s were a difficult period for Disney, with an energy crisis severely impacting travel, and they had cut back tremendously on investments in an effort to keep the company afloat.

In 1983, the year after Epcot opened, Disney invested heavily in P&R. Corporately, there was a sense that WDW was the Disney brothers final legacy and a real commitment to seeing it turned into a complete resort. Until Eisner joined in 1984, Disney effectively had become a theme park company. With company revenue at $1.3B and Parks & Resorts (P&R) revenue at $1.0B, total investments were $418M, 32% of company revenue and 42% of P&R revenue.

In 1994, Disney was in the middle of the "Disney Decade". With company revenue at $10.1B and Parks & Resorts (P&R) revenue at $3.5B, total investments were $2.9B, 29% of company revenue and 83% of P&R revenue.

In 2004, P&R still was suffering from a post-9/11 economy. (Things began to improve at the parks with the introduction of the less expensive Magic Your Way ticket and Disney's Magical Express in 2005.) With company revenue at $30.8B and Parks & Resorts (P&R) revenue at $7.8B, total investments were $1.4B, 5% of company revenue and 18% of P&R revenue.

(In case anyone wonders why I picked these years, I wanted to do 10-year increments but don't have complete data for every year. These years are approximately 10 years apart.)

As has always been true ever since DLR opened in 1955, the lion's share of investments have been in P&R. For example, in 2013, Disney spent $1.14B domestically plus another $970M internationally in P&R, for a total of $2.11B. (Recall that total investments for the year were $2.8B.) The resorts really are tremendous physical assets requiring constant capital.

What sticks out is the jump in total revenue after Eisner joined in 1984. When Eisner was brought on board, Disney's only successful segment was P&R. After that, the company as a whole began firing on all cylinders. Eisner (along with significant contributions from others) really did lead the effort to save Disney.

Still, Eisner invested heavily in the theme parks. Under Eisner, there were several years when annual investments exceeded $5B. This was in absolute dollars. In inflation-adjusted dollars, this was closer to $8B Those of us who saw WDW expand tremendously during the "Disney Decade" know that a lot was spent in Orlando.

Just imagine what could be happening at WDW today if Disney was investing closer to $8B annually.

What also sticks out is that P&R investments have plummeted. Prior to 9/11, Disney was not afraid to spend big at the theme parks. Understandably, P&R investments collapsed in the post-9/11 economy, when travel and all vacation destinations were adversely impacted. However, it appears corporate attitudes never changed as the economy recovered.

When it comes to P&R investments, Disney's current senior executive management still operates like it's 2002.

As I posted in another thread, they seem to think reinvesting in their parks (whether their workforce or in this case upkeep in general) is burning their capital and repurchasing 8 billion worth of their own shares with a 21.7 P/E somehow isn't.

 

[tribbleorlfl]

It was disgusting, Dave. And what's worse is I think within five years you are looking at those chains being downsized almost to the point of non-existence. They were killed by the 2008 collapse and the death of the American middle class. They are doing so many desperate things because the families who would come in on Friday night and drop $50-100 largely don't exist anymore. Burgers on the menu ... buy one meal, take a second home. Those are death throe moves ... and I won't even start talking about the management. Sick.

FWIW, those families still largely exist, it's just that the Great Recession taught them to be more discriminating with that $50-$100. They're demanding fresher ingredients and higher quality meals, something Darren is not capable of delivering with their current size and structure.