WDW to Raise All Buffet Prices By Almost 50%?

[Disneyhead'71]

I have posted this elsewhere but I think its valid here.

My DD is a marketing major and in everyone of her classes it is preached that marketing needs to be targeted at the top earners. Since the economic collapse the middle class is dwindling and have little deposable income left. So in that spirit what TWDC is practicing what is being taught with all the upcharged events, etc. The dining costs are just a reflection of a new economy and they are trying to find out how elastic their price point is. Evil, but true IMHO. I've linked the video her professor used in class. Its a bit Bernie Sandersish, but it made her point and no this isn't a left wing moon bat of a professor. She is actually just very realistic and practical when it come to the subject she is teaching. I have to say my DD was stunned by her professors attitude but now after three years in her major she also realizes its the new reality.

Time to bring back the Unions.

 

[gmajew]

The only way the buffets even make sense is if you plan on eating them out of house and home. If you eat normal portions, they make absolutely no sense from a food quality perspective. It's all about the characters.

Have you seen what people do at these things.... They fill plastic bags with deserts and snacks for later... They take plates with enough food for 10 people back to the tables... it is actually really disgusting...

 

[ford91exploder]

I don't see how that follows. Do companies that are going out of business typically raise prices significantly? That would be... odd. They generally would be lowering prices to get whatever then can before they shut their doors.

Now, Disney not investing much in the parks -- building less, cutting staff and maintenance, offering less customized stuff like the napkins -- that is more (in theory) like a business that is failing. Not the raising prices because demand outstrips supply.

In reality price increases in conjunction with quality cuts is one of the FIRST signs of a company in trouble as they are trying to raise cash using existing revenue streams. But it's important to realize that its the CONJUNCTION of the two which is an indicator of trouble not one or the other.

 

[Disneyhead'71]

Over entitlement at its finest right here. I would love to go to Bora Bora for a week on an over water bungalo. $15k is out of my price range. I deal with it and move on with my life. I dont blame the resorts for pricing out middle class, I dont carry an attitude like Bora Bora owes me the opportunity to go. Same as Disney. They can charge what they want. Either people can afford to go and go or not. But don't blame Disney for how much it charges. And last time I checked, character buffets is not the only place to eat when there. Ooohhh but there is that entitlement again. Disney owes me the opportunity to eat crap food with characters.

What about those of us that can easily afford it but think Disney has lost their freakin' mind to charge such a ludicrous price for "crap food with characters"?

I'm not angry about it, or even really care, (my kids are 15 & 20), we haven't done a character meal in a decade. I just think it's a really bad business model that has the potential to damage WDW and the brand.

But you go ahead and keep cheering as the brain trust flies the place into the side of a mountain.

 

[gmajew]

In reality price increases in conjunction with quality cuts is one of the FIRST signs of a company in trouble as they are trying to raise cash using existing revenue streams. But it's important to realize that its the CONJUNCTION of the two which is an indicator of trouble not one or the other.

Disney in not yet in trouble... they are just pushing to far at this stage.

This along with the failed test for the pm hours premium is going to backfire on them...

 

[Disneyhead'71]

They need to charge more honestly.

So you're saying that disneys increase of prices is affecting your rights as a customer? What rights are those exactly? Im curious

They are absolutely NOT affecting right to chose whether to to give DisCo. a lot of money, a little money, or no money at all.

The ultimate right of the consumer.

 

[ford91exploder]

Disney in not yet in trouble... they are just pushing to far at this stage.

This along with the failed test for the pm hours premium is going to backfire on them...

Ordinarily I'd agree, But WHY is Disney pushing such massive customer facing cuts while simultaneously doubling down on stock repurchases when the stock is near it's historic high. It would be one thing if their had been an organized 'bear raid' on Disney stock forcing it down below price supports, But that's not the case here.

From a Business PoV none of these moves make sense given Disney's stated narrative.

 

[ford91exploder]

What about those of us that can easilyafford it but think Disney has lost their freakin' mind to charge such a ludicrous price for "crap food with characters"?

I'm not angry about it, or even really care, (my kids are 15 & 20), we haven't done a character meal in a decade. I just think it's a really bad business model that has the potential to damage WDW and the brand.

But you go ahead and keep cheering as the brain trust flies the place into the side of a mountain.

Yep no one set the altimeter at the airport before departure.

 

[gmajew]

Ordinarily I'd agree, But WHY is Disney pushing such massive customer facing cuts while simultaneously doubling down on stock repurchases when the stock is near it's historic high. It would be one thing if their had been an organized 'bear raid' on Disney stock forcing it down below price supports, But that's not the case here.

From a Business PoV none of these moves make sense given Disney's stated narrative.

Stock repurchases is to inflate the stock price would be my guess.

The cuts they are making in my eyes are them trying to get ahead of the storms that are coming with new labor rates, and a the weak overall market conditions.

I have heard many many companies doing the same thing right now.... could it be election fears?

 

[ford91exploder]

Stock repurchases is to inflate the stock price would be my guess.

The cuts they are making in my eyes are them trying to get ahead of the storms that are coming with new labor rates, and a the weak overall market conditions.

I have heard many many companies doing the same thing right now.... could it be election fears?

Nothing inherently evil about stock repurchases for example My company is always buying back stock but I'm in the tech sector so it's re-issued to employees as incentives. The problem is Disney is putting almost their entire free cash flow into stock repurchases the only possible reason as you say is to inflate EPS why would Disney want that???.

Think about this Disney does not even have 30 days of cash on hand, One would think that Disney would be building up a cash reserve especially in these days of terrorism where events beyond their control could disrupt their business for months or DC mandates compensation changes they would have a buffer.

Nothing that Disney is doing at the moment makes any sense from a business perspective.

 

[OliveMcFly]

Have you seen what people do at these things.... They fill plastic bags with deserts and snacks for later... They take plates with enough food for 10 people back to the tables... it is actually really disgusting...

 

[Communicore]

Are the meals still going to taste the same? I was at Pop last week, and the portions have shrunk, too!!!

 

[Nubs70]

They love us. They really love us!

(Some much more than others!)

Channeling your inner Sally Field??

 

[Nubs70]

I don't see how that follows. Do companies that are going out of business typically raise prices significantly? That would be... odd. They generally would be lowering prices to get whatever then can before they shut their doors.

Now, Disney not investing much in the parks -- building less, cutting staff and maintenance, offering less customized stuff like the napkins -- that is more (in theory) like a business that is failing. Not the raising prices because demand outstrips supply.

WDW is acting like a company looking to sell. Drive up EBITDA by cutting expenses and raise prices. Sell for 10x EBITDA.

 

[asianway]

WDW is acting like a company looking to sell. Drive up EBITDA by cutting expenses and rain prices. Sell for 10x EBITDA.

Ive said that several times was told to get my shine box.

 

[Nubs70]

Ive said that several times was told to get my shine box.

I think for some he uses that phrase as a term of endearment

 

[asianway]

I think for some he uses that phrase as a term of endearment

Nah, wasnt Dave - more a euphemism

 

[Hakunamatata]

Stock repurchases is to inflate the stock price would be my guess.

The cuts they are making in my eyes are them trying to get ahead of the storms that are coming with new labor rates, and a the weak overall market conditions.

I have heard many many companies doing the same thing right now.... could it be election fears?

Could it be the economy is not as great as we have been led to believe. I think it's yes to both.

 

[JassiSidhu2000]

What foods are in the buffet ? Exotic meats ?

 

[xdan0920]

Have you seen what people do at these things.... They fill plastic bags with deserts and snacks for later... They take plates with enough food for 10 people back to the tables... it is actually really disgusting...

Related story for the sake of thread levity...

My Grandfather was notorious for doing this ^^^ except, he wouldn't stuff things in bags or anything. He would just grab a napkin and wrap up a roll, donut, muffin, and jam it right in his pocket. He paid for all he could eat, and no one specified a time limit. So he figured, this is my pocket muffin. Always cracked us all up. FWIW, he was a pretty successful guy and could buy many muffins if he was so inclined. He is actually the reason I have DVC at all, he was the original purchaser. So basically he left me a $1000 a year bill...

Anyway, great guy, and not disgusting. lol.