DCA Closings and WDW

Another Voice

Charter Member of The Element
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Sorry folks – a long train ride this morning gave me far too much time to write…

As has already been posted, the Monodavi Restaurants and Wolfgang Puck’s Avalon Cove Restaurant at California Adventure have closed. These closings have been in the works since summer and rumors indicate that more will follow (get your free half-tortilla while you can). This marks the formal start to the dismantling the park as it was originally conceived. Hopefully, it also marks the start of the process to save this park and to prevent similar mistakes from being made at WDW.

Someone pointed to a couple of other sites that had this news as well, and it’s obvious that the company is trying to line up all the camels around the latest Disney Spinner – so let me start by de-spinning some of the news. First, the closings came because DCA’s attendance is drastically below projections* and the restaurants themselves were financial disasters. Monodavi is taking an immediate loss of $12 million on its investments and additional huge operating losses haven’t been disclosed yet but have seriously impacted Monodavi’s financials. It’s an awful lot of money to loose on a restaurant. Puck was also hit by the problems and by the less-than-high-income crowd that the discounted tickets attracted. The Approved Corporate Spin is hinting that Disney wasn’t happy with the service levels at the restaurants – that comment is a "non-truth" to cover up the financial problems. Disney’s own high-end restaurants, Soap Opera Bistro and Napa Rose, have been either closed or had their hours severely reduced due to attendance patterns as well. But the far bigger problem – and the one that WDW faces– is the business philosophy that put two branded restaurants in middle of a Disney park.

Both Downtown Disney and the Boardwalk at WDW are really shopping malls; Disney is leasing space to outside companies that set up shop and run there own businesses. It’s proving profitable for Disney: they get the expansion and increased foot traffic, someone else pays for the building and operation. The idea sprung up that maybe the parks should be operated the same way. After all, aren’t the parks just like shopping malls but just with rides? But for the spaces inside the park to be sold, Disney had to give up the same thing that they’ve given up at Downtown and Boardwalk – the illusion that the restaurant was “Disney”. No brand name company is going to pay Disney rents without the ability to market itself rather than The Mouse. Just look at the logos plopped all around Downtown Disney – you know you’re eating at Rainforest Café or McDonalds or buying Legos.

The concept was first tried at Animal Kingdom, but “traditional” forces within the Company limited how far the plan would be taken. A huge non-Disney brand restaurant would be built at the gates of the park (with the agreement that Disney wouldn’t build a competing restaurant inside) and the McDonalds would be themed like a traditional Disney establishment. Both places tend to do well and it seemed to show that the concept worked. With WDI removed from developing the California Adventure project, the “shopping mall concept” was given room to blossom.

Both Monodavi and Puck were selected because those brands would appeal to the high-income, free-spending, so-trendy-we-glow audience that Disney was panting after with California Adventure. They were also selected because they overcame the “negative” impact of the Disney brand on the well-heeled (the whole attempt to de-Disney “Disney’s California Adventure” would make a great book). Walking in either restaurant, you were hit over the head with the message that THIS ISN’T DISNEY – the atmosphere, the prices, the menus, the tone. You were in for a Monodavi or a Wolfgang experience, the fact that it was located in an amusement park was something they worked very hard to overcome.

The guests, however, had a different idea. When people go to a Disney theme park, they want to go to a Disney theme park. They are not looking a trip to the Napa Valley, they are not looking for a pseudo-Sunset Blvd. experience. They want to see Disney. The free spending elite never showed up because the place is still an amusement park and the average guests were put-off by the we’re-too-good-for-you-attitude that pervades the places (and a lot of DCA). The only regular customers were local annual pass holders who spent less than half the expected per-guest amount the restaurants had been promised by Disney. Worse yet, these were the same guests that tended to deride the places because they weren’t “Disney” or offer a big enough AP discounts. Faced with these problems from Day One, both companies have been looking to bail since Memorial Day and Disney finally gave in to their demands (and to avoid some stiff performance penalty payments to the participants).

This “Your Name Here” concept is also heading to Walt Disney World. It’s long been “rumored” that a major food facility in Future World at Epcot is being shopped around, there are more McDonald’s popping up in the parks, and does anyone really think all that work on Main Street was just to improve traffic flow? Expansion at Animal Kingdom has been delayed for years to work out a deal to bring in another brand to actually create the new area (I wonder how many tiny plastic bricks it takes to build a unicorn…). And what exactly is ‘Ice Station Cool’ doing in Epcot anyway?

All of the parks have always had leasers. But the difference between then and now is that all of the establishments maintained a “Disney” atmosphere. Almost all of the restaurants in World Showcase are not Disney run, but you would never know it by visiting. California Adventure’s experiment was the first to create other branded locations within a Disney park. Where the trend goes from here is unknown. Disneyland management is trying to dismantle the “mall” concept at DCA over some objections from Burbank, and the future of Florida is up in the air at the moment. The new battle is between those that claim the restaurants were themselves were at fault, or rather the concept of non-Disney operations inside the gates is to blame.

I hope that the right leason will be learned and that the failure of California Adventure may help prevent the malling of WDW.


* a Disney spokesman confirmed to the Los Angeles Times that the average daily attendance the week before Sept. 11 was only 4,500 guests. That is at the level prior to the summer discounts.
 
Well, Spin or no spin, such a quick failure, to me seems to garauntee that we won't see too much of this in the world. On the other hand, WDW is different. AV, any word on how this plays with the current dissatisfaction with the shopping Mall king, or has the new Mike already disappeared?
 
Thanks AV for the timely analysis...you showed us that there is truth to both assertions, namely that the two new restaurants were not living up to Disney standards in service or food, and that the two proprietors were immensely disappointed in the plain numbers of guests visiting the parks and places.

Anybody else been reading these announcements over the past week or so, and not been feeling punch drunk from the lurching, disastrous moves made by Ei$ner and co? If not, please speak up! Tell me why the Japanese are enjoying the Disney Revival at TDS, while we stand here battered and bruised from the right-before-our-eyes dismantling of the Disney Standard Par Excellence.
 
Anybody else been reading these announcements over the past week or so, and not been feeling punch drunk from the lurching, disastrous moves made by Ei$ner and co?
The only issue I have with that statement is the time frame involved.

September 11th was an unforesseable upset to all businesses; the announcements over the past week or so have to be filtered through that reality. Although I'm not convinced that all of the very recent decisions have been the best ones possible, even given the circumstances, I don't see the recent moves as the foundation of the problem.

What I'm so disappointed in is longer term decisions. The problems with DCA may have come to a head within the last three weeks, but they've been brewing since the project started. Folks have had concerns for years that the decisions made while putting the park together would end up creating a park that just didn't have the pixie dust to attract guests. And all data suggests that is true, and was true even before 9-11.

The announcements made this past week are troubling, but they are the fruits of the seeds Disney decided to plant.

Jeff
 

Simply put, I think this is a good thing. They've had their noses rubbed in a very simple fact: When people want Six Flags, they go to Six Flags. When they want Disney, they go to Disney. The strength of the message from DCA is beyond question, and I think it will be strongly addressed. Fixing the park will be such a large undertaking, I don't expect to see everything fixed right away, but it'll be fixed over time.

The real question is, then, what will we see? For starters, I'd like to see the Studio section reinforced with a real TOT (not a butchered one) - kind of silly having a "Hollywood" area so close to the real thing, but the theming can work. The "Monterey"-like area of "Golden State" is okay. Paradise Pier should be cut way back - they can keep a small section, basically the coaster, maliboomer, and sun wheel. The "Pier" feel is okay (the lake has a wave generator that makes breakers that splash on the rocks by the Screamin' launch area - it's actually pretty nice), but most of the rides are off-the-shelf crap. Everything past the maliboomer should be cut out and the area re-themed to a Disney-ish theme (maybe do something to blend with the Grizzly Peak area). The stupid swings (the Golden Zephyr and Orange Stinger), Mulholland Madness, Jumpin' Jellyfish, should all be sent over to Knott's and replaced with real Disney attractions. Maybe they can sort through their 20K lagoon options and use the runner-up for DCA. God knows, they've got plenty of good ideas. They should see from DCA that it's about time to implement some of them.

Gary
 
The strength of the message from DCA is beyond question
I hope you are right. I assume they are well past the self denial of bad weather, sluggish economy, and the dreaded internet and firmly into the “how could we have been so stupid” stage. But aren’t more sixflags rides headed to BugTown, and the next major attraction still most likely to be a second class ToT. I'm not sure what these messages are?

If they’ve learned they shouldn’t abandon time-honored standards than this indeed would be a tin lining. I hope it prevents them from making the same incremental mistakes elsewhere. However, the amount of money that will be diverted from DL/WDW to fix DCA, just to get a reworked park that will never quite be optimum, makes it hard to find any silver anywhere.

On the original topic: it still seems very possible that they could think these "external" restaurants were just a victum of circumstance. That if the park would have attracted enough quests they would have succeded. And they might be right. I guess we'll have to keep our eye on WDW to see the outcome.
 















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