Dining Plan Increases Punish Educators?

[timmac]

...Last quarter, right in the heart of this recession, they still posted an almost ONE BILLION dollar profit, of which almost half came from the theme parks. Is one billion not enough? How is making almost one billion tough?...
etc etc

I have to disagree a bit here. Businesses are businesses, and just offering up the one billion dollar figure as a number by itself really isn't very illuminating.

A billion dollars sitting in the bank account of one individual is a lot of money to just about anyone. But what is it to a corporation employing tens of thousands of people and having several million shares of it's stock being publicly traded? Not nearly as big of a number. Don't get me wrong, I haven't looked at all the numbers close enough, nor am I expert enough to really say what that means in a bigger picture sense.

Much as I don't like corporate "greed" of any kind, it's an unfortunate reality of trying to run a profitable business (to a point, it can also backfire of course). Either way, I think it's a bit naive to interpret much from the "one billion" figure that's been thrown out, without appropriate context.

 

[k5jm]

I think what Pete was saying that Nikki agrees with is if I go to O'hana's on Dec 31st or January 5th I am getting the same salad, the same Skewers, the same potatoes and the same bread pudding.

in Texas, the Attorney General calls this gouging.

if Gasoline costs $2.00 one day and then because a storm hits and a gas station starts charging $5.00 because they know that item is hard to get or because "they know they can sell a gallon for that price," that store would be fined to death and sued out of existence!

There is no difference in what WDW is doing and the slime that gouge people for no other reason than to squeeze out more money and take advantage of those people.

Maybe WDW should have its food service regulated. A glass of milk there IS more than a gallon of Gasoline!

 

[WaltD4Me]

in Texas, the Attorney General calls this gouging.

if Gasoline costs $2.00 one day and then because a storm hits and a gas station starts charging $5.00 because they know that item is hard to get or because "they know they can sell a gallon for that price," that store would be fined to death and sued out of existence!

There is no difference in what WDW is doing and the slime that gouge people for no other reason than to squeeze out more money and take advantage of those people.

Maybe WDW should have its food service regulated. A glass of milk there IS more than a gallon of Gasoline!

I'm not defending Disney, but you do see gas go up during holiday weekends in the summer because they know demand is going to go up and there are no fines or law suits over that. This is more what Disney is doing, rather than gouging due to a disaster. And as someone else said, you don't have to get the dining plan, most people have to buy gas.

One of the things that bothers me though, is that with the gas, if they raise the price in anticipation of demand and then the demand falls or isn't what they thought it would be, the price comes down. You don't pre-pay for gas like you do the dining plan. So if you pre-pay for the DDP and then the peak season really isn't so peak, you don't pay less, Disney doesn't refund you any money, even if attendance falls off and the demand isn't high, you are still paying the same extra price.

 

[Ava]

On the dining board, a couple of us speculated that maybe Disney is deliberately looking to reduce the popularity of the basic dining plan, perhaps with an eye towards eliminating it altogether. That would explain the price hike and the strange omission of a refillable mug from the basic plan when both the quick service and deluxe plans include it. I wouldn't be at all surprised if, in another year or two, the basic DDP is gone, the quick service plan is priced at what we used to pay for the basic plan (and probably used for the free dining promo across all resort levels), and the deluxe plan is more expensive (of course) but more-or-less unchanged to continue to appeal to the less budget minded who like the "all inclusive" feel.

This is an interesting theory, and I can definitely see it happening. The basic DDP never appealed to me because we prefer to eat 3 real meals per day. With the basic DDP we'd either end up purchasing a CS meal OOP each day, or trying to use our snack credits to make a breakfast and ending up unsatisfied. (I know a lot of people like just a muffin or cinnamon roll for breakfast, but we need something a bit more substantial to "fuel up" for a morning in the parks.) It also makes no sense that the basic DDP is the only plan that doesn't include a refillable mug. I could see if only the Deluxe plan included it, but for the lowest & highest plan to include something that the middle plan does not makes no sense.

I've never used any of the dining plans, but from reading about them the QSDP & DxDDP are both more appealing to me than the basic plan. I like the flexibility of the Dx plan, and the fact that you get 3 full meals per day. The QS plan is good for those who don't like to eat at TS every day; we did this on our last trip, only eating at TS every other night or so. And they both include a refillable mug, which we'd buy any way.

 

[FireDancer]

in Texas, the Attorney General calls this gouging.

if Gasoline costs $2.00 one day and then because a storm hits and a gas station starts charging $5.00 because they know that item is hard to get or because "they know they can sell a gallon for that price," that store would be fined to death and sued out of existence!

There is no difference in what WDW is doing and the slime that gouge people for no other reason than to squeeze out more money and take advantage of those people.

Maybe WDW should have its food service regulated. A glass of milk there IS more than a gallon of Gasoline!

Uh, the first legal test for gouging is that the item in question is an essential good or service. Gasoline, regardless of whether you agree or not, is considered an essential good or service. Walt Disney World is not. Gouging also usually involves a civil emergency, not a fluctuation in the normal economic cycle. Gasoline can and does go up when normal demand increases such as holiday weekends. The consumer ultimately determines price unless the good is perfectly inelastic. But, technically, it is the consumer who makes the good perfectly inelastic in almost all circumstances.

 

[lugnut33]

I have to disagree a bit here. Businesses are businesses, and just offering up the one billion dollar figure as a number by itself really isn't very illuminating.

A billion dollars sitting in the bank account of one individual is a lot of money to just about anyone. But what is it to a corporation employing tens of thousands of people and having several million shares of it's stock being publicly traded? Not nearly as big of a number. Don't get me wrong, I haven't looked at all the numbers close enough, nor am I expert enough to really say what that means in a bigger picture sense.

Much as I don't like corporate "greed" of any kind, it's an unfortunate reality of trying to run a profitable business (to a point, it can also backfire of course). Either way, I think it's a bit naive to interpret much from the "one billion" figure that's been thrown out, without appropriate context.

I'll give it to you straight:

The Walt Disney Co. said this afternoon that profit fell 26 percent during its third fiscal quarter, as the global recession continued to squeeze spending on everything from theme parks to television advertising.

The company said it earned $954 million during the three months that ended June 27, down from nearly $1.3 billion during the same period a year ago. Total revenue sank 7 percent to $8.6 billion.

Excluding one-time charges, Disney said it earned 52 cents a share, narrowly topping Wall Street estimates.

Disney's theme parks were among the hardest-hit segments of the Burbank, Calif.-based company's media-and-entertainment empire.

Operating profit in the company's Parks and Resorts unit sank 19 percent to $521 million on total revenue that was down 9 percent to $2.8 billion -- even with the benefit of the Easter holiday week shifting from March 2008 to April 2009. Disney blamed the slump in part on lower spending at Walt Disney World, where widespread discounts eroded average hotel rates and average ticket prices. Sponsorship income also fell at Disney World.

Disney also cited softness at Disney Vacation Club, its Celebration-based time-share arm, and Disneyland Paris.

On a conference call to discuss the results, Disney executives said attendance at Walt Disney World remained flat with last year's levels, while attendance at Disneyland in Anaheim, Calif., rose 10 percent. The comparisons with a year ago were boosted by the shift of the Easter holiday from March 2008 to April 2009. But guest spending at the two U.S. resorts fell 6 percent for the period.

Attendance could take a hit going forward. Executives said theme-park bookings for the company's fourth quarter are up slightly from the same point a year ago -- but that is with an extra week in the quarter, because of a quick in Disney's fiscal calendar.

When the extra week is stripped out, bookings are running 7 percent behind last year's pace.

So, to make up for that loss they raised ticket prices, raised food prices, removed backs from chairs (quicker table turnover), and have laid castmembers off. However, don't lose sight of the fact they still earned almost a billion in one quarter.

 

[k5jm]

I'm not defending Disney, but you do see gas go up during holiday weekends in the summer because they know demand is going to go up and there are no fines or law suits over that. This is more what Disney is doing, rather than gouging due to a disaster. And as someone else said, you don't have to get the dining plan, most people have to buy gas.

One of the things that bothers me though, is that with the gas, if they raise the price in anticipation of demand and then the demand falls or isn't what they thought it would be, the price comes down. You don't pre-pay for gas like you do the dining plan. So if you pre-pay for the DDP and then the peak season really isn't so peak, you don't pay less, Disney doesn't refund you any money, even if attendance falls off and the demand isn't high, you are still paying the same extra price.

Food is deemed essential by DHS and gouging is in effect at all times (especially against the elderly in Texas) but in times of disaster or need, gouging offenses are met with a heavier hand.

But, i must say that people are at "the World" because they chose to be at "the World."
I must also say that I do buy the $7.00 hot dog at Minute Maid Park when I go to Astros' games.

So the question is, "is WDW only for the 'White Collar' family now?"

 

[Madi100]

in Texas, the Attorney General calls this gouging.

if Gasoline costs $2.00 one day and then because a storm hits and a gas station starts charging $5.00 because they know that item is hard to get or because "they know they can sell a gallon for that price," that store would be fined to death and sued out of existence!

There is no difference in what WDW is doing and the slime that gouge people for no other reason than to squeeze out more money and take advantage of those people.

Maybe WDW should have its food service regulated. A glass of milk there IS more than a gallon of Gasoline!

Usually in situations of emergency, Disney offers up rooms to those in need. They don't raise them sky high, so not a great comparison.

 

[FireDancer]

Food is deemed essential by DHS and gouging is in effect at all times (especially against the elderly in Texas) but in times of disaster or need, gouging offenses are met with a heavier hand.

Food is essential. Food in an amusement park is not. The only way price gouging would come into effect at WDW is in some crazy situation that looks like this:

People are stranded in the park for whatever reason and can not leave.

Disney takes their normal price for food and water and raises it for a captive audience.

Having high food prices when there are plenty of alternatives in the general area is not and never will be gouging, it is a choice to eat in the parks or leave for food. Choosing convenience over price is a consumer choice that will let the provided of the convenient food charge a premium for that convenience. Make no mistake, you are not paying those high prices for the food, you are paying for eating inside a WDW park or on property.

 

[Madi100]

So the question is, "is WDW only for the 'White Collar' family now?"

I would be interested to know the percentage of people that:

- go once in a lifetime
- go only if they can get a good deal (code, free dining)
- go because they love Disney so much and they'd do anything to go.

I never went to Disney as a child. We couldn't afford it. Not only is it expensive once you get there, it's expensive to just get there.

As an adult, I fall into category 3. We are seriously considering building a house. We will have to make it affordable to still be able to travel. Because we thoroughly enjoy our vacations.

People who go once in a lifetime, will save up enough money to go. They will take their trip and at the end have a great time and never want to go back. My sister is an example of this. She had a great time. Her trip was well planned (thanks to me ), and she spent enough she never needs to go back. It wouldn't have mattered how much things cost, she just figured it into the total she needed to save.

Then there are the people who will only go with free dining or a great offer. The raise in prices is something to gripe about, but in the end, they'll just wait for a great deal to come along.

Then there are the die-hard fans. I'm sure over time, Disney loses a few of them, because things just get too high priced for their taste. But, there will always be die-hards that can't wait to plan their next trip. And, every time price increases come about that group will complain, but in the end, most will continue to travel to Disney because it is a superior product.

 

[spaddy]

One thing I know about this change in pricing is that it will force me off site to eat. And as long as I am going off site to eat maybe I should check out Universal or Sea World. I will still stay on site because I own DVC, but the rest of my money might go else where in Orlando.

We generally only spend 2 days in the parks on our week long vacations. The one thing that kept us on Disney property those other days was the dining plan.

I fall into Nicole's #3 category. Does that seem like someone Disney should want to push off site?

 

[lugnut33]

One thing I know about this change in pricing is that it will force me off site to eat. And as long as I am going off site to eat maybe I should check out Universal or Sea World. I will still stay on site because I own DVC, but the rest of my money might go else where in Orlando.

We generally only spend 2 days in the parks on our week long vacations. The one thing that kept us on Disney property those other days was the dining plan.

I fall into Nicole's #3 category. Does that seem like someone Disney should want to push off site?

I guess it doesn't matter, they'll just fill your spot at the restaurant with free dining people.

 

[*NikkiBell*]

I have waited a few days before posting my thoughts on Disney's decision to raise the cost of the dining plans during peak seasons. This was done partially because I was so angry at the decision, but also because I really needed to process my thoughts (and these replies) before putting them into writing. I think I am now ready to do so.

As many of you know, I am a fifth grade teacher and take my job very seriously. I wake up at 5:30 each morning, scarf down breakfast, and drive 45 minutes to my school. I work for an hour and 45 minutes before the kids come in. I frequently work through my lunch period. Once the bell rings at the end of the day, I work a minimum of two more hours. On days of special events like parent-teacher conferences or Back to School Night (some refer to this as "Open House"), my work day is between 12-13 hours long. There are weeks when I total 60-70 hours due to special events or it being the end of the marking period. The expectation that we take work home each night and during the weekends is a societal norm; we don't get paid for it, but it is required. As a result of this and other job-related stressors, a recent study showed that nearly 50% of new teachers leave the profession altogether within the first five years. Why do I do it then, you ask? Because I love my job and wouldn’t trade it in for anything else in the world.

I also love Disney.

I have gone to Walt Disney World close to 20 times since the early 1990s. Since 2004, my boyfriend (or “spousal equivalent,” as I like to call him) and I have purchased some form of a dining plan during our trips. It started with the Silver Plan which included meals, recreation/merchandise. It was awesome! Then Disney decided to change their plan options. We soon purchased the new Premium Package which offered us meals, backstage tours, spa trips, sporting options like parasailing, merchandise, and more. Both of these plans were excellent and a great value. We absolutely loved them!

Then Disney changed their options yet again. We selected the Deluxe Dining Plan which offered only meals --- no tours, no recreation, no spa trips, and no bonuses. We shrugged our shoulders and dealt with that. The plan was still a good value and offered us the opportunity to eat in restaurants that we might not ordinarily pay for out of pocket as did the Premium Package.

Now that Disney is making changes again, I am finding myself very frustrated and slightly defeated. Yes, I do have the choice to purchase a dining plan or not. Yes, Disney is not forcing me to purchase some type of package. I understand all of that. However, raising the cost of food --- a daily necessity --- just because I visit Walt Disney World one week as opposed to another is absolutely absurd. Why should my meal cost double the price of someone who had it a month before? a week before? a day? Why should my parents, who have travel flexibility, pay half the price of the same exact dining plan I get at an inflated cost?

For those of you who say that it does, indeed, cost Disney more to prepare the food during peak seasons because of associated costs related to longer park hours, etc., I’m sorry I just do not buy it. If I travel to the World during Spring Break and buy an entrée at Narcoossee’s, it doesn’t cost them a dime more to prepare it the week after during regular or off-peak season. Imagine a scenario where you eat a meal during what is known as peak season and then a friend visits the very next day during off-season. Why should you pay more? Wasn’t the food from the same shipment as yours?

I realize that my career limits my travel dates. I accept that as a part of the many unjust attributes associated with the profession. I’ll even deal with highly inflated peak season rates for hotels and airfare. I’ve done it for years. I’ve paid $224 for the same flight to Disney that I paid $498 for during a different time of the year. Do I think it is right? No, but I do recognize that is a part of the travel industry.

Just do not expect me to approve or even try to rationalize the fact that Disney is charging more for meals dependent on the time of year I visit. I have frequented restaurants all over the world (again during busy travel times). I’ve never experienced anything like this. There has never been a restaurant that would charge double the price for an entrée as it would during a different time of year. Sure, on Christmas, Thanksgiving, or New Year’s day the menus change. You might have a limited list of entrees. You might not find your favorite dishes that were there before the holidays. You might even be asked to eat from a buffet at what is typically known as a regular sit down establishment. But you will not find inflated prices because you are eating at a “peak time.”

I strongly feel that Disney is making a mistake. Over the past five years, I have noticed a steady decline in terms of customer service, cleanliness within the theme parks, condition and homogenization of merchandise, and overall attitude of the company. Executives are making bad business decisions and turning their noses up at them. They’re closing or altering attractions, restaurants, and stores to make a quick buck. They’re mass producing products that can be bought in the parks and now online. They don’t take into account the concerns of average guests. They are no longer looking at the long-term. I’m sure that this is going to cause a plethora of posts, but let me remind you of the Pleasure Island debacle. You have a large amount of property which was once popular and full of business now a ghost town. What happened? Before someone even argues about the “Celebration Party” disgrace that has been going on near the area to attract guests, please know that I’m referring to the Pleasure Island of the 1990s and early 2000s. The one that had gated entry and advertising that made guests aware of its existence. What is it now? Wasted space. Empty buildings. Deserted walkways. Anyone who even attempts to argue that this was a good business move is seriously mistaken.

In order for Disney to prevent the depressing decline it is now experiencing in profits, it needs to get back to basics. I’m floored when I hear people say that customer service at Universal Studios is better or near what Disney used to be. I think the company needs to start there because that’s a problem. Utilize the cast members you are putting at strategic locations around the parks with laptops and surveys. Make your research department complete honest work and retrieve reliable, true guest feedback. Listen to guest demand based on what they say; don’t make assumptions or a bad decision and then blame it on something they supposedly wanted (i.e. higher prices for buffets, no character dining at LTT, etc.).

In terms of the dining plan and whether or not I’ll be purchasing it in 2010, I’m undecided. I haven’t crunched the numbers yet, but it doesn’t look promising. I looked into the cost of the Deluxe Plan the other day. Kevin let me know that it will be about $71.99. Okay, let’s increase that for peak pricing…close to $80 per day? If that’s the case, Disney better believe that I won’t be purchasing it. When I think about it some more, I would not even get it at $72 a day. That’d mean I would need to spend about $40 on a dinner alone and make up the other $32 somewhere else during the day. Even if I did three table service meals during one given day (which we never do --- our standard is two) I’m not sure if that is realistic. That’d be about $20 per meal including any counter service options.

In case you couldn’t tell, I’m thoroughly aggravated about these changes. I think it’s a bad move in terms of business and guest feedback. What used to be a great deal and value has now become inflated and priced out of so many individuals’ markets. That’s going to be a problem in the long-run and Disney needs to wake up and realize that.

I’m happy to be a teacher. I love my job. I wouldn’t trade it for anything in the world. The fact that Disney continues to screw people like me over is a problem and I am not just talking about teachers. I’m talking about anyone who is unable to go during the “non-peak times of the year” in the Disney bubble. Focusing on my profession though, Disney has already taken away the honored Disney Channel Teacher of the Year Award. They don’t offer any discounts for educators like many competitors do including your standard craft store. They’re drastically cutting back on philanthropic projects related to education. And now they are taking away a great option to eat on property for a decent price. That’s a mistake and I hope that they soon wake up and realize where they’re headed. If they don’t, we can only expect things to continue to decline until someone stands up for change.

 

[spaddy]

I guess it doesn't matter, they'll just fill your spot at the restaurant with free dining people.

Just so I understand. Disney wants to price the Dining Plan so high that no one will pay for it and then they will have to give it away for free? I must have been sleeping during that day in Economics.

 

[MomlvsGoofy]

My two cents for what it's worth...I work for a 401K retirement plan company. We were told last week that we would not be getting a raise again this year and they are cutting our pay checks by 4% until July of next year but they would be giving us an extra 2 weeks vacation time. They say this is better then laying us off. What good will 2 more weeks vacation time do for me with no raise again and the pay cut I won't be able to afford to go anywhere.

We were planning a trip to Disney for Feb. 2010. That has been put on hold now because with Disney's price increases and my pay decrease it just won't be possible to do a Disney trip in Feb. and go on the podcast cruise in the same year now and we really want to do the cruise.

Looks like we will be doing more camping and less Disney in the future.

 

[lugnut33]

Just so I understand. Disney wants to price the Dining Plan so high that no one will pay for it and then they will have to give it away for free? I must have been sleeping during that day in Economics.

Hey, I don't understand what the heck they are doing either!!

All I know is they keep raising prices on the DDP and tickets, then they complaine about a lack of guests, and then they discount the rooms or offer free dining. It's crazyness.

The only thing I can think of is if they raise the prices up really high on the dining plan then when they offer free dining with the purchase of rack room rates, it really nets them more money because the food is cheap to make? They can tell you you're saving hundreds of dollars eventhough it really only costs them pennies on the dollar to make the food, yet they can charge a lot more for the room.

You know what I'd like to see? All the non Disney restaurants within say a 5 mile radius of WDW band together and offer their own form of a dining plan.

 

[lugnut33]

My two cents for what it's worth...I work for a 401K retirement plan company. We were told last week that we would not be getting a raise again this year and they are cutting our pay checks by 4% until July of next year but they would be giving us an extra 2 weeks vacation time. They say this is better then laying us off. What good will 2 more weeks vacation time do for me with no raise again and the pay cut I won't be able to afford to go anywhere.

We were planning a trip to Disney for Feb. 2010. That has been put on hold now because with Disney's price increases and my pay decrease it just won't be possible to do a Disney trip in Feb. and go on the podcast cruise in the same year now and we really want to do the cruise.

Looks like we will be doing more camping and less Disney in the future.

Yeah, but Disney has been doing guest surveys and since the guests are pleased and happy with the services provided it means Disney can raise the prices. Next time I do one of those surveys in the parks I'm going to answer negatively to every question because answering positively costs me money.

 

[doconeill]

Yeah, but Disney has been doing guest surveys and since the guests are pleased and happy with the services provided it means Disney can raise the prices. Next time I do one of those surveys in the parks I'm going to answer negatively to every question because answering positively costs me money.

I've heard that a lot of changes were due to surveys, but I have yet to have heard of anyone who's actually taken one that was relevant to those changes. You would think SOMEONE would have said they took a survey that resulted in closing Pleasure Island.

We've done a couple, but they were pretty simplistic - "How was your food at ???" was the last one, with the subject being Pecos Bills - yet I somehow don't think the quality of food increased there since we took the survey...

 

[schoen]

I think when Disney says "guest demand" they mean it in terms of popularity... like there is greater demand. So they raise the prices. I don't think they are suggesting that guests have requested higher prices.

 

[Ava]

I would be interested to know the percentage of people that:

- go once in a lifetime
- go only if they can get a good deal (code, free dining)
- go because they love Disney so much and they'd do anything to go.

I never went to Disney as a child. We couldn't afford it. Not only is it expensive once you get there, it's expensive to just get there.

As an adult, I fall into category 3. We are seriously considering building a house. We will have to make it affordable to still be able to travel. Because we thoroughly enjoy our vacations.

People who go once in a lifetime, will save up enough money to go. They will take their trip and at the end have a great time and never want to go back. My sister is an example of this. She had a great time. Her trip was well planned (thanks to me ), and she spent enough she never needs to go back. It wouldn't have mattered how much things cost, she just figured it into the total she needed to save.

Then there are the people who will only go with free dining or a great offer. The raise in prices is something to gripe about, but in the end, they'll just wait for a great deal to come along.

Then there are the die-hard fans. I'm sure over time, Disney loses a few of them, because things just get too high priced for their taste. But, there will always be die-hards that can't wait to plan their next trip. And, every time price increases come about that group will complain, but in the end, most will continue to travel to Disney because it is a superior product.

I went to WDW 4 times as a child, but I think the experience & expectations were a lot different then. Disney didn't have 4 theme parks and 2 water parks and 20 different hotels and a dining plan and etc etc like they do now. On each of those childhood trips, we spent a few days at Disney and the rest of the time visiting friends in the area and doing other things.

I fall into the 3rd category. I love Disney and will pay what I need to pay to go there and have the experience I want. However, I don't need to go multiple times in a year, or even once a year. One trip every few years is enough for me. I like staying on-site, I like eating at the Disney restaurants - I like being caught in the "Disney bubble" for the length of my trip - so I'm willing to pay for it. To me, staying off-site, renting a car, trying to navigate around an unfamiliar area, dealing with parking, etc. is not a fun vacation. I aim to get the best deal within the confines of what I want out of a trip, but I'm not willing to sacrifice my experience in order to save money. I'd rather go less often.

To the OP: I understand your frustration with price increases, but I think an important distinction is being missed in this whole discussion. Disney is not changing the regular menu prices of their food for "peak" periods, with the exception of a surcharge on a few character buffets. If you are paying OOP for meals, that steak at LeCellier will cost the same regardless of the time of year you travel. They are raising the cost of a meal plan which allows you to pay a fixed price for x number of meals no matter what you order. It's not the same as raising the price of the food itself. You do not have to purchase the dining plan if you don't think it's a good value; you are free to pay OOP for your meals and then you will pay the same price regardless of the "season" you travel during.

If I travel to the World during Spring Break and buy an entrée at Narcoossee’s, it doesn’t cost them a dime more to prepare it the week after during regular or off-peak season. Imagine a scenario where you eat a meal during what is known as peak season and then a friend visits the very next day during off-season. Why should you pay more? Wasn’t the food from the same shipment as yours?

It does cost more to run a restaurant during a busy time than during a slow time. During busy times, they need more waitstaff, more cooks, and they go through more supplies. So while the food itself may not cost any more, their overhead costs are higher. At a regular restaurant that relies solely on patrons paying the menu prices for their meals, the profits & losses can even out over the course of a year. But with the DDP, the restaurant gets the same reimbursement for each DDP credit, regardless of what the patron orders. So it's more difficult for their profits/losses to even out. Raising the price of the DDP during peak season (which probably means a higher reimbursement to the restaurants during peak season) will help increase their profits (or reduce their losses, if they are not doing well).