Disney CFO Comment

[Disney0010]

Did anyone else hear about the comment made yesterday during Disney’s earning call? It seems to have set some off and the feedback has not been well received. During the call the subject was ways to increase revenue even more, Disney CFO Christine McCarthy was speaking about food at the parks. She made this comment. “We can cut portion size, which is probably good for some people’s waistlines.” You can Google her name and see some of the articles out there. Not sure what I can post here so I will let each person look it up.

I personally have no issues with some of the portion sizes being adjusted down but the price should reflect the smaller size and we all know that was not her intent. IMHO Disney needs to step up the overall quality of their food but that won’t happen. I think Ms. McCarthy needs to be a little more careful with her choice of words.

I will post this link and if it’s not allowed the mods can remove it.

https://www.laughingplace.com/w/news/2021/11/10/disney-cfo-waistline-comment-controversy/

 

[mom2rtk]

They could always stop selling cupcakes.

 

[twitch]

Meh.

My loaf of bread has two less slices in it than it did pre-pandemic.
My bag of frozen ravioli has 9 less raviolis in it than it did pre-pandemic.
My bag of shredded cheese is only 1.75 cups instead of 2 cups.

Shrinkflation is happening in the food service industry all over the place. I've actually been impressed that the prices/portions at Disney haven't changed all that much compared to before the pandemic. The one notable instance that's gotten discussion on this board has been the Monte Cristo portion/plating at Cafe Orleans.

(Also, she's not wrong. But I don't really think Disney cares that much about the overall health of its guests. This really is about bottom line.)

The choice is either to shrink portions or raise prices. One or the other WILL happen over the course of the next year.

 

[Gypsybear]

The choice is either to shrink portions or raise prices. One or the other WILL happen over the course of the next year.

I honestly believe they'll go for both options. They'll shrink the portions, and quietly increase prices.

 

[mom2rtk]

(Also, she's not wrong. But I don't really think Disney cares that much about the overall health of its guests. This really is about bottom line.)

That's my issue with it. Don't pretend that you care about guest health when you do plenty of other things to make money off of high fat high calorie items. It's very disingenuous to use that argument for doing something that saves them money while continuing to sell dessert parties and a variety of other things that make them money.

I honestly believe they'll go for both options. They'll shrink the portions, and quietly increase prices.

Of course they will.

 

[MonocularVision]

The Disneyland Diet is definitely my favorite diet.

 

[jennyq87]

Don't pretend that you care about guest health when you do plenty of other things to make money off of high fat high calorie items.

Exactly this. "I'm giving you less, but it's really in your best interest. I'm doing it because I care about you." It feels wildly condescending. Ultimately they can choose to change prices/portion sizes to whatever they want, and I can chose whether or not to purchase it. But don't make a financially-driven decision and try to hide it behind something else

 

[twitch]

Just my opinion, of course... but I listened to the clip. I don't think she's seriously suggesting that guest health is the motivation for the change. It's a throw-away line... a joke. The context is really about earnings and shrinking margins during high inflationary times. We can argue that the joke was in poor taste, but I don't see this as Disney attempting to hide a financial decision behind language about guest health. As a public speaker, I know what it's like to say something off the cuff in an effort to (re)engage the audience. I think that's what's happening here.

As far as whether or not they're going to shrink portions AND raise prices... maybe. But again, I've listened to the relevant clip, and it's all about finding the right algorithm. She specifically indicated that they're not looking at an across-the-board price increase on food. I suspect some things will increase in price (churros & corn dogs). Other things may shrink in size (number of slices in a pizza... or fries in a side order... or the size of a cookie). I don't expect you're going to see the same menu item shrink in size AND go up in cost all at once. (Of course, over time, that's possible.)

With an annual inflation rate of 6.2%, you can guarantee price (and portion) changes all over the place.

 

[Gypsybear]

Prices are going to increase. That's a given, especially in light of the fact that some of their suppliers are raising their prices. Even on things as small as ketchup. When you think about the amount of ketchup that places like Disney go through, you know what's coming. Same was said of Mac n Cheese. Apparently it's a dairy issue.

Now, whether that will significantly impact the overall experience, who knows.

As to her comment, I've done lots of public speaking as well, and I will say that her "off the cuff comment" to re-engage, was in poor taste. People are already upset about price increases everywhere, so why rub salt in the wound, and try to pass it off as humor? That, I believe, is why it's rubbing people the wrong way.

Just my two cents.

 

[Disney0010]

If you’re going to reduce portion sizes why advertise it? Did Nabisco tell you ahead of time that they were reducing the size of Oreo’s or Chips Ahoy? No but they did and the prices continue to climb. I think most people are smart enough to know that prices are going up across the board but for the CFO to make those comments was not smart. Now people will not only be looking for both reductions in food and higher prices. Not a smart move on her part.

 

[starlite_]

Shrinkflation is happening in the food service industry all over the place. I've actually been impressed that the prices/portions at Disney haven't changed all that much compared to before the pandemic. The one notable instance that's gotten discussion on this board has been the Monte Cristo portion/plating at Cafe Orleans.

I'm sorry, what happened to the Monte Cristo? I'm so out of the loop.

 

[twitch]

If you’re going to reduce portion sizes why advertise it? Did Nabisco tell you ahead of time that they were reducing the size of Oreo’s or Chips Ahoy? No but they did and the prices continue to climb. I think most people are smart enough to know that prices are going up across the board but for the CFO to make those comments was not smart. Now people will not only be looking for both reductions in food and higher prices. Not a smart move on her part.

This is the nature of an earnings call. The audience is shareholders and stakeholders who want to know what the future profit outlook is. While executives in earning calls have to be conscious that consumers are often listening, the primary audience expects answers to questions like: "What are your plans to mitigate the impact of inflation?"

 

[twitch]

I'm sorry, what happened to the Monte Cristo? I'm so out of the loop.

MC at Cafe Orleans used to be plated with four triangles on a single plate. People often ordered one order of the MC and one order of Pommes Frites and split them between two (or 3) people.

Post pandemic, a single order is plated with 2 triangles and pommes frites on a single plate. It's better for solo diners or those whose companions don't want to share. It's marginally worse for those who were used to sharing and aren't interested in trying a different menu item.

 

[starlite_]

MC at Cafe Orleans used to be plated with four triangles on a single plate. People often ordered one order of the MC and one order of Pommes Frites and split them between two (or 3) people.

Post pandemic, a single order is plated with 2 triangles and pommes frites on a single plate. It's better for solo diners or those whose companions don't want to share. It's marginally worse for those who were used to sharing and aren't interested in trying a different menu item.

ahhhhh, I used to do that too. Ugh, at least I found out before my trip haha. Thanks!

 

[GatorChris]

Disney: We care about your waistlines.

Also Disney: $8.99 please

 

[fly girl]

Yeah, that bombed.

Do I think she intentionally meant it to fat shame? No. But I think it didn't do her any favors.

Of course it isn't the worst thing I have heard, and offended I am not (not that it would matter if I was), but I can clearly see that the tongue and cheek comment didn't play well. Know your audience. Yes, even the outside ones! The problem is Disney park goers have been voicing their thoughts for some time about how we are feeling nickeled and dimed at every turn. We notice all the things Disney has taken away while still increasing prices across the board. We understood to a point, but I think many of us are coming close or have hit our threshold. And when you hear this attempt at humor it can read as backhanded condescension.

"Yes, we are charging $1.50 more and taking away half of the portion size. Our patrons wallet may not be thanking us, but their waistline is."

*queue in high brow laugh*

 

[VandVsmama]

I can't wait to hear what Pete Werner has to say about this on next Tuesday's podcast!

My PC opinion of this:
That was a poor choice of words.

My unedited opinion of this:
Totally ridiculous garbage. Oh puh-leeze, Disney Corporation...do NOT make snarky comments about people's waistlines when almost ALL of the food you serve at WDW and DL is basically junk food. We are not stupid. We weren't born yesterday. Your Bob Paycheck/Lex Luthor is showing again. It's all about your bottom line...we know this. You've shown us this through all of your decisions over the last 12 months. At least now you're full on admitting it instead of trying to pretend that you actually give a rat's behind about your loyal customers.

Hey Disney...you know why people are vacationing elsewhere? Because of poo like this. No more EMH...now it's a pathetic 30 min early entry, which maybe gets you on 1 ride. And in a month and a half, no more DME. You still haven't restarted daily housekeeping service, yet your nightly rates have gone up. It's even the little things, like buttons...if you want a celebration button of some sort with your name written on it? No soup for you...go pick one out of the 'help yourself' bin in front of City Hall on Main Street.

And don't get me started on the entertainment options...Hoop Dee Doo still isn't back. You came up with that stupid & totally lame new show at Epcot, then are selling super expensive meal packages, but those viewing locations aren't ideal. So why the heck would we pay for that?

So you basically admitted to the Wall Street investors this week that you're now out of ideas on how to squeeze more blood from a turnip and you're now down to "Oh, I don't know, I guess we'll cut portion sizes...after all, plenty of our customers are pretty fat and could stand to go on a diet anyway." It's a pathetic day when you're now insulting your park guests.

You couldn't even do the Genie+ thing right. You should have just implemented DL's Max Pass at WDW. KEEP IT SIMPLE, BOB CHAPEK/PAYCHECK/LEX LUTHOR!

Attention Disney board: It's time to "promote" Bob Chapek to the Disney Institute aka put him out to pasture aka have him 'retire.' He's ruining your brand.

 

[ktlm]

MC at Cafe Orleans used to be plated with four triangles on a single plate. People often ordered one order of the MC and one order of Pommes Frites and split them between two (or 3) people.

Post pandemic, a single order is plated with 2 triangles and pommes frites on a single plate. It's better for solo diners or those whose companions don't want to share. It's marginally worse for those who were used to sharing and aren't interested in trying a different menu item.

It is great for me, but what stinks is that you can no longer order the pomme frites separately. My DH loves those and hates the Monte Cristo. I did not particularly want to share my pomme frites with the reduced portion of them... but I did because I know he loves them too! LOL

 

[BrianL]

Well, her "joke" drew attention to the idea of shrinking portions, and I think they are seeing a negative reaction to that, so hopefully they will pay attention.

 

[DisneyKidds]

The choice is either to shrink portions or raise prices. One or the other WILL happen over the course of the next year.

One or the other? Ha, my money is on both……