rising food costs and the DDP

[shoney]

I wrote the following in response to this thread:

http://www.disboards.com/showthread.php?t=2866986

I think they were going to raise prices across the board and had to increase the dining plan as a result. It's just that those prices for the DDP were published first.

We are going in Feb and have free dining. I poured over menus to get an idea of where to eat. I kept thinking to myself, if this weren't free, I would NEVER buy it. It seems impossible to actually save!

From what I have read, snack credits are usually for items under $4, have they now included snacks in the dining plan that cost $5.00 plus or are these items no longer available?
(**yes we looked into room only discount, but it only saved $448.00 and I know we'll spend more than that on food for a week)


I thought I would repost it here since it is more of a DDP question.

It seems that as new menus are published, we need to check the numbers a second time. The increase in the 2012 DDP may not be as bad as originally thought.

Any thoughts?

 

[havoc315]

The increase is as bad as originally thought. Unlike room prices, menu prices don't go up on January 1st. Different restaurants may change their menus and prices at different times, but for the most part, menus are revamped in August. Thus, at most restaurants, the food prices are the same in Feb 2012, as they were in December 2011.
Many menu items, have been priced the same for many years. I think the regular sushi platter at California Grill has been $28 for the last 5 years straight.

This isn't new -- Every year, Disney menu prices -- *on average* go up 3-4%, and the dining plan goes up 10%. Buffets go up closer to the 10%. And there are always isolated menu items that go up more -- some items go up 10%, other items don't change at all. This past August, for example, children's menu prices saw a 20% increase, but it was their first increase in years. Same with soda. But most entrees did not see significant price increases.

As to snacks --- as some snacks have increased to over $4, some have still been kept as snack credits. Some have been excluded as they cross the $4 threshold. Disney has not generally raised the threshold across the board. If anything, they have added more exclusions. For example, you used to be able to get a cereal & milk for a snack credit -- They will no longer allow that.

 

[shoney]

the thread was discussing a huge increase in counter service and snacks...not table service.

 

[Faldred]

It hasn't been discussed as much lately around here as it was a few years ago,but one of the arguments in favor of the dining plan over OOP is the concept of price protection. That is, there are no guarantees that OOP prices will remain the same, and they can be increased at any time.

In the current economic climate, where high energy costs ripple effects all the way through the economy (due to production and transportation energy costs), it's not unreasonable to think that food costs could significantly rise and result in menu price increases. But there's no way to predict how much, if anything, those increases will be, or when they will take effect.

Also remember that food cost is only a fraction of the restaurant's total cost in getting you that food; there's overhead, staff, etc., involved as well. There are also ways of dealing with rising food costs other than raising prices -- the most notable would be the general homogenization of the Disney-owned restaurant menus, allowing for the restaurants to pool their purchases in bulk. They can also start using lower-quality ingredients and/or smaller portion sizes.

The other thing to consider is the "captive audience" concept, where the mark-up on food (especially at in-park CS) is higher than it would otherwise be because there is no competition. This gives the restaurants a little more leeway to weather out price fluctuations without having to change menu prices, but in the end, thery're treated as "profit centers", and WDW management will expect them to have specified profit margins.

 

[TDC Nala]

If you're interested in the extras (desserts at every meal, snacks every day, smoothies instead of coke or water where available) then the DDP is more of a deal, but if you're not really interested in those anyway, the cost of the DDP is rising as well - and you're locked into ordering what comes with the plan (entree plus dessert if you're on the regular plan - if you want appetizers that's extra). So it's still a matter of if you and your party were planning to eat that way anyway.

 

[shoney]

I'm sorry I wasn't clear with my post.

My purpose in putting it over here was because my question, in regards to the op's original statement of rising prices, centered around the dining plan.

I was wondering, if anyone knew, if the more expensive snacks ($5 range) are being included as a snack credit?

My comment on the DDP was only an after thought...

I just meant that when figuring OOP vs. DDP in an apples to apples comparison, the price increase isn't as bad. (If indeed the snacks and counter service meals have gone up as much as people are stating)

 

[TDC Nala]

I'm sorry I wasn't clear with my post.

My purpose in putting it over here was because my question, in regards to the op's original statement of rising prices, centered around the dining plan.

I was wondering, if anyone knew, if the more expensive snacks ($5 range) are being included as a snack credit?

My comment on the DDP was only an after thought...

I just meant that when figuring OOP vs. DDP in an apples to apples comparison, the price increase isn't as bad. (If indeed the snacks and counter service meals have gone up as much as people are stating)

No way to know that now. Would have to watch the snack thread to see if any snacks are discontinued. the $4 was never a hard and fast rule anyway.

 

[havoc315]

I'm sorry I wasn't clear with my post.

My purpose in putting it over here was because my question, in regards to the op's original statement of rising prices, centered around the dining plan.

I was wondering, if anyone knew, if the more expensive snacks ($5 range) are being included as a snack credit?

My comment on the DDP was only an after thought...

I just meant that when figuring OOP vs. DDP in an apples to apples comparison, the price increase isn't as bad. (If indeed the snacks and counter service meals have gone up as much as people are stating)

And the answer is --- Some former snacks have seen price increases, and continued to be snack credits. But some items, have ceased to be covered as snack credits when the price surpassed $4.

For example, the ice cream cookie sandwich at the Main Street Bakery used to be about $4, and it was covered as a snack credit. It is now about $5, and many guests have reported that they were not allowed to use a snack credit for it.

Here is a pretty recent picture of the menu at Storybook Treats:
http://www.easywdw.com/menus-and-se...ce-cream-fantasyland-ice-cream-and-beverages/

As you can see, the ice cream items under $4 are covered as snack credits. The ice cream sundaes that are $4.69 are NOT covered as snack credits.
Thus, while there are reports of some items over $4 being allowed (The $4.49 pineapple float is still a snack credit at Aloha Isle), the $4 cut-off still applies as a general rule.

Thus, overall.. they increased the price of the dining plan, but they reduced the value.

Turning to CS -- For the most part, there were not significant increases in CS entree and dessert prices. The increases were primarily in soda and kid's meals.

For example, entrees --- In June of 2010, the price of the 1/2 chicken at Flame Tree BBQ was $9.49. Now, it's $9.69. (1% increase per year)
At Casey's Corner, a hotdog meal was $6.49 in 2009, now it's 6.69 --- 20 cent increase over 2 years.
Cosmic Rays -- in 2007!!! The Chicken/rib combo was $13.99, now it's $14.19 -- So 20 cent increase, in 4+ years.

So no, the price increases clearly do not justify the substantial increase in the price of the dining plan.

 

[shoney]

And the answer is --- Some former snacks have seen price increases, and continued to be snack credits. But some items, have ceased to be covered as snack credits when the price surpassed $4.

For example, the ice cream cookie sandwich at the Main Street Bakery used to be about $4, and it was covered as a snack credit. It is now about $5, and many guests have reported that they were not allowed to use a snack credit for it.

Here is a pretty recent picture of the menu at Storybook Treats:
http://www.easywdw.com/menus-and-se...ce-cream-fantasyland-ice-cream-and-beverages/

As you can see, the ice cream items under $4 are covered as snack credits. The ice cream sundaes that are $4.69 are NOT covered as snack credits.
Thus, while there are reports of some items over $4 being allowed (The $4.49 pineapple float is still a snack credit at Aloha Isle), the $4 cut-off still applies as a general rule.

Thus, overall.. they increased the price of the dining plan, but they reduced the value.

Turning to CS -- For the most part, there were not significant increases in CS entree and dessert prices. The increases were primarily in soda and kid's meals.

For example, entrees --- In June of 2010, the price of the 1/2 chicken at Flame Tree BBQ was $9.49. Now, it's $9.69. (1% increase per year)
At Casey's Corner, a hotdog meal was $6.49 in 2009, now it's 6.69 --- 20 cent increase over 2 years.
Cosmic Rays -- in 2007!!! The Chicken/rib combo was $13.99, now it's $14.19 -- So 20 cent increase, in 4+ years.

So no, the price increases clearly do not justify the substantial increase in the price of the dining plan.

I don't think we are on the same page.... I am not saying that the "value" hasn't lessened. It was just a statement based on what I was thinking.... I didn't see any value in the dining plan!!!!! If it weren't free, there is no way I would have considered it!

Before I read the former post:
4.00 snack
12.00 counter service
35.00 table service

51.00

Now that I saw price increases:
5.00 snack (assuming still covered)
14.00 counter service
35.00 table service

54.00

It was just a basic observation...nothing more.

 

[havoc315]

I don't think we are on the same page.... I am not saying that the "value" hasn't lessened. It was just a statement based on what I was thinking.... I didn't see any value in the dining plan!!!!! If it weren't free, there is no way I would have considered it!

Before I read the former post:
4.00 snack
12.00 counter service
35.00 table service

51.00

Now that I saw price increases:
5.00 snack (assuming still covered)
14.00 counter service
35.00 table service

54.00

It was just a basic observation...nothing more.

It's still a $4 snack. As I showed you, for the most part -- though there are some exceptions -- Items over $4 are still not covered.
And adult counter service costs have not gone up by $2 in the last year --- Adult counter service full meal prices have gone up by about $0.70 on average. (I think it's 0.40 increase in soda cost, another 0-0.30 in entree costs, most desserts are unchanged).

 

[TDC Nala]

I would think I'd have to wait and see if they are still covering snacks that were covered last year, but the price of which have gone up over $4 just recently. Since the snacks aren't officially listed anywhere we don't know that until we get reports. Sometimes they've dropped snacks and sometimes they haven't, I think the OP really wants to know if they're going to be dropping MORE snacks.

 

[TDC Nala]

I would think I'd have to wait and see if they are still covering snacks that were covered last year, but the price of which have gone up over $4 just recently. Since the snacks aren't officially listed anywhere we don't know that until we get reports. Sometimes they've dropped snacks and sometimes they haven't, I think the OP really wants to know if they're going to be dropping MORE snacks.

 

[havoc315]

I would think I'd have to wait and see if they are still covering snacks that were covered last year, but the price of which have gone up over $4 just recently. Since the snacks aren't officially listed anywhere we don't know that until we get reports. Sometimes they've dropped snacks and sometimes they haven't, I think the OP really wants to know if they're going to be dropping MORE snacks.

Perhaps. But as we've seen in the past, as snack prices increase.. some snacks have maintained coverage, while other snacks have been dropped. We can say with confidence, that Disney has not, as a matter of policy, began to cover items up to $5 for snack credits. Outside of the F&W festival, it's pretty rare to find covered items that are much over 4-4.25ish. (The 4.49 Dole Whip float may be the most expensive item I've seen covered).