They shouldn't put out the 2008 guide so early then, if it means the info will be wrong.Check the publication dates. I think Birnbaum's comes out in July or August - but remember, it's compiled before that. The Passporter usually comes out in December or January.
I agree with this.If the reality is that a restaurant can fill its tables at all times and make a smaller profit off each table, vs. not filling to capicity and making a larger profit of the tables it comes out in the wash.
I agree with this.
Disney's purchasing costs are lower, and their restaurants are also much busier. No offense, but do you get a lot of people making reservations 180 days out? Disney does.It just does not work out as simply as people think. Value specials and discounts are the most common ways to bring people into your store. Lets say my Sunday nights are really slow. Let say I do $1000 in food sales at 30% food costs meaning a gross profit of $700. As a special I offer 20% off the entire menu . How much more business do I need to do to BREAK EVEN. I would not even break even unless I do a full 40% more business - and this is only to break even on the cost of food. Obviously to do 40% more business I will need more staff on the floor and in the kitchen. Knocking my profitability back down again. Disney's lower purchasing costs would lower the percentage jump necessary to break even but the discount was well in excess of 20%.
Disney's purchasing costs are lower, and their restaurants are also much busier. No offense, but do you get a lot of people making reservations 180 days out? Disney does.
And my point was that Disney is probably not losing money with the DDP.Of course not - but what does it have to do with the fact that any discount has to be offset by a subsequent increase in volume (at disney or in the real world). My whole point was that the necessary increase is usually much greater than people realize.
And my point was that Disney is probably not losing money with the DDP.
And my point was that Disney is probably not losing money with the DDP.
You are repeatedly ignoring the point that Disney, as one the largest single purchasers of food products in the world (before DDP) is already receiving rock bottom prices. Increased volume does not have an infinite abilitity to reduce cost.
And I agree with this........waiting for Tlofts indignant heated reply.![]()
And I'm not going to back down that I don't think they were losing money, they are making more profit with the 2008 plan though. So we're "bullies" because we disagree with you? I wouldn't ever post on the CB then if our opinions offend you.nice - someone else wants to make it personal. I simply argued (much earlier in this thread at this point) that I could easily believe Disney restaurants were losing money as a part of the original DDP promotion (and before it is said that I am missing the big picture - I said I know that the plan had an overall postive financial impact for the company as a whole). That point of view and the intelligence of the people that hold that opinion was subsequently insulted. I've simply decided not to back down on this one and let the disboard bullies have their way. sorry.
So if you are running at optimim efficiency, how will you increase profits like the bosses want? You can't fit more tables, so get people out of those tables faster and fit in another seating. Bonus - reduce your costs (app. elimination) and now you are rolling in it!
And I'm not going to back down that I don't think they were losing money, they are making more profit with the 2008 plan though. So we're "bullies" because we disagree with you? I wouldn't ever post on the CB then if our opinions offend you.
I don't know what your issues are, but I think it is pretty obvious to anyone reading this that for some reason you are a little too emotionally invested in this to have a rational debate.
It just does not work out as simply as people think. Value specials and discounts are the most common ways to bring people into your store. Lets say my Sunday nights are really slow. Let say I do $1000 in food sales at 30% food costs meaning a gross profit of $700. As a special I offer 20% off the entire menu . How much more business do I need to do to BREAK EVEN. I would not even break even unless I do a full 40% more business - and this is only to break even on the cost of food. Obviously to do 40% more business I will need more staff on the floor and in the kitchen. Knocking my profitability back down again. Disney's lower purchasing costs would lower the percentage jump necessary to break even but the discount was well in excess of 20%.