branv
<font color=blue>The safety feature in my parents
- Joined
- May 20, 2005
- Messages
- 3,891
Of course restaurants can sell a lot of something and still not make much money. It's a matter of margins. WDW has something of a captive audience..errr..purchasers. I'm sure we can all agree that it's only a small percentage of people who bother to leave the park to go eat somewhere off property or bring their own food. Especially when someone has bought into the DDP.
So...you know you'll bring them in one way or the other.
Let's say you offer this product X and it's very popular. However, X costs you $5 to purchase and cook, and you sell it for $15. Pretty decent profit...buuuuuut....you realize that there's a lesser product you can sell for $14, but it will only cost you $3 to make. Hmmmm...$1 extra profit for each and every one of those items that's sold. So WDW hedges its bet that one single entree/dessert isn't the sole reason people visit that restaurant, and even if it is, as we've seen...for every irate customers, there's an up and coming consumer right behind them. They know people will huff and puff, but eventually will realize "I've gotta eat, right?" and keep coming back.
Bottom line - dining plan packed the restaurants as well as a boomer travel year. WDW is seeing what happens when they start giving a little less per dollar. Supply and demand...they hold a little more power now and they're using it, stockholders demand more more more profit each and every quarter and they have to do that somehow. Every company does it. If you doubt what I'm saying, just consider how much they chopped out of the DDP and only lowered the cost a $1. The only way they'll stop paring things back is if people rebel with their wallets.
And I mean, really, "smaller portions" as a WDW health initiative. I can assume that will not coincide with smaller prices.
BTW: did anyone else read they've pulled the very popular Macadamia Mahi-Mahi from the Kona menu? But it's being replaced by two other fish (tuna and ono -- can't really judge expense issues until you know grade/size, and it could just be seasonal). But oh yeah, the Torte no longer comes with ice cream.
So...you know you'll bring them in one way or the other.
Let's say you offer this product X and it's very popular. However, X costs you $5 to purchase and cook, and you sell it for $15. Pretty decent profit...buuuuuut....you realize that there's a lesser product you can sell for $14, but it will only cost you $3 to make. Hmmmm...$1 extra profit for each and every one of those items that's sold. So WDW hedges its bet that one single entree/dessert isn't the sole reason people visit that restaurant, and even if it is, as we've seen...for every irate customers, there's an up and coming consumer right behind them. They know people will huff and puff, but eventually will realize "I've gotta eat, right?" and keep coming back.
Bottom line - dining plan packed the restaurants as well as a boomer travel year. WDW is seeing what happens when they start giving a little less per dollar. Supply and demand...they hold a little more power now and they're using it, stockholders demand more more more profit each and every quarter and they have to do that somehow. Every company does it. If you doubt what I'm saying, just consider how much they chopped out of the DDP and only lowered the cost a $1. The only way they'll stop paring things back is if people rebel with their wallets.
And I mean, really, "smaller portions" as a WDW health initiative. I can assume that will not coincide with smaller prices.
BTW: did anyone else read they've pulled the very popular Macadamia Mahi-Mahi from the Kona menu? But it's being replaced by two other fish (tuna and ono -- can't really judge expense issues until you know grade/size, and it could just be seasonal). But oh yeah, the Torte no longer comes with ice cream.