starbox said:
I think most of the recent dining changes are linked more to Disney having a new Disney CEO that is clearly focused on raising profit margins in the theme parks than it is to the addition of the DDP, which is by nature always going to comprise a small sub-group of diners and an even smaller sub-group of consumer-educated, pre-planning diners.
Except, wasn't Eisner perceived as being too focused on the profit margins? Food was better when he was there.
And I wouldn't call it a "small sub-group" of people using the dining plan. It used to be true when packages were cosidered pricey...now it seems (even according to you) that the Dining Plan is the way to go, nor would I consider the majority of people using the dining as being in the dark about how to use it. When you have $25 for a sit down entree, it sounds like a lot. But, then there is the drink, dessert, and appetizer to pay for from that $25, as well as taxes, wages and server tip. That could eat up ay profit pretty quickly.
For instance, lets say a retailer sells Root Beer for $1.50 a bottle and that bottle costs him 60 cents, leaving a profit of 90 cents.
Say his other product is chips, which he sells at $1, and pays 40 cents for each pkg.
To increase sales of Root Beer, he gives away a package of chips if someone buys 2 bottles of the soda. Now he is selling 2 bottles of soda and a pkg of chips for $3.00. The cost to the retailer is $1.60, making $1.40 profit, instead of his normal
profit of $2.40 on those same items. At the same time, he is giving his employees an 18% tip on the retail value for selling the items (or 67 cents), dropping his profit to 73 cents for the transaction. How many of these sets, not even counting the increased labor and operating expenses to sell them, will he have to sell to make his original $2.40 profit?
The answer is 3.28. In other words, he has to sell over 6 bottles of soda with 3 bags of chips to make up for what would be his normal profit on 2 sodas and 1 bag of chips. And these are small items. How many "DDP" meals (with free drinks, appetizer and dessert) do you think a restaurant has to has to sell to make up the lost profit? Especially considering the drinks, appetizer and dessert ARE their high profit items, not the entree? More than 3, I'll bet.