Disney closing ESPN Zones nationwide

[SmootSmack]

This has been developing for a while. The Atlanta and Denver Zones were closed last year to less fanfare. The economy definitely hurts, it's hurting the restaurant business overall as fewer people are opting for sit-down eat-out restaurants. And leasing the space in some of these markets (such as NYC) is an astronomical hit. Plus the novelty has really worn off, especially as more and more households have their own home theater systems to watch sports.

[firstdown]

Originally Posted by SmootSmack

This has been developing for a while. The Atlanta and Denver Zones were closed last year to less fanfare. The economy definitely hurts, it's hurting the restaurant business overall as fewer people are opting for sit-down eat-out restaurants. And leasing the space in some of these markets (such as NYC) is an astronomical hit. Plus the novelty has really worn off, especially as more and more households have their own home theater systems to watch sports.

All I know if I go by our local mall area with all the restaurants the parking lots are full. I know the economy hurts some but you could never tell by their parking lots. I'm talking chain rest. and localy owned places. Last Thursday night we went out to a restaurant and the place was packed from the time we entered to the time we left. I'm talking about a rest. that you cannot get out of for anything less then $100 and we dropped $200 that night. It would be intresting to hear what SS33 can add sense he is in the business.

[Slingin Sammy 33]

Originally Posted by firstdown

All I know if I go by our local mall area with all the restaurants the parking lots are full. I know the economy hurts some but you could never tell by their parking lots. I'm talking chain rest. and localy owned places. Last Thursday night we went out to a restaurant and the place was packed from the time we entered to the time we left. I'm talking about a rest. that you cannot get out of for anything less then $100 and we dropped $200 that night. It would be intresting to hear what SS33 can add sense he is in the business.

I have a hard time feeling sorry for the mouse and love Disney-bashing as much as the next guy, but this is hardly a case of incompetent or poor management. The economy is rough out there for any disposable income related business. What you see in the restaurants and malls is still activity, but the overall spend is less. The average debt of families in the U.S. has also dropped. So not only are folks not incurring new debt, they're working to pay off old debt, hence not spending as much.

Our restaurant is down significantly from where we were even a year ago (remember unemployment is a lagging indicator). We're still keeping our heads above water, but that's due to reduced hours for our employees and increased hours for my wife and I. Our food distributors and other folks we know in the restaurant business are confirming what we see in our numbers. Also, two major local suppliers (one for bread, one for produce) that have been in business in Hampton Roads for over twenty years went out of business in the last 3-4 months. Our major supplier has cut its prices to push out our secondary supplier.

When you see Pizza Hut, Papa John's, etc. $ 10 pizza deals go away, then the economy is getting better.

[CRedskinsRule]

Originally Posted by Slingin Sammy 33

I have a hard time feeling sorry for the mouse and love Disney-bashing as much as the next guy, but this is hardly a case of incompetent or poor management. The economy is rough out there for any disposable income related business. What you see in the restaurants and malls is still activity, but the overall spend is less. The average debt of families in the U.S. has also dropped. So not only are folks not incurring new debt, they're working to pay off old debt, hence not spending as much.

Our restaurant is down significantly from where we were even a year ago (remember unemployment is a lagging indicator). We're still keeping our heads above water, but that's due to reduced hours for our employees and increased hours for my wife and I. Our food distributors and other folks we know in the restaurant business are confirming what we see in our numbers. Also, two major local suppliers (one for bread, one for produce) that have been in business in Hampton Roads for over twenty years went out of business in the last 3-4 months. Our major supplier has cut its prices to push out our secondary supplier.

When you see Pizza Hut, Papa John's, etc. $ 10 pizza deals go away, then the economy is getting better.

Noooooooooo

[saden1]

Originally Posted by Slingin Sammy 33

I have a hard time feeling sorry for the mouse and love Disney-bashing as much as the next guy, but this is hardly a case of incompetent or poor management. The economy is rough out there for any disposable income related business. What you see in the restaurants and malls is still activity, but the overall spend is less. The average debt of families in the U.S. has also dropped. So not only are folks not incurring new debt, they're working to pay off old debt, hence not spending as much.

Our restaurant is down significantly from where we were even a year ago (remember unemployment is a lagging indicator). We're still keeping our heads above water, but that's due to reduced hours for our employees and increased hours for my wife and I. Our food distributors and other folks we know in the restaurant business are confirming what we see in our numbers. Also, two major local suppliers (one for bread, one for produce) that have been in business in Hampton Roads for over twenty years went out of business in the last 3-4 months. Our major supplier has cut its prices to push out our secondary supplier.

When you see Pizza Hut, Papa John's, etc. $ 10 pizza deals go away, then the economy is getting better.

Disney had 3.3 billion dollars in profit last year and has 3.4 billion cash on hand, I think they can carry the chain through rough times. Their mistake was to simply rely on brand name to carry their restaurant. I can get better food and more beer choice at my local bar at better prices so why would I go in to a Zone?

[mredskins]

Originally Posted by SmootSmack

This has been developing for a while. The Atlanta and Denver Zones were closed last year to less fanfare. The economy definitely hurts, it's hurting the restaurant business overall as fewer people are opting for sit-down eat-out restaurants. And leasing the space in some of these markets (such as NYC) is an astronomical hit. Plus the novelty has really worn off, especially as more and more households have their own home theater systems to watch sports.

As a former Marriott and Disney employee managing their revenue in the hotel/restaurant sector of their businesses I will have to say Disney has no business being in the restaurant or hotel industry. Disney should simply stick to the entertainment side of their business model. Now that the economy is stinking up or has been Disney just can't compete in the hotel/restaurant industry.

I predict Disney vacation clubs to be the next to sink.

[SmootSmack]

Originally Posted by mredskins

As a former Marriott and Disney employee managing their revenue in the hotel/restaurant sector of their businesses I will have to say Disney has no business being in the restaurant or hotel industry. Disney should simply stick to the entertainment side of their business model. Now that the economy is stinking up or has been Disney just can't compete in the hotel/restaurant industry.

I predict Disney vacation clubs to be the next to sink.

There has been talk for a while, there even was with the Zones, of doing basically what the Redskins did with their stores. Move the management of the business outside the company but allow the new management to keep the Disney name for licensing and branding purposes.

I'm not really involved at all on that side of the business of course, but I have worked with them on occasion and it's definitely a daunting business they seem to work in.

[FRPLG]

Originally Posted by mredskins

As a former Marriott and Disney employee managing their revenue in the hotel/restaurant sector of their businesses I will have to say Disney has no business being in the restaurant or hotel industry. Disney should simply stick to the entertainment side of their business model. Now that the economy is stinking up or has been Disney just can't compete in the hotel/restaurant industry.

I predict Disney vacation clubs to be the next to sink.

I admittedly have no idea how Disney operates as a company but they run the biggest resort in the world don't they? And make tons on it? Is that sector of their business just totally separate??? because they seem to have that stuff set up pretty well. I guess it is a different thing all together.

[mredskins]

Originally Posted by FRPLG

I admittedly have no idea how Disney operates as a company but they run the biggest resort in the world don't they? And make tons on it? Is that sector of their business just totally separate??? because they seem to have that stuff set up pretty well. I guess it is a different thing all together.

I consider the park itself a different entity then the hotels/restaurants. The properties at the parks do well it is when you start pulling away from the park that they struggle. They started in the entertainment business and then theme parks which obviously is their strong suit so much so that they are able to dabble in lots of other ventures. Basically retail,hotels, restaurants, cruise ships, etc... are all secondary sources of income for them but they all help drive the Disney name so if they fall behind it is not such a black eye for Disney becasue the revenue from entertainment/theme parks can cover up a lot of those sins but now that the economy is tanking hard for them to cover up.