Disney closing ESPN Zones nationwide

[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.

[tryfuhl]

I went to ESPN Zone once and found no reason to return. It reminded me of TGI Fridays but with bathroom TVs. Talking about the one in NYC.

[TheMalcolmConnection]

I LOVE Buffalo Wild Wings. Basically it's like your favorite home-town dive sports bar but it's a chain. Daily drink specials, video trivia, contests, pretty good wings and I do love me some Asian Zing and Mango Habanero, my two favorites. Especially in college towns, the beer and liquor specials are insane. When my wife was working at Virginia Tech we got to know the bartenders at the Blacksburg BWW and they always gave us some swag when we watched VT or Redskins games. GREAT bar and restaurant.

[Dirtbag59]

Zachby's FTW! Wait what?

[saden1]

The real tragedy in all of this is that a lot of folks are going to lose their jobs...it sucks hard that they have to pay the price for the incompetent of Disney/ESPN management.

[firstdown]

Originally Posted by saden1

The real tragedy in all of this is that a lot of folks are going to lose their jobs...it sucks hard that they have to pay the price for the incompetent of Disney/ESPN management.

Well to be fair Disney and ESPN employ alot of people and its rare to here about Disney failing at anything because just about everything Disney is involved in turns to gold. Hell now is the time to be unemployed because you can stay on unemployment for like 2 yrs now. Everytime they extend unemployment people all around the US cheer for a few more months they get paid to sit on their ass.

[SmootSmack]

Originally Posted by firstdown

Well to be fair Disney and ESPN employ alot of people and its rare to here about Disney failing at anything because just about everything Disney is involved in turns to gold. Hell now is the time to be unemployed because you can stay on unemployment for like 2 yrs now. Everytime they extend unemployment people all around the US cheer for a few more months they get paid to sit on their ass.

Not everything Disney does turns to gold. Unlike what some people believe though, not everything they do is a total failure either. Many of these employees, if past similar situations are any indication, will be offered other jobs within the company.

I'll disregard your general unemployment statement

[firstdown]

Originally Posted by SmootSmack

Not everything Disney does turns to gold. Unlike what some people believe though, not everything they do is a total failure either. Many of these employees, if past similar situations are any indication, will be offered other jobs within the company.

I'll disregard your general unemployment statement

They have a pretty good track record along with ESPN for getting thing right alot of the time. The unemployment statement was to get saden worked up.

[SmootSmack]

Originally Posted by firstdown

They have a pretty good track record along with ESPN for getting thing right alot of the time. The unemployment statement was to get saden worked up.

On behalf of the mouse, the kind words are appreciated. I think we do get things right a lot but we also make mistakes along the way. I don't think the Zone was a mistake, by the way.

[SkinEmAll]

BWW is ok i guess, the one here in williamsburg is fairly new here but nothing to write home about. I actually like the Quaker State wings and atmosphere a whole lot better. Ive never been to a espn zone and I reckon I never will and by the sounds of it I aint missing didly squat.