Today, Disney held its Q4 Earnings Call, providing all kinds of updates about the company’s financial status, Disney+ subscriptions, and more.
Mickey Ice Cream Sandwich
During the call, we also got to hear a bit more about how things are going in the Disney parks and where things may be headed in the future. In particular, we got a bit of insight on some measures Disney is considering when it comes to cutting costs.
During the earnings call, one individual asked about inflation and how Disney is thinking about potentially mitigating that. In response, Christine McCarthy, Senior Executive Vice President and Chief Financial Officer of The Walt Disney Company, noted that that’s on the mind of all companies right now.
She noted that they’ve already experienced the impacts in some parts of their business and are considering various ways in which it could be mitigated when it comes to the parks.
Animal Kingdom
Specifically, McCarthy noted that she had been speaking with the parks senior team about what can be done, and she said that there are “lots of things that are worth talking about.” McCarthy said, “you know we can adjust suppliers. We can substitute products. We can cut portion size, which is probably good for some people’s waistlines. We can look at pricing where necessary. But we aren’t going to go just straight across and increase prices. We’re really going to try to get the algorithm to right to cut where we can and not necessarily do things the same way.”
McCarthy said they’re trying to really use their heads to come up with a way to mitigate the challenges they’re facing.
Spaceship Earth
Based on McCarthy’s quote, it seems some methods that could be considered include shifting the products used when it comes to the parks, changing their suppliers, looking at the pricing of certain items, and even potentially altering food portion sizes. Of course, at the moment these appear to only be things under consideration or that are potentially “worth talking about” when it comes to cutting costs. But, there has been no official word as to what steps may ultimately be taken.
We have seen price increases when it comes to food in Disney World. We’ve also seen ticket price and parking price increases in Disneyland.
The Mickey waffles are always a hit!
We’ll be on the lookout for more updates and we’ll let you know what we find.
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I found it interesting that Disney found this great idea to save money. Raise prices on admissions and charge for some of the rides’ I think saving money to enhance profitability is a wonderful idea. cutting services and raising prices always pleases the finance minions. It is such a great idea that I am going to do the same! Disney, please be advised I am following your lead. I will not be purchasing the two annual passes this year and will not be staying in any of your hotels on property. I know in the greater scheme of things you can care less about my little protest but it makes me feel good. You are not the only vacation venue available.
They are already doing this, why are we surprised. Example, the new 50th Anniversary Menu at California Grill. It is a set price of $89 no matter what you eat which is higher than any previous menu item. Sure, they say you get an appetizer and dessert. Well guess what we don’t eat them (watching our waistlines) but we still have to pay for it. And the signature dining has basically become banquet food, not made to order. They save money by offering only a few items and use less cooks to make them. They did the same thing at Be Our Guest. Dinner used to great there. They went to the prix fixe menu, now it cost more and the portions are smaller we have pictures to prove it. Three of us would eat there, two of us would get an entree’ and my girlfriend would just get an appetizer because she’s not a big eater. Once they instituted the prix fixe menu, we were informed she had to pay the same price no matter what she ordered.
But the biggest problem Disney has is they have a bunch of bean counters like Ms. McCarthy making decision that are out of their expertise. Accountants should NOT be making the sole decision on cost cutting measures. All they do is sit and look at spreadsheets, see big line items and says “oops that’s got to go. Magical Express, that’s $5,000,000, let them find their own way, GONE.”
Ms. McCarthy have you ever heard of the spiral down theory, that is what you are stuck in. Increasing pricing and cutting portions is going to cost you money in the long run. Please contact me if you would like practical solutions, not fire sales and snap decisions.
This makes me absolutely sick! After just getting back from the most magical celebration. The portions to me were already smaller than in the past. It cost triple the amount for the same vacation 6 years ago. Don’t get me wrong our family loves Disney, but they need to know when enough is enough. People eventually will get fed up with the new management. It will lose its magic!
When Disney offers a single cupcake or cookie for about $6 each, it’s time to say adios.
We ate at 50’s Prime Time just last week. We had the meatloaf. The meatloaf was on top of mash potatoes that were very thinly spread out across the plate under the meat. It seamed like there were only a couple tablespoons of the potatoes. I questioned the server and she brought me a very small ice cream scoop of potatoes in a small bowl for which I was charged $6.00. I am done with much of their dining there. Like Disney, I will be rethinking my options also.
How terrible is this I am feeling the same way about not going over their what do they think people are if this is the excuse of the covid this is not down to the public & they don’t seem to care as long as they’re lining their pockets can see them going down hill
It won’t be much longer until only the rich can thoroughly enjoy the Disney experience. How about cutting portions………… of top level greedy executives bonuses, or maybe dropping a few cents off the shareholder dividend? I know. Blasphemy!
Ice cream sandwiches decreased in size a couple years ago but prices have increased twice. Prime Time – Mom’s dinner far smaller portions but an increase in price by several dollars than before. Use to get a fantastic salad a Gasparillas with requested toppings. Not any more. No more foot long dogs at Casey’s but prices are not cheaper. Be Our Guest – have not been since this venue went to prefix. These are changes I can speak to as we have experienced all in last two months.
There is a petition to fire Bob Chapek . Disney fans need to stand up and protest before he and his minions ruin Walt’s dream. I’m not sure they read DFB or even care what we think.
I used to love Disney, but now the greed is just dripping from the executives’ mouths and it’s really shameful. Here’s a suggestion – executives should make (and this is still too much), maybe 3 million a year. So let’s start by clawing back the 30 plus million in comp and all stock options. Then make cast members salaried, not by the hour, and increase their salaries by $10 per hour (ie a living wage). Then Disney can start looking at running a good company, like what Walt did, instead of something just to line their own and shareholders’ pockets.
If I did not love Disney as much as I do, I wouldn’t feel so strongly. This is just shameful.
I am pleased that your blog has allowed honest feedback to be published on your site. Most would just publish glowing , positive, fluff.
We can only hope that Disney will remember Walt’s dream of a family place, rather than just a place to drain dry to buy one’s next yacht.
If they cut portion sizes then they need to cut the price we pay. You are taking all the magic out of the Disney experience. You will loose customers and someone else will pick up the ball and run with it to get your customers. You are pricing yourselves out of jobs!!!!!!!
You all should be ashamed of yourselves at disney world I hope walt haunts them all after all he is the one that built disneworld for the joys of families & children now look at what their doing I hope they loose it all wish them no luck
I suspect the next cost saver (profit improvement) will be adding LL to the quick serve locations, so Chepak/McCarthy can get another $5-10/pp for prime time food service (under the theory that if you pay $15/pp to save a few minutes in the ride queue that you will surely do the same for food — similar to the lawyer at the beginning of the Planes, Trains and Automobile movie).
That statement is such a time-deaf statement. Cutting portion sizes on alteady overpriced food is not a good idea. Also, the comment about being good for people’s waistlines is so totalwrong.
I Agree with everybody’s comments it is hard to justify what they are doing. Disney Family must be shaking their heads. Obviously the parks are now all about stock holder returns and the CEO pay.
I was very disgusted on part of her comment “We can cut portion size, which is probably good for some people’s waistlines” That was so in appropriate and unprofessional, She needs to be fired.
The middle and lower class will no longer be able to afford to go to the parks and see what Walt created for ALL families to enjoy. I recently had dinner at Storytellers cafe in the Grand Californian Hotel in Anaheim, the buffet was 60.00. all my daughter ate was chicken fingers, I got robbed. The guys carving the roast beef was like Scrooge, can you make the cuts even thinner, i will no longer patronage this establishment. not worth the money.
i too have no longer bought any passes and now only look for the local special price tickets
Prices continue to rise and portions and perks disappear. As a loyal Disney WDW attender for 35+ years, I’m beginning to reconsider my loyalty. I may start attending other parks in Orlando very soon. I’m very disappointed in the disregard for “the middle class person”. We’re being priced out by those whose only concern is making money. Walt Disney would not be pleased.
I think the biggest slap in the face is that extra magic hours used to be for anyone staying on property. Now it is only for the deluxe hotel guests. Somebody please explain that one.
We just got back the 26th from a week at WDW in Florida. We paid over $1500 for 7 dinners for 4 adults and 1 child. The food was mediocre at best. Not very many choices, maybe 4 per restaurant. Vegetable selection was the same at each restaurant, green beans or broccolini that were Not really cooked, just dipped in boiling water and unseasoned. Tenderloin was sliced thick, overcooked and underseasoned. One of our past favorites, Ohana, has substituted dark meat for the white meat and the beef was tough sirloin. We ate very little for the $55 per person pricetag. My 14 year old granddaughter ate off the children’s menu but we were still charged adult pricing. I dont mind paying if food is good, but this was bad. Next time we go, we will rent a unti with a kitchen and make our own food and save the money.
These recent comments match my friends and family’s recent experiences. Paying 5 star restaurant prices for Applebee’s quality food, and children’s menus portions.
We cancelled our March, September, December (2021) and February (2022) trips, and have not booked any more. Haven’t been since Feb 2020, don’t know when we will go again. Such a shame, used to be our favorite vacation destination for multiple trips a year. I guess after several decades, it’s time to move on. Disney is no longer “distinguished” from any other park, as they used to be. The “magic” is gone, and they seem like an overpriced six flags park with all the recent changes.
With this much negative comment, I have to ask… does Disney management read any of this or are they too far up the ladder to even care. This will be my last year for an annual pass… it seems the good old days were great old days and the new wave is drowning the Disney guest. I just can’t afford to pay the high prices any more. Time to find a new vacation spot…that is the only recourse the loyal Disney guest has to level the playing field. The family fun park has become the land of the rich and famous. Too bad.
Just read that Chapek was paid (notice I didn’t say earned) $32.46 million last year. Really? And they are going to cut food portions?
Last week, our family ate at “Cosmic Ray’s Starlight Cafe”, near Tomorrowland. That was a “less-than-desirable” experience. Cost for a cold hamburger and fries was $12.99, plus $3.99 for a soda (with no refill). On top of the quality, we had to stand in the line for 30 minutes, before we exited with our food. WDW employees need to be sent to a school, run by McDonalds or Burger King, to learn better customer service skills and more efficient and timely food handling skills. Maybe, WDW could design their own school, if they are so worried about the bottom line. None of the 8 members of our family had a positive comment.
Disney is no longer a fun or magical vacation destination. The fun is gone as everyone is too busy looking at their smart phones trying to see how fast they need to get across the park to the next ride. Instead of family fun conversations being heard throughout the park, the conversations are based on using the “new and unimproved (more out of pocket money)” Genie App and when the next LL reservation can be made “if we hurry.” Patrons spend most of the day running all over the place instead of enjoying each area of the park before moving to the next. Back and forth, back and forth. Without paying extra for the LL or even more for some rides, the wait times are way too long. There are so many other things that ARE actually fun that can be done in 90 minutes rather than wait in line for a 60 second ride. People are forking out $$$$$ prices for 1 star environment, entertainment, smaller portions, and “fast food chain tasting” food. The premium prices for EVERYTHING at Disney are not commensurate with the substandard quality (quantity). We are looking for a FUN, AFFORDABLE vacation destination…and Disney is not on the enormous list of the options.
@ Brad and Bernie says this is so accurate. Now, shrinking food portions is something going on everywhere, including your local taco stand or grocery store. Call shrinkflation. But your comment about the app and running around everywhere is so spot on. We went in January and YES the Genie+ and LL Individual purchases pushed us through lines with ease. Yes it cost us, but it was well worth it to not stand in the lines. However, SPOT ON that we rushed around everywhere. Everything was about managing the app. Swipe your band to get onto your reserved ride and you are furiously trying to walk to boarding while searching for your next Genie+ reservation to make. No relaxing, asking everyone well there is Pirates at4PM or we can get Rockin Roller Coaster over at HWS at 6, if we can make it. Constant checking your app to ensure you are on schedule, does it interfere with dining reservations, can I get into the line queue to buy a churro…Did I ride every key ride with ease? Yes. Did I enjoy myself and just hang out in areas? Nope. One of the best days we had was a half day at Animal Kingdom where we made zero reservations and just “hung out”.
The Disney (Chapek) strategy is clear, they are going to dial back customer service, eliminate free perks, charge for extras and reduce portions until such time as attendance begins to decline. They will balance that against the increased revenue caused by higher prices, fewer cast members, discontinued perks and other extras. It is only a question of time before they start charging for an on property transportation voucher and advance dinner reservations. This is no longer the spontaneous Disney we all knew and loved. Now you are attached to your phone and herded like cattle, with the need for park reservations they are creating a false demand. The only recourse is to stop going. But maybe that’s what they want so they can create their vacation resort for the well to do and elitists.
Brad and Bernie are ABSOLUTELY CORRECT. It used to be so easy to go to one LAND and go on all the rides in each land.now everyone is on there phone all day long rushing to rides available throughout each park. THE FUN AND CONVENIENCE IS GONE. Shame On You DISNEY
It appears that all of us are disappointed with what’s going on at Disney. My extended family usually meets at Disney world several times a year (we are mostly locals) but this year none of us purchased annual passes as usual. With all the price increases, the complicated passes for rides, park reservations, we are no longer interested. Now with portions of food possibly getting smaller, I’m sure attendance will keep getting smaller. What are they thinking? Where is the great customer service of the past? Disney is becoming the theme park of the rich.
We ate @ Prime Time, ordered the pot roast. A small piece of roast on top of a scoop of mash-n-talos with 2 slivers of carrot, knew it was carrot, cause it was orange, but no celery or onions and the salad was equally as meek.
Do any of these wealthy Disney executives read these posts?