FUN Names new Corporate VP for Food Service

[The Interpreter]

Hmmm.

Levy Restaurants.

Lone Star Steak House.

http://www.marketwatch.com/story/cedar-fair-names-craig-grimes-corporate-vice-president-food-service-2012-03-26

I think I will cite without further comment.

[shark6495]

So all these changes... looks like FUN maybe trying to get back to the idea of Theme Parks for Families... instead of a thril park... but thats just my opinion...

[shark6495]

side note... if a park would drop its prices to be competative to the outside food services (a $6-7 burger/fry/drink combo) would the park make more money in the long run versus a $12 combo price and you only get half the purchases.....

[The Interpreter]

From the operator of the finest Italian restaurant in Orlando and the award winning Potobello Yacht Club at Walt Disney World. Also food provider at Churchill Downs....

[The Interpreter]

KI Names New Food Director:

http://m.daytondailynews.com/dayton/pm_20555/contentdetail.htm?contentguid=oqxhkv2t&rwthr=0

[PREMiERdrum]

Good move, in my opinion. Pricing isn't really the food issue in the CF chain; Quality is. Pricing is in line with most other captive-audience venues.

What this move really signifies to me is that they might be getting serious about worthy in-park sit down dining. The implications and "trickle down" of one or two really good sit down restaurants inside the gate could do very good things for the lesser options.

[shark6495]

Good move, in my opinion. Pricing isn't really the food issue in the CF chain; Quality is. Pricing is in line with most other captive-audience venues.

What this move really signifies to me is that they might be getting serious about worthy in-park sit down dining. The implications and "trickle down" of one or two really good sit down restaurants inside the gate could do very good things for the lesser options.

I dont disagree that the quality is. I was just wandering outloud onto the message board if the prices dropped what the outcome would be... I think its a great idea to hire people who have one specific job to control and ensure quality across the board.

[Avatar]

This is great news adding to PREMiERdrum's comment what this signals to me is that they are serious about keeping guest in the park to spend their money. Good Quality food at different prices levels to entice all price budgets.

[medford]

side note... if a park would drop its prices to be competative to the outside food services (a $6-7 burger/fry/drink combo) would the park make more money in the long run versus a $12 combo price and you only get half the purchases.....

Good question. How many season pass holders come on a weekday/saturday/sunday afternoon but jet before dinner and don't come back to the park. How much money is lost b/c they can find better (and cheaper) options 5 minutes away and aren't around to purchase their smurf cone or an extra T-shirt, or whatever.

smurf cones are about the only thing in the park that I've heard people crave. They need more items that are "must haves" to your KI experience.

[TTD-120-420]

Like Pink's at Cedar Point. It is a can't miss on any CP trip.

[Airtimeluvr]

I second that idea about Pink's. That will be the first stop after entering the park, can't wait for a Pink's coney with mustard and sauerkraut on arrival May. 18th.

[Browntggrr]

How many season pass holders come on a weekday/saturday/sunday afternoon but jet before dinner and don't come back to the park.

Even if it is a franchise restaurant located outside the main gate; I would be very happy with a traditional sit-down option, and I assume many others would be as well.

[LongLiveTheSmurfRide]

I forgot CP got Pinks. It's really that good? I wanted to try them before but didn't want to go to California.

I've heard a few people crave Potato Works at KI, but after having the fries at Kennywood; THOSE are some fries.

[kingsrattler]

I was a fan of Pink's at Cedar Point, and comparative for amusement park food, it isn't horribly priced.

As for Potato Works, I have had grand experiences, and horrible experiences there.

[Leland Wykoff]

Pricing model is difficult and a multifaceted puzzle. In seasonal operations prices are always higher as the revenue must cover the capital costs of the down time of the off season. Building, maintenance, and equipment costs continue year round. Revenues must cover those costs year round as well.

That said, quality of the experience should be a fair value. Whilst on-park the dining experience is effected by the overall ambiance of the park, specific sub themed area, restaurant design and service style, and of course, cuisine offering. A variety of offerings enhance the overall experience. Having stand-out offerings go quite a way toward enlivening the park and the total guest experience.

Examples abound. Who would think of going to Knott's Berry Farm and skipping the chicken? Or how Kennywood has elevated the lowly French Fry to a dish worthy of the cuisine label? Pinks at Cedar Point has done the same--making it not just another hot dog. The fresh baked cinnamon bread at the mill at Dollywood is worth the trip.

Pricing is a sticky wicket. The price must be adequate to cover the added costs of seasonal operations. Captive audience pricing also commands a premium.

To address Shark6495's question, the park would make more money selling the $12 dollar combo over doubling business with two $6 meals. The math makes it simple: two meals revenue $12 minus food cost for two meals would leave less revenue to cover all other costs--known as the "contribution margin"--than one twelve dollar meal minus the food cost of one meal. Thus the park would make more on the $12 meal. The real question becomes the caring capacity of the specific location and if that capacity is adequately being utilized. If utilization is sub par, due primarily to price, revenues and profit can be increased by adjusting price to generate additional sales.

Simply lowering prices will not necessarily make more money. Increasing quality and the overall experience for the money is often the better tactic. That drops more dollars to the bottom line.

[jcgoble3]

Leland, good points. The "stand-out offerings", as you put it, do help tremendously. When I went to Cedar Point for five days last June, I opted to stay on the peninsula for the whole trip for the sake of convenience, and the only food service location inside the park I ate at twice that week was Pink's, simply because of the quality of the food there.

I admit that I hadn't thought of how seasonal vs. year-round operation affects prices. I've always held the position that food prices at KI need to be reduced, but considering what you said, I now see why that won't work. I still think there's a little room for improvement with prices (particularly with soft drinks), but I'll settle for improved quality. That, however, does not guarantee I will go back to eating in the park all the time; I'm still on a small budget, and while I may grab a meal inside the park occasionally, my budget can't afford to do that all the time.

[The Interpreter]

I know Leland meant carrying capacity, but seriously, at Cedar Fair under Mr. Kinzel, there really wasn't much caring capacity when it came to food quality, service and selection. His attitude was people gotta eat and he really either didn't understand or just didn't care that people could and did often choose to eat...elsewhere, taking time and money that could have been spent in the park elsewhere.

[shark6495]

To address Shark6495's question, the park would make more money selling the $12 dollar combo over doubling business with two $6 meals. The math makes it simple: two meals revenue $12 minus food cost for two meals would leave less revenue to cover all other costs--known as the "contribution margin"--than one twelve dollar meal minus the food cost of one meal. Thus the park would make more on the $12 meal. The real question becomes the caring capacity of the specific location and if that capacity is adequately being utilized. If utilization is sub par, due primarily to price, revenues and profit can be increased by adjusting price to generate additional sales.

Simply lowering prices will not necessarily make more money. Increasing quality and the overall experience for the money is often the better tactic. That drops more dollars to the bottom line.

Thats the root of my question. I get that if you could sell 20 meals at $6 each would be less profit than 10 meals at $12 each. If each meal costs the park $3 then the difference is obvious. But correct me if I am wrong, wouldnt the park make more profit if they could see a 3-4x increase by droping the price in half than keeping it? Again, this is all speculation. As a business you want to charge the most you can while still keeping the same profit (or more). If the food and service are good + a captive audience then prices are justified to be a bit more expensive.

But look at what Cincinnati Reds have done. They added a $1 menu to the ballpark. The food servings are smaller but the ball park has obviously seen a reason to keep these types of menu options available as it has helped keep dollars coming into the ball park (versus being not spent by people bringing their own food/drinks).

[PhantomTheater]

I know Leland meant carrying capacity, but seriously, at Cedar Fair under Mr. Kinzel, there really wasn't much caring capacity when it came to food quality, service and selection. His attitude was people gotta eat and he really either didn't understand or just didn't care that people could and did often choose to eat...elsewhere, taking time and money that could have been spent in the park elsewhere.

The public pavilions got more and more crowded as in park food lines got smaller and smaller. The one day I sat at a broken table because all the others were occupied.