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Kings Island Lays Off 15...Restructures


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http://news.enquirer.com/apps/pbcs.dll/art.../608120337/1076

Kings Island lays off 15

Owner restructures operations

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

Kings Island said it has laid off 15 employees as its new owner Cedar Fair restructures and integrates the amusement park into its operations.

Sandusky-based Cedar Fair, which also owns Cedar Point and Knott's Berry Farm, said the move on Thursday eliminated some overlapping functions since two new managers have assumed oversight.

"A number of duplicated positions were reduced by the company here yesterday," said Maureen Kaiser, a park spokeswoman, who added the 15 managers and other employees received severance packages.

Cedar Fair acquired Kings Island in Mason in July with four other amusement parks in a $1.24 billion deal with CBS Corp., which sold its Paramount Parks unit, including Kings Island. Following the acquisition, the company now owns 12 amusement parks, five outdoor water parks, one indoor water park and six hotels.

While mulling the future direction of its acquired parks, Cedar Fair has indicated in government filings that it doesn't plan to rename the park, noting its "strong local brand." The company said Kings Island did $108 million worth of business last year.

After opening this year the largest collection of Nickelodeon-inspired attractions at any amusement park before the takeover, Cedar Fair has also signaled in filings that it plans to keep the features.

The company, however, has indicated it might reduce its association with Paramount - including such Kings Island rides as the Italian Job and Top Gun - after the current season after studying customer opinion. Such a change would cut the company's royalty expenses.

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(It is unfortunate that people are losing jobs. Usually, acquiring companies don't move quite this rapidly in moving in their own people AND moving out the old managers, especially when the company they acquired is nearly the same size as, or larger than, the acquiring company. This is a mark of supreme confidence at Cedar Fair in its own people. Let's hope that confidence is well justified.

The 15 were managers AND other employees. I wonder what the ones who weren't managers were...

Note something else about that article. Cedar Fair does not intend to rename the park. Note, too, that there is not a single reference in the article to anything called 'Paramount's Kings Island.'

We, as unit holders, as employees, as customers of the parks, or as former customers of the parks are going to find out soon if Cedar Fair's strategy is a good one, or more like that of the old Premier Parks. It's going to be an interesting ride...)

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So they're thinking of foregoing the "Paramount" things like Top Gun and Italian Job. I suppose that's OK - Top Gun can be renamed anything - even Fairly Odd Coaster II if they want, but Italian Job - that whole thing is based on the movie and to retheme it would pose problems for the people at CF. Maybe they could call it "Snoopy's Cops & Robbers".

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There's already a reference to CP on the IJST.

Wouldn't take that much retheming.

And Chef, note that in the article they say they won't rename the park, but they don't call it Paramount's Kings Island even in the article. I think the park, in the eyes of the public, will not be renamed. It will continue to be that which most have always called it, Kings Island.

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So they're thinking of foregoing the "Paramount" things like Top Gun and Italian Job. I suppose that's OK - Top Gun can be renamed anything - even Fairly Odd Coaster II if they want, but Italian Job - that whole thing is based on the movie and to retheme it would pose problems for the people at CF. Maybe they could call it "Snoopy's Cops & Robbers".

Nah! The Italian Job is VERY easy to re-name. It is based on a real location in Los Angeles. They can come up with a variety L.A.-inspired rides, such as L.A. Speedway.

I think that getting rid of the Paramount theming is a good way to save money and signal to the public that CF is he owner. However, I very much hope that they drop the name "Paramount" from the park for the same reasons.

And I feel very sorry for the 15 managers who are losing their jobs. I hope that they will find new and better paying jobs soon.

Have a great weekend!

Italian Chef

chef.gif

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I am wondering whether those 15 people came from Kings Island or from Paramount Parks Corporate HQ in Noth Carolina. If there is any overlap, it is surely at PP HQ and not at the individual parks.

And I hope to no longer see the name "Paramount" next season. Dropping the Paramount name would in my mind cement the transition in park ownership.

chef.gif

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Maureen said they were reduced by the company "here." I don't think the layoffs referred to in the article were at corporate headquarters in Charlotte, but rather were at Kings Island itself. During the conference call after the acquisition was announced, Mr. Kinzel said there were considerable synergies and cost savings to be achieved. I suspect this is one of the first of them. Many services that Paramount provided at the park level will probably now be provided regionally or even chainwide. Whether this is visible to the customer or not remains to be seen.

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I suppose cuts are to be expected in any type of merger like this. What Cedar Fair is seeing here is that the ratio of attendance to revenue isn't quite as big as it could be. 3.5 million guests and 108 million in revenue doesn't even come close to what Cedar Point did with about 3.2 million. There's money to be made at Kings Island, and not from raising prices either. Cedar Fair is paying licensing and royalty fees for using Paramount material. That means that they are paying rights for the Paramount theming, which in all honesty isn't justified given the quality of most of it (Not that it's bad, just too expensive for the park to use well). They are also dishing out a cut of all the Paramount labeled merchandise that they sell. Those kinds of things can really eat into profits, especially in the merch department. Cedar Point makes a killing off of merch, because they do their own and they sell a ton of it. Rarely do you see a non Cedar Point licensed piece of merchandise in the park. At Kings Island I bet that maybe 40 to 50 percent of the merch in the gift shops don't even bear the parks name. Also the food prices are becoming increasingly higher. I found myself more and more eating outside of the park this year simply because 9 bucks for 2 slices of LaRosas and a Coke (soon to be Pepsi) is a little too much for me. By cutting back their overhead costs, they will be able to lower some prices like they did up north and pass savings along to guests. They don't need the Paramount licensing, however I do have two words....

Keep Nickelodeon

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I am confused. If they won't rename the park....does that mean they will keep the "Paramount" or drop it in the Kings Island name. Does anyone have an idea?

Have a great weekend!

Italian Chef

chef.gif

Seems to me that Paramount Name will be gone.

I'm sorry to see it but I think it's pretty obvious at this point that CF has had a contempt for Paramount. The Paramount folk are only the first to see that wrath.

I guess it really may have been Winterfest was cancelled so that CF could sponge all things Paramount from the parks.

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Bring on the Pepsi, Roaming beer carts and axe the Paramount name...hehehe

Well from what I read in Dayton Daily News not to long ago Coke will be with Kings Island for the next 10 years they signed a deal not to long ago besides if Pepsi comes into the park I wouldnt buy it I hate Pepsi.

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While mulling the future direction of its acquired parks, Cedar Fair has indicated in government filings that it doesn't plan to rename the park, noting its "strong local brand." The company said Kings Island did $108 million worth of business last year.

After opening this year the largest collection of Nickelodeon-inspired attractions at any amusement park before the takeover, Cedar Fair has also signaled in filings that it plans to keep the features.

The company, however, has indicated it might reduce its association with Paramount - including such Kings Island rides as the Italian Job and Top Gun - after the current season after studying customer opinion. Such a change would cut the company's royalty expenses.

What they mean is the name "Kings Island" is here to stay. Knowing Cedar Fair, they're better known for maintaining traditional names, and in the case of their Aurora, OH park, bringing back such names.

When I went into the Emporium on International Street last night, I noticed some of the shirts (featuring the 70's style star design) missing the "Paramount's" name, and I asked the associate why. She said that the Paramount is going to be dropped. So, this must mean that they're no longer ordering merchandise with the Paramount name, even if the styles remain the same.

So, Chef, you could say, that a new foundation is being poured...

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That is his point. They no longer say Paramount on them, which is an indication that Cedar Fair intends not to keep the Paramount name attached to the park`s name beyond this season. As such, when they reorder merchandise, they are reordering merchandise without the Paramount moniker.

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That is his point. They no longer say Paramount on them, which is an indication that Cedar Fair intends not to keep the Paramount name attached to the park`s name beyond this season. As such, when they reorder merchandise, they are reordering merchandise without the Paramount moniker.

I'm sure he was well aware of the point, what he was saying is that they used to sell the same shirt with a paramount type above the Kings Island part, they have sold that style of shirt since 2004, I am the owner of one. This does not confirm though that CF will not use Paramount licensing as no official word has been released.

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Being as Paramount was virtually famous for not selling ANYthing (until very recently) without its moniker on it, I'd say it is a darn good indication of one of two things:

a. Cedar Fair is reordering merchandise without the "Paramount," or

b. CBS, knowing the park was for sale, ordered some merchandise without the Paramount on it, and/or did so knowing IT might not have kept the Paramount's nomenclature, even if it had kept the parks (they had done surveys about dropping it)...

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b. CBS, knowing the park was for sale, ordered some merchandise without the Paramount on it, and/or did so knowing IT might not have kept the Paramount's nomenclature, even if it had kept the parks (they had done surveys about dropping it)...

Wow, they really did a survey on keeping the name?

I've asked this before, but I'll ask again, who does these surveys? Is it done in-house by the park?

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