MickeyBlog News for March 22, 2020
With the gates closed at all the theme parks, nobody was sure what to expect this week in the wide world of Disney. Sadly, a lot has happened, most of it bad. The company did take at least two smart steps. Also, Jose Andres remains a hero, and we can watch an instant Disney classic at home right now. Let’s talk about what’s going on in the latest edition of MickeyBlog News.
Epcot Layoffs
The first story of the week hinted at what was in store at Disney. Three longstanding acts at the World Showcase ended. The news surprised all the performers, some of whom had worked there since the 1990s.
EPCOT hosted the final shows for Matsuriza Taiko Drummers last weekend. Only hours after the musicians at the Japan pavilion learned their fate, they had to go out and drum for the last time. Thankfully, audiences gave them well-deserved ovations for their contributions over the years. I can’t even imagine walking around the World Showcase without hearing those percussions.
Disney also ended British Revolution concerts at the United Kingdom pavilion. The band had entertained guests for many years. Their shows included a mix of classic British rock music from the 1960s through modern classics. I’d actually never even cared for Champagne Supernova until I heard it sung here. Now, it’s a personal favorite. So, I’m really bummed about this news.
Finally, one of the most likable performers at the World Showcase got fired, too. Sergio the Master Juggler can balance a soccer ball like nobody’s business, and he’s held court at the Italy pavilion for a long time now. Unfortunately, as part of emergency budget cuts, Sergio lost his job.
Disney Springs Takes a Beating
The news at Disney Springs is so grim that I don’t even know where to begin. I’ll start with the most alarming information. Some hotels at the entertainment complex have announced that they’ll remain out of operation through April 30th.
All of them are third-party rather than Disney resorts. Still, these businesses believe that Coronavirus concerns will keep them closed for five more weeks. If that’s the case, Disney lovers face a challenging April, one without any park magic.
Perhaps because of this fear, several other Disney Springs businesses acted drastically. Landry’s Inc. laid off its full staff at T-REX Restaurant and Rainforest Café. Employees were the ones who leaked the news about this decision.
Photo credit: MealTrip.com
While that may sound like panic fire, Landry’s wasn’t the only one. Chef Art Smith’s Homecomin’ also fired its entire staff. Splitsville, the bowling alley restaurant hangout, did the same thing, too.
In fact, one company had to take even more drastic steps. Cirque du Soleil laid off 95 percent of its staff worldwide in the aftermath of the COVID-19 pandemic. The only people who remain are those in charge of ticket sales, many of which are ticket refunds at this point.
This decision places Cirque du Soleil’s Drawn to Life in turmoil. A MickeyBlogger apparently had expected to watch the new show this week. Instead, everyone working on it is now without a job. So, even after normalcy returns to society, Drawn to Life performers will need more practice, and some of the previous ones may not return to the show.
Feld Entertainment has also laid off 90 percent of its staff. You may not know the name, but this company is responsible for Disney on Ice shows.
The Kindness of Jose Andres
I do have one bright spot in this story, though. Jose Andres, who is the person I want to be when I grow up, went the other way. The Nobel Prize-nominated restauranteur recently turned his Washington D.C. eateries into community kitchens.
Now, Andres has done something profound at Jaleo. He has started selling discounted gift cards for the restaurant. People get 20 percent off the gift cards that they can use when Jaleo re-opens. Meanwhile, the money from these sales will go to an Employee Support Fund.
Photo Credit: Our Local Commons
The company posted this statement on its Instagram feed:
“In response to an outpouring of support from the community about how to help our team during restaurant closures, we created a special e-gift card program. Starting today, you can purchase a gift card for 20% off, and all of the money will go directly toward our employees: half of it to extending pay and benefits beyond two weeks, and half of it to ThinkFamilyFund, which provides relief to our team and their families during financial hardship. Visit #linkinbio for more details or to purchase a gift card, and thank you to everyone for helping us through this difficult time.”
https://www.instagram.com/p/B964XvxBp7v
If I voted for the Nobel Prize, Andres would have at least three by now.
Two Smart Business Decisions
Early in the week, another round of baseless speculation recurred. For years now, some shareholders have tried to stir up interest in an Apple purchase of Disney, which neither party wants. Each time it happens, Disney looks weaker, which isn’t ideal. It’s also brutally unfair, but that’s beside the point.
This time, Disney executives did something smart. Facing an unprecedented financial crisis, the company gained $6 billion through banknotes. With interest rates so low, the company took this opportunity to secure its finances in the short-term.
That’s the business side. On the fun side, Onward is suddenly available on digital! Yes, you can purchase the movie for $19.99 on Vudu, Apple iTunes, Amazon Prime Video, and FandangoNOW, among other digital retailers. Even better, Disney will launch Onward on Disney+ on April 3rd, which is less than two weeks from now!
Given the unprecedented state of movie theaters right now, Disney decided to capitalize on the awareness for Onward. The company just spent tens of millions of dollars promoting the film. Now, Onward can drive sales for Disney+, a possibility that I’d discussed the other day.
This move may not seem like much. However, if Disney+ subscriptions go up dramatically, the company earns back some of the lost revenue. Robert Iger has stated that Disney’s profit on a $6.99 subscription is $5.56. The company negates Onward’s short-term box office losses if enough new people sign up for Disney+.
Disney’s in an extremely challenging situation right now. I think we should all feel good about the fact that the company’s making such smart decisions rather than panicking.
