CASE STUDY: Walt Disney Company Walt Disney is famed for its creativity, strong global brand, and uncanny ability to tak
Posted: Sat Feb 19, 2022 3:06 pm
CASE STUDY: Walt Disney
Company
Walt Disney is famed for its creativity, strong global brand,
and uncanny ability to take service and experience businesses to
higher levels. In the early 1990’s, the former CEO Michael Eisner
looked to the fast-food industry to draw additional attention to
the Disney presence outside of its theme parks – its retail chain
was highly successful and growing rapidly. A fast-food restaurant
made sense from Eisner’s perspective since Disney’s theme parks
have already mastered rapid, high volume food preparation, and
despite somewhat undistinguished food and high prices, all its
in-park restaurants were extremely profitable. From this
inspiration, Mickey’s Kitchen was launched. The first two locations
were opened in California and in a suburb of Chicago, adjacent to
existing Disney stores. Menu items included healthy, child-oriented
fare like Jumbo Dumbo burgers and even a meatless Mickey Burger.
Eisner thought that locating each restaurant next to existing
Disney stores was sure to increase foot traffic through both
venues. Less than two years later Disney closed down the California
and Chicago stores and shuttered further expansion plans. Eisner
cited overwhelming competition from McDonalds and general over
saturation in the fast- food industry as the primary reasons for
closing down the failing Mickey’s
Kitchen.
[20
marks]
Company
Walt Disney is famed for its creativity, strong global brand,
and uncanny ability to take service and experience businesses to
higher levels. In the early 1990’s, the former CEO Michael Eisner
looked to the fast-food industry to draw additional attention to
the Disney presence outside of its theme parks – its retail chain
was highly successful and growing rapidly. A fast-food restaurant
made sense from Eisner’s perspective since Disney’s theme parks
have already mastered rapid, high volume food preparation, and
despite somewhat undistinguished food and high prices, all its
in-park restaurants were extremely profitable. From this
inspiration, Mickey’s Kitchen was launched. The first two locations
were opened in California and in a suburb of Chicago, adjacent to
existing Disney stores. Menu items included healthy, child-oriented
fare like Jumbo Dumbo burgers and even a meatless Mickey Burger.
Eisner thought that locating each restaurant next to existing
Disney stores was sure to increase foot traffic through both
venues. Less than two years later Disney closed down the California
and Chicago stores and shuttered further expansion plans. Eisner
cited overwhelming competition from McDonalds and general over
saturation in the fast- food industry as the primary reasons for
closing down the failing Mickey’s
Kitchen.
[20
marks]