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Non-Tech : RAINFOREST CAFE -- Ignore unavailable to you. Want to Upgrade?

To: Brent A. Thale who wrote (3983)	2/5/1998 2:16:00 PM
From: Dan B. Brockman	Respond to of 4704

Ok so I made a mistake. Stir Crazy is it. I guess I was so depressed after my RAIN exposure I forgot to write it down. It's competition, but I don't think for kids appeal it has much to offer except price. And we did get a $1.99 kids meal special menucard at the RAIN...and a survey form also.

To: Brent A. Thale who wrote (3983)	2/5/1998 2:18:00 PM
From: Dylan	Read Replies (2) \| Respond to of 4704

More conference call comments: Here's what I found interesting... This isn't written very eloquently, but rather as a quick summary... For Q4, restaurants were 80% of revenues and retail was 20%. They said that retail sales were a larger percentage of revenues in January. In units that were down in Q4, both retail & rest revs were down. In Disney, rest revs were up more so than retail. Expected annualized SSS: Tysons 11.3 million (down 20% in Q4) Sawgrass 9 million (down 20% Q4) both of these are starting to improve London 10-11 mill (improving each quarter after very slow start) Cancun 6 million (smaller unit) Mexico City 5-6 mill. (small) remember that they only get royalties from these three Plans for 1999 may include more Mexico, South America locations as development cost is much less than other units Early 1999 for Times Square. Lease not finalized. They hope to have all of their leases ready for 1999 by mid 1998 in order to open them more evenly throughout the year and to have more time to plan. They plan to improve marketing of return customers. Maybe make it easier (reservations at Tysons or SCP) or coupons or something. Different environments at two Disney locations. Downtown has volcano entrance and AK has waterfall (like MGM?). Reasons for low margins: High construction costs. Inefficiencies in openings Olypics will have some impact, which should be offset by extra week in quarter. They are "comfortable" with 1.10 -1.15 EPS for year Soft opening at AK will offset extra expenses due to high preopening costs. Don't expect any AK revenue boost for Q1. AK closes at 8pm. Disney will provide late transportation. AK may also have private parties or special events at nights if traffic is too slow after park close. MGM has breakfast menu and will likely keep it if successful. 4 types of locations: 1) Tourist units: Will continue to have similar mix of retail items. Will increase amount of merchandise with "name-drop". 2) Mills Type: Discount malls will offer more of the less expensive items, cheaper pricing system (2-3% reduction in margin expected) 3) Regional malls: Gift type items, less apparel. 4) Hybrid (i.e MOA) Try to mix local and tourist items. Plan to make many new locations around 13000 square feet instead of present size. These would probably have smaller retail areas but same number of seats as MOA. That's about all I have to add to Dennis' comments.