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Disneyland has been raising food prices. Blame inflation

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Disneyland has been raising food prices. Blame inflation

Even inside the partitions of the Happiest Place on Earth, there’s no escaping inflation.

Disneyland patrons coming into the park are used to enduring common value will increase for each day tickets, annual passes and parking. They’ve accepted a brand new payment to skip the traces on the preferred sights.

And so they’re having to spend extra as soon as they get inside as nicely, with costs on foods and drinks objects rising by as a lot as 12% over the past two years.

A mint julep that offered for $4.99 in 2020 now prices $5.49. An Angus beef burger that offered for $14.49 two years in the past is now priced at $15.49. A drink referred to as the Tatooine Sundown climbed from $5.49 to $5.99 over the identical interval.

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Some prospects have additionally complained about parts shrinking — one thing a Disney government steered throughout an earnings report final 12 months may be enacted to assist get monetary savings, however which the corporate denies doing.

The worth will increase come as inflation has hit a four-decade excessive, spurring the Federal Reserve to lift rates of interest aggressively in a bid to quell it.

For Disneyland followers, the added meals prices come on prime of jumps in ticket costs, up as a lot as 8% final 12 months, and parking, which soared 20%. The brand new skip-the-line payment, launched in December 2021, provides $7 to $20 per trip for many who pay it.

Some say they’re fed up.

“I’ve positively seen that the costs are going up, and that the ‘value flooring,’ relying on the dish, are getting increased and better,” stated Hastin Zylstra, a longtime theme park fan in Santa Ana.

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He was notably upset at lately paying $12 for a sandwich on the Sonoma Terrace restaurant at Disney California Journey, with no facet dish. “No chips or something,” Zylstra fumed.

Disneyland representatives famous that the resort is coping with the identical financial strains going through grocery shops and eating places. Meals costs nationwide jumped 10.5% within the 12 months that resulted in June, in accordance with the U.S. Bureau of Labor Statistics.

In addition they level out that park guests can carry their very own meals and nonalcoholic drinks into the park, with some exceptions.

A Occasions evaluation of six Disneyland and California Journey Park menus over the past two years discovered a handful of drops in meals costs. Apple juice on the Galactic Grill at Disneyland dropped from $2.69 to $1.99. Funnel desserts on the Hungry Bear Restaurant at Disneyland fell from $8.99 to $7.49.

Of the opposite meals objects on the menu in each 2020 and 2022, about as many elevated in value as stayed flat.

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Meals parts on the park haven’t modified, Disneyland officers say, regardless of a remark made throughout a November 2021 earnings report by Christine McCarthy, senior government vice chairman and chief monetary officer, about methods the corporate can battle the consequences of inflation.

“[T]listed below are plenty of issues which can be value speaking about,” she stated in response to a query by an analyst. “We will modify suppliers. We will substitute merchandise. We will minimize portion dimension, which might be good for some individuals’s waistlines. We will have a look at pricing the place crucial.”

Some park guests say they’ve seen portion cuts.

Within the second quarter of 2022, the phase of Walt Disney Co. that features theme parks collected $6.7 billion in income, in contrast with $3.2 billion in the identical interval within the prior 12 months, quickly after the parks reopened from the pandemic.

“Visitor spending development was attributable to a rise in common per capita ticket income, increased common each day resort room charges and a rise in meals, beverage and merchandise spending,” in accordance with Disney’s earnings report.

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The rise in theme park costs isn’t restricted to Disneyland. Greater labor prices, gasoline value hikes and inflation generally, together with provide chain issues, have pushed meals costs up at theme parks throughout the nation, in accordance with trade consultants.

“In our trade, sure, meals costs have elevated essentially to regulate for the price of meals and labor, however actually it’s not any totally different than any restaurant on the road,” stated Ken Whiting, a meals guide for the theme park trade and chairman of the Worldwide Assn. of Amusement Parks and Points of interest.

On the Wizarding World of Harry Potter at Common Studios Hollywood, Butterbeer, a delicate drink flavored with cream soda and butterscotch, offered for $5.50 when the park opened in 2016 ($6.50 for a frozen model). All variations of Butterbeer in the present day promote for $8.00, a forty five% value enhance.

“In line with the meals service trade, we modify costs based mostly on market situations,” a Common Studios Hollywood spokesperson stated.

On a handful of meals objects comparable to churros and popcorn, Disneyland’s costs are surpassed by costs at rival parks comparable to Knott’s Berry Farm in Buena Park and Common Studios Hollywood.

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In theme parks, simply as in grocery shops, managers don’t move alongside all value will increase persistently throughout all meals objects however as a substitute increase costs on these meals that received’t immediate robust pushback from customers, stated John Gerner, a theme park guide and managing director at Leisure Enterprise Advisors.

Worth hikes on some meals, comparable to seasonal choices like Christmas cookies or Halloween drinks, received’t spur client anger as a lot as will increase on extra typical objects comparable to hamburgers and delicate drinks, trade consultants say.

Theme park managers “are in a dilemma proper now,” he stated. “They’re feeling their method on all of those questions.”

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.

The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.

The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.

Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.

“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.

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Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.

The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.

The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.

Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”

Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.

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This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.

Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.

Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.

Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.

“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.

The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.

“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.

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According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.

Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.

“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”

Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.

Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.

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Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.

High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.

If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.

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U.S. Sues Southwest Airlines Over Chronic Delays

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U.S. Sues Southwest Airlines Over Chronic Delays

The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.

In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.

“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”

Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.

In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.

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“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.

Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.

The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.

“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.

The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.

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The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.

This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.

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