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This past
Sunday,
The
Post-Star sat down with Mark Shapiro at Trappers' Restaurant at
the new Great Escape Lodge & Indoor Water Park for a lengthy
interview. After this interview was conducted, his wife Kim, and
their 2 sons, Jack, 5 and Jeffrey, 2, crossed the
new pedestrian bridge
over Rt. 9 for a visit to The Great Escape.
Shapiro touches many
subjects in this interview, and to date - this is the only public
interview that Mark Shapiro has conducted, that specifically talks
about the expansion of The Great Escape, and Six Flags as a whole
concerning food prices, etc.
Here's the
interview..
Q:
What's your sense of how much this park will be able
to grow?
A:
You know, we do have places where we can expand.
We have older areas
that we can update. You'd be surprised at how creative our company
can be. We have some space, and any good business is constantly
evaluating. What do we have that can use a tune-up? What do we have
that can use a face-lift? What do we have that could stand to be
moved out for something more exciting and popular? You know we have
acreage, and others are selling their own acreage in and around the
park. So is there opportunity? Yes. But I'd like to see us really
determine our long-term expansion plan.
Q:
You were in sports for a long time. Did you see
yourself going back to something like that?
A:
No. I love this. I'm just grateful for what's here,
and I'm excited about it.
I love sports. I'm
a fan. I'm a bigger fan now that I've left sports, but I did it for
12 years.
I'm ready to go
back to games and view the games as I used to as a kid - you know,
like with my kids, not thinking about the ratings.
Funny, I left a
business where rain was great for my business - the rain kept people
inside, and they watched more television - moving to a business
where rain kills your business.
Q:
How are you perceived? Does your age help you or hurt you?
A:
I'm a very passionate person. I believe in putting
both feet in everything you do. I have a lot of energy, and I'm
inspired by what I do. I'm a fan of what I do. The day you stop
loving what you do is the day you should do something else.
I don't think that
age - certainly it was a factor when I achieved some success or a
promotion when I was mid '20s - but I think now, I'm well past that.
It's not a hindrance. It's not a benefit. It is what it is. I'm
grateful for the opportunities that I've had, and I'm excited about
the challenges that lie ahead.
Q:
You've been In the Job about six months or so. What
is your overall view of the amusement park Industry In general? How
Is the Industry changing?
A:
I think it's a healthy business because people have,
no matter how limited it might be these days, people do have
discretionary time, and they work hard to carve out disposable
income that they can spend.
No matter how busy
they are, parents want to get out with their children. They're not
going to sit in the house every weekend, they're not going to sit in
their house all summer long. They're going to get outside. Does that
mean they can go hiking? Of course. Does that mean they can take a
boat ride? Of course. Does that mean they can go fishing? Of course.
But they're going to have several options. And because of that, I
think the theme park will always have a strong foothold because it
is a great diversion.
It is an experience
if you do it right.
And not only does
it provide fun and laughter, but it provides thrills. People come to
a theme park, and they don't just laugh. Sometimes they're
frightened to death. It brings out emotions in all of us, in one
setting, in one period, that don't normally take place in one day,
in one hour. That's a long time, I think it's a great value. You can
spend 10 hours a day for one price.
I think it's a
healthy business because people want to get away from the "every
day". They want an escape. They want a diversion. They want to be
entertained. They want to forget about their everyday troubles. And
a theme park, especially Six Flags, is one of those places I believe
is delivering on all of that.
Q:
Six Flags has been struggling, though, due to past management
decisions. Can you turn that around?
A:
They (past management) bought parks that were overpriced, and then
sunk a lot of money into the parks, and then couldn't understand why
the return wasn't there. The return wasn't there because the parks
were overpriced in the first place. Their profits were generated by
cutting back on expenses. That's not how you grow a business. You
grow profits by growing a business.
You make an
investment, you want to reap a reward. And their idea of fixing a
business or squeezing out profits was to cut back on expenses -
cutting back on labor, cutting back on characters in the park,
cutting back on service, cutting back on training, cutting back on
appearance, cutting back on presentation, cutting back on all of
those intangibles that I as a consumer look for when I enter a park.
When I go to a park
with my kid I'm not getting on any (thrill) rides. I'm going on
kids' rides. So for me, what would be at the top of my list? Well It
sounds weird, but presentation. It's painting. It's landscaping.
It's lighting. It's security. It’s cleanliness. Those intangibles
are so vital, and what happened was, it was all being cut back. This
is not the Six Flags of SIX months ago. It wasn't the Six Flags I
grew up on. We don't have to be better than Disney. .
We don't have to be
Disney.. We have to be a better alternative to Disney.
Q:
But It raises your costs, obviously.
A:
That's my point. I don't know how deep we can go, but
we have to jump into it.
You can hire better
leaders, more people. You can make a big difference.
Q:
Do you like the Idea of the lodge?
A:
I love it. I love it. I fell in love with this place when I first
arrived. I think it's a terrific blueprint for something we could do
across the board as the years go on. We can't take a lot of risk on
the investment right now. We're looking to de-leverage, not to add,
but if we can get a partner who wants to come in, certainly. What do
we bring to the table? We bring property. We bring land to the
table. And we bring expertise ... but we're just looking for a
partner that's going to assume some risk - or the lion's share - of
the risk.
Q:
Do you see a shift in family priorities, and do you
think Sept. 11 contributed to the shift toward home entertainment?
A:
I think 9/11 certainly had an Impact on any
outdoor business and any entertainment destination because families
want to stay home. They want to be close to home. They want to feel
safe and secure. Many times, the best way to feel safe and secure is
in your own environment. That's why I think places like this place -
all of Six Flags - has a leg up on some of the competition because
many of our parks aren't bigger than Disneyland but all of our parks
are closer' to home, and that means a lot because you do have that
security. And as we look to expand our park, I see our parks as much
more than rides - much more than shows ... There is nothing off
limits. The only thing holding us back is our own imagination.
In the past,
management did not encourage you to create to imagine, to explore,
for two' reasons. One, I don't believe that was their background.
They were bankers'
they weren’t marketers. They didn't have an entertainment pedigree.
And secondly, because of the company's balance sheet, it was more
about squeezing expenses instead of taking the hit and growing the
investment.
Because long term,
you can grow the investment that same profit will be there but
probably much, much more.
I walked into a
company where some of the people were desperate. They were
miserable, and they had sacrificed for too long, and they were just
waiting for the sun to come up.
And I'm not saying
the sun has arrived; it's still a little cloudy.
But I do believe
the employees generally believe this management team cares about
them and cares about their aspirations and their own growth and
wants them to be creative. We solicit ideas. We solicit creativity.
Q:
How much authority, control, personal involvement do
you take as CEO?
A:
There's a lot of responsibility on my shoulders. When
it's raining in Lake George or cold in Lake George, and people
aren't showing up, it's not just Scott's (Maupin) problem. It's my
problem. I'm a very hands on CEO because I believe in getting my
hands dirty. I want them to know my hearts into it and my blood,
sweat and tears are into it the same way theirs is. It's a demanding
job, as I believe any job is. I might have a lot of pressure, but
I'm not working harder than anybody else. There's only so many hours
in a day. I'm working them. You just have to divide up your time,
and you have to delegate. You surround yourself with the right
people, there is no limit to where you can go.
There's a lot going
on looking at parks, reviewing performance, meeting with analysts,
meeting with potential investors, meeting with potential
advertisers, assessing our real estate progress on the portfolio on
the land, .improving the service and performance of the company.
And then, of
course, the employees and the morale - that they’re cared for and
that we're putting out the proper incentive packages. You know, it
doesn't stop. You have to shift, and you have to balance, and you
have to be able at any time to throw everything out the window and
change the schedule.
Q:
Are you having trouble finding workers?
A:
We do have a big base of returning people. We have
people in the park who have worked there for 20-plus years. One
thing that hasn't changed is the employment base. There's more
competition, so there's no doubt that it's challenging. We've got a
billboard up there (advertising job vacancies). We have to use a
billboard, instead of promoting our services and our business, we're
trying to hire people. As we move forward, you're going to see us
hiring more full-time employees ... at the supervisory level. But
the simple fact of the matter is, if we're going to deliver our
first-class experience and service at these parks, we're going to
need more full-time employees who are committed year-round to make
Six Flags be what it should.
Q:
What do you like most about your Job, and what do
you dislike the most about It?
A:
You're in a business of putting smiles on people's
faces. That can't be all too bad.
What do I not like?
I don't like a job where there are factors I can't control. I like
to be able to control things in a sense, you have a problem or
you're not getting results, and you can flip the switch and bring
your expertise or your experience or your people to the table and
figure out how to turn things around. I can't wave a magic wand and
make the clouds go away. I can't wave a magic wand and make it 89
degrees today.
Q:
You say you're going to make the park (Great Escape)
bigger. Are you talking about buying up more land around here and
maybe putting rides in other places?
A:
I don't have any answers for you just yet. I just
know I like what this park delivers, and I don't believe it ever
really had a lot of that defined, in a sense, of really building up
a variety of entertainment options. Don't get me wrong.
There's been a lot
of money - $30 million - put into this park. So the investment is
there. We're a big taxpayer here; 1,500 people is what we're
employing -1,200 are seasonal and 300 are full-time. But, you know,
I get up this morning to go jogging, and I ran by about 20 kids
coming to work early in the morning. That's good for the community.
That's good for the economy. It's good for business. It's good for
the people that live here. So I think there's opportunity for
expansion.
We actually have a
meeting coming up in a couple of weeks - our first long-range
planning meeting. They've never done a long-range planning meeting
in this company. It's been year to year, and we're going to put
together a five-year plan, which over the next couple of months,
that really has a nice layout for the future of this place.
Q:
Are you going to let us know what this plan is?
A:
Yeah, when the time is right. Once we have something
to announce. It's easy to say we're putting together a planning
strategy. But until we put together something concrete, there's
nothing to tell you. But no, we're not going to hide. I think that
this management team is showing you our desire to open up those
communication lines.
Look, it's not just
the shareholders. It's not just our employees. The press shouldn't
be the last to know. I have nothing to hide. We should be as
transparent as we can possibly be. At the end of the day, if you
believe you have a good relationship with us, we're going to let you
know what's going on as it happens - you're going to write about it.
Last time I checked, that's free publicity.
Q:
Obviously, you've added characters. Is that the
family way you're going or is there something else you're planning?
A:
More family rides. We added a parade every day, as
you know. We added characters. Rides everyone can enjoy.
That's the problem
with roller coasters, and I love roller coasters, but not everybody
goes on them. It's for a certain niche. Even if my son were tall
enough, he won't go near it, and he won't go near it until he's 16
years old. When he gets to 16, he'll love them, and that's the
number one ride he'll want. But we're too skewed. We'll have 60
rides in a certain park, and 50 will be for teenagers or above, and
10 will be for children. And that's not the correct balance to have.
We're going to be
aggressive about putting spinning coasters in our parks in the years
going forward. I love them. It's something everyone can ride. Our
teenagers love the ride; parents love the ride. They can go with
their children, and the kids love the ride. That's the panacea.
You want to get an
entertainment that everyone can enjoy. You're not excluding anybody.
Characters aren't
for the teenagers, yet we're finding more and more of our photo
business is being driven by teenagers. (They want a) shot with Daffy
Duck. So that's just crazy; 'cause I know it works.
When I walked into
the hotel last night, and there's Daffy and Sylvester and Bugs in
the lobby, and I see the line, the kids, to hug them. That's the
strategy working right there.
They (previous
management) didn't know about that strategy in the past.
Again, you
have to build it for people to come.
Q:
When you were talking about the family aspect,
some people complain about the prices In the park - food and that
sort of thing.
A:
What I can tell you? While they might seem outrageous
at times, I went to see "Over The Hedge" last week. I got two
candies, a Coke and a small popcorn, and it was $31. I have a hard
time believing we're so out of whack. We took our prices and went
toe-to-toe with Disney. Every single item we offer, from hot dogs to
pizza to Coke, and we're either right in line or we're within 50
cents of what Disney charges. And the difference is, we give you
more. So when it comes to the competition in the market place, we're
very competitive. I'm very, very sensitive to price gouging. In
Chicago, we were charging $3.79 for a bottle of water, I took it
down to $3. So not everything is being raised.
Things are being
lowered; you just don't hear about it. I don't want any price
gouging. You can't nickel-and-dime people.
You nickel-and-dime
them, you get them once, and that's what they remember, and they
don't come back.
And when you're
talking about a season pass, you know for $50 or so you can come
back as many times as you want all season long. Two visits pays for
the pass. Where else can you go and get a day of entertainment - 10
hours, rides, shows, attractions, photos, characters, autographs,
across the board something for the older ones, something for the
younger ones, all the fun in between - for $20? That's what it is
when you're doing a season pass.
Q:
I need you to go back to what you were talking
about with competing for families' time. I thought It was kind of
Ironic that among the many supporters of Dan Snyder's takeover bid
was (Microsoft founder) Bill Gates. I even heard some talk about
Microsoft having a presence In Six Flags parks in the form of video
gaming options In the future.
Some people were
saying that, in the post-gill world, home entertainment became sort
of a catchall for a lot of families. Do you see Six Flags competing
with that? Do you see any Irony that kids may end up coming to the
park to play the kind of games they have on their Xbox at home?
A:
The answer is yes, I see us competing. I see us
competing with everything. It's your Saturday. You can go to Borders
bookstore. You can read. You can go to a movie theater. You can stay
home and play video games with your kids. You can go on the
slip-and-slide outside. You can go bowling. You can play putt-putt
golf. You can go to a baseball game. I'm not trying to be cute;
these are some of the decisions we make week to week. If I'm not
traveling, I want to have fun with my kids. Right now, at the top of
my list, is going to see the movie, "Cars."
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