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Don't Touch My Free Soda!
Two of the longest-running, family owned amusement parks in the country announced today that they will be bought by a European hedge fund.
Madrid-based Parques Reunidos, which owns 65 amusement, animal, and water parks in the U.S. and Europe, announced that it intends in March to complete its purchase of Kennywood Entertainment in Pittsburgh, PA, which operates 129-year-old Kennywood Park in Pittsburgh; and 161-year-old Lake Compounce in Bristol, CT.
Although the current owners insist that the sale shouldn’t spur cutbacks or corporate changes, long-time customers worry that the move doesn’t serve customers’ best interests. Companies like the British private equity firm Candover, which operates Parques Reunidos, are notorious for buying up investments, cutting the costs that may affect customers, and then selling at a higher profit.
Customers spoke out today about those potential cost-cutting moves. At Lakecompounce’s fan forum, http://www.lakecompounce.org/forum/viewtopic.php?t=2336, BoulderDashFan, of Western Connecticut, said, “First thing that my wife said when we heard this was 'there goes the free Pepsi.’”
On the message board of the Hartford Courant more leery customers spoke out. “Both these parks have been traditional family-owned bright spots in an increasingly homogenized world. Let’s hope the new (again) owners appreciate what is unique here and go with it. In my heart, I'm afraid that ain't gonna happen,” said Dan of Waterbury, CT.
“What made Lake Compounce different was the fact that it was small and independent and didn't have to answer to shareholders (or fund managers). I can't see how they can remain the same when they're just one park of dozens instead of one in five like they were with Kennywood,” added Jeremy of Minneapolis, MN, on the Hartford Courant.
Jeremy is right—the Kennywoods and the Lake Compounces of the world are dissipating and serve as an example of how commerce is evolving. The parks’ family atmosphere and charm added that unique differentiator and are what drew repeat crowds year after year. Gerry Brick, general manager at Lake Compounce, said the average visitor to the park visited three times last summer. How much of that loyalty stems from the appeal and lure of the park’s unique offerings?
But we’ve become acclimated to standardized, mass-produced retail experiences. Like Thomas Friedman warned in the World is Flat, convergence and globalization have leveled the competitive playing field, and in response businesses must stay ahead of the trends to remain competitive.
But every coin has two sides and every challenge creates an opportunity. New management might jump the hurdles often encountered by family run operations and begin the process of implementing formal customer strategies, loyalty programs, and technology infrastructures.
Yes, change is inevitable, but most importantly, as in every acquisition, Parques Reunidos must listen to its new customers to ensure the company doesn't alienate its visitors.
Then maybe, just maybe, the free soda will stay.
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