Amtrak Food Service Lost $834 Million in 10 Years

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QUOTE FROM USA TODAY: ".......Possible solutions include using café cars instead of dining cars on long-distance routes, replacing the food and beverage service with vending machines or food service carts, and contracting out the service to the lowest bidder..........."



We know what happened on the Sunset when they put in the vending machines.
Just curious - what did happen when they put in the vending machines? After all, it's pretty wasteful to have a person serving what a vending machine can mostly serve (chips, drinks, etc.) And vending machines for things like pizza or burgers exist too. In addition, doesn't the Piedmont have vending machines?

PS This is only as a replacement for the AmCafe - the diner would stay as is.
 
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Waste and fraud, as in stealing, it would seem to be something having a relationship to the quality of commissaries and their employees. Items are easier to disappear if the distance between the commissary's refrigerator and the train is a long one. I remember someone commenting on Sunnyside's (NY) food storage is no longer in the yard itself but rather several blocks away?!! If this is true, I can see how easy stealing can be.

In any case however, a simple audit before food is loaded onto transport carts and after it is loaded onto the train, if not done already, should catch where the leak is.
 
The big questions in the above are, to my mind:

1) What's the breakdown on the OBS losses? i.e. How much of that is coming off of the Acelas vs. the Regionals vs. the LD trains?

Tha Amtrak Inspector General stated over 80% of the F&B losses were on the LD trains. If anyone followed up on that statement, I missed it.
 
I've been reading a book about Fred Harvey. When he won the bid to run dining cars that were being added to save time at stops the railroad had to subsidize him for every meal. If Amtrak stopped at 7, noon and 6 so we could walk into a trackside restaurant think about how much time would be lost and time = money. My point is that food service and travel don't work that well together outside of cruise ships and I think alcohol sales may be the subsidy there.
 
Link to the session with video and written testimony

The breakdown between various route types is given in the OIG's testimony, page 9. The NEC had 31.8 million in revenue and 40.9 million in direct costs and its 9 million dollar loss was 11% of the total. State supported corridors collected 31.7 million in revenue (including state support for 21 of the routes) against 33.3 million in costs and the 1.6 million dollar loss was 2% of the total. The long distance trains had 57.9 million in revenue against 131.9 million in costs and their 73.9 million loss was 87% of the total Amtrak F&B loss. The Palmetto had the lowest F&B loss of any long-distance route.

The Downeaster reports a cost recovery rate of 75%.
 
I would be willing to pay for food if they lower there prices I always go on sleeper, so I get it for free, but if it saved that much for Amtrak I would definitely buy food.
 
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Those who want to pick on Amtrak will always find a reason to do so. At least they are focused on food & not the LD routes (for now).

Reminds me of the post on here about a bunch of Tea Party-ers complaining about Amtrak losing money while they proceeded to keep silverware & other items as souvenirs from the train they were on. But it's OK to fight a few wars b/c those trillions are worth it.
 
My point is that food service and travel don't work that well together outside of cruise ships and I think alcohol sales may be the subsidy there.
This may be true, even if a little. At present, Amtrak has no food cars set up with all the accouterments and wares of a full bar: no blenders, shaker and strainer apparatus, and most of all, no room to fit every possible premium liquor that people like in their margarita, sangria, cosmopolitans, etc. Therefore, we can perhaps do without all the hardware i listed above and maybe use pre-mixed cocktails, and then charge them for it with a markup. While we can get away with asking $4 - 5 bottle of beer, which is only slightly more than a the bars I go to but much more than the news stand, if Amtrak got creative and started using premium tequilas like Patron' in some of their drinks, maybe we can get the alcohol sales to work harder. Or: since we are such a major carrier that serves beverages in trains of all categories, why not approach the makers of these liquors to ask for a custom size or mixture that allows for more choices of more desireable items, thereby commanding a higher price? If Amtrak made and sold mixed cocktails and other drinks and charged higher for it, and dress up the Amfleet cafe tables and lighting a little, they very well could have alcohol subsidize the food by selling not just a drink, but a NIGHT OUT while traveling!! It's a similar concept to the Coast Starlight's Pacific Parlor lounge which is also the norm d reguer on Auto Train and Empire Builder.

And not to ignite any wars, but i wish to heck they would dump Pepsi and go back to Coke!
 
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My point is that food service and travel don't work that well together outside of cruise ships and I think alcohol sales may be the subsidy there.
And not to ignite any wars, but i wish to heck they would dump Pepsi and go back to Coke!
You and me both! And not just because I live in Atlanta. Amtrak must have a XX year contract with Pepsi.
 
My point is that food service and travel don't work that well together outside of cruise ships and I think alcohol sales may be the subsidy there.
Therefore, we can perhaps do without all the hardware i listed above and maybe use pre-mixed cocktails, and then charge them for it with a markup. While we can get away with asking $4 - 5 bottle of beer, which is only slightly more than a the bars I go to but much more than the news stand, if Amtrak got creative and started using premium tequilas like Patron' in some of their drinks, maybe we can get the alcohol sales to work harder. Or: since we are such a major carrier that serves beverages in trains of all categories, why not approach the makers of these liquors to ask for a custom size or mixture that allows for more choices of more desireable items, thereby commanding a higher price? If Amtrak made and sold mixed cocktails and other drinks and charged higher for it, and dress up the Amfleet cafe tables and lighting a little, they very well could have alcohol subsidize the food by selling not just a drink, but a NIGHT OUT while traveling!!
I agree, to an extent-At between $5 and $7 per can of beer as I recall, that is a bit higher than I am usually willing to pay for multiple drinks. Cut the price 20%, and I'll up my intake 80%! Would really like to have more of a lounge atmosphere-The current crop of cafe's are more like the concession stand at a high school football game. Reasonable prices (for what you get-Don't get me wrong, I would pay $7 for a 22 oz draft craft beer. But I'm not paying $60 for a 12 pack of Budweiser!) and a better social atmosphere would be great! Bring back the bar from Silver Streak. Real cocktails, a real bar to sit at along with the tables, and I think alcohol revenue would go up.

Of course, the high prices might ALSO be there intentionally. I've been on trains a long time ago, back when you could smoke in the lounge, and a lot of coach passengers would camp out drinking and smoking until stumbling......so, I guess it's a tradeoff. I can afford to drink at $6/beer now, but I can imagine a lof of folks can't.
 
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3) What costs are being allocated to food service? No, really...how much overhead is being offloaded here by Mica et al to make things look bad? Yes, I know that some of that overhead is justified...but in this particular instance, anything outside of direct costs for running the food service is just being "fudged" onto it.
There it is..........it's that bloated overhead again.
 
Just raise the price to close the gap. When I took my first train trip, we were too poor to eat anything the rail line provided. We survived on a 2000 mile trip with hiker food we brought on board. Now if that reduces ridership, well, my experience this year is that Amtrak is incapable of adequately servicing the riders who now book. Many private businesses downsize to what they can handle. Could be Amtrak will have to be a regional service only till petroleum gets up to $200 a barrel or so. We train lovers might be bummed by that, but it seems clear to me that the economics right now doom MOST Amtrak service to being marginal and mediocre. A lot of travel industry factors go into that, but the bottom line comes out clear enough.
 
The price of food in the AmCafe is already ridiculous, and there are not enough paying customers in the diner for a reasonable raise to have much of an effect.
 
QUOTE FROM USA TODAY: ".......Possible solutions include using café cars instead of dining cars on long-distance routes, replacing the food and beverage service with vending machines or food service carts, and contracting out the service to the lowest bidder..........."



We know what happened on the Sunset when they put in the vending machines.
Just curious - what did happen when they put in the vending machines? After all, it's pretty wasteful to have a person serving what a vending machine can mostly serve (chips, drinks, etc.) And vending machines for things like pizza or burgers exist too. In addition, doesn't the Piedmont have vending machines?

PS This is only as a replacement for the AmCafe - the diner would stay as is.
Yes, the Peidmont has vending machines which work wonderfully. The Piedmont trains have old combine cars which are used as checked baggage / lounge cars. In the center of the car is the vending area with snack and drink machines, coffee machines, and a refrigerator with mini bottles of water. The few times I've ridden the machines were all well stocked and in working order. It would make absolutely no sense to pay a lounge car attendant on this route. There is no reason that other day trips couldn't adapt to this as well.
 
QUOTE FROM USA TODAY: ".......Possible solutions include using café cars instead of dining cars on long-distance routes, replacing the food and beverage service with vending machines or food service carts, and contracting out the service to the lowest bidder..........."



We know what happened on the Sunset when they put in the vending machines.
Just curious - what did happen when they put in the vending machines? After all, it's pretty wasteful to have a person serving what a vending machine can mostly serve (chips, drinks, etc.) And vending machines for things like pizza or burgers exist too. In addition, doesn't the Piedmont have vending machines?

PS This is only as a replacement for the AmCafe - the diner would stay as is.
Yes, the Peidmont has vending machines which work wonderfully. The Piedmont trains have old combine cars which are used as checked baggage / lounge cars. In the center of the car is the vending area with snack and drink machines, coffee machines, and a refrigerator with mini bottles of water. The few times I've ridden the machines were all well stocked and in working order. It would make absolutely no sense to pay a lounge car attendant on this route. There is no reason that other day trips couldn't adapt to this as well.
Well you can't have a vending machine mix up a Bloody Mary for you, and I assume that you cannot acquire alcohol at all because there is no way to card, so the Pacific Surfliner would lose a lot of its lounge revenue mid-July - Labor Day IYKWIM.
 
The price of food in the AmCafe is already ridiculous, and there are not enough paying customers in the diner for a reasonable raise to have much of an effect.
Must vary from one route to another. EVERY time I took a train trip, they had to call diners in shifts because they could never fit more than about 20 percent in the car at one time. But isn't it obvious that no matter what you think of present prices, they are too low? How do you lose money if you price to offset costs?
 
One way to fit more people in the diner is to add a extra cook and server but we know amtrak can't do that thanks to congress and rep mica. Those 2 are the reason the dining car is the way it is but they are too stupid to see that then they whine cause amtrak looses money on food. But one thing they can do is crack down on lazy LSA who turn people away cause they rather text their BF or GF while on the job.
 
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The purpose of this hearing was not to force Amtrak into profitable food and beverage operation. It was to determine the steps Amtrak has taken to implement recommendations made last year by the Amtrak office of the Inspector General (AOIG) to reduce waste and fraud in the food and beverage operation, and also to assess the impact of Amtrak food and beverage costs on state-supported services.

A report issued last year by the AOIG identified widespread theft and fraud in Amtrak food and beverage service involving 307 LSA's over eight years. A conservative estimate of the cost of the theft and fraud to Amtrak is between $4 and $7 million per year. The AOIG made a series of recommendations to Amtrak to reduce the problem. The hearing was to assess the steps taken by Amtrak in response to the AOIG's report.

A second issue covered was the cost of food and beverage service being passed to states for state-supported trains. Of particular interest was the experience of the state of Maine and the Downeaster. Maine does not use Amtrak food and beverage service for the Downeaster. They independently contract the on-board food and beverage operation. There was considerable interest in the economic comparison between Maine's use of a private food and beverage contractor verses the cost to other states for use of Amtrak-supplied food and beverage service.

As long as Amtrak depends on federal funding in order to operate their trains, Congress, which provides those funds, has every right to question how the money is being spent. When an independent investigator like the AOIG finds waste and fraud, Congress has an obligation to follow-up and review Amtrak's response. By all accounts, Amtrak did just fine at this hearing, and the AOIG expressed general satisfaction with Amtrak's response to last year's report.
While these purposes are admirable (and I support both efforts), I suspect that the real reason for the hearing was to give Mica a beat-up-on-Amtrak day. Otherwise, the total amount of the losses would not have been particularly at issue except as they related to the fraud problem. Yet the headline had diddly squat to do with either of the issues you mention, instead focusing on a very big number. The theft/fraud total could have been played up as "Congress investigates fraud approaching $100 million over ten years at Amtrak" or somesuch number (inflated though it might be), but there seems to have been at least a decidedly different gist to things.

By the way, it has occurred to me that part of the problem with at least some LD trains might be the presence of two FSCs (the diner and the cafe) instead of one. Now, I support having a diner on these trains, but I cannot help but wonder if the presence of two FSCs on an LD train where a corridor train with a similar number of people on board isn't at least part of the problem.
 
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"Amtrak Food Service Lost $xxx Million"? I would like know how much highways lost in the same period?

[slaps hand on head] That's right - we taxpayers do not subsidize highways at all!
rolleyes.gif
It's free!
laugh.gif
I once saw that Interstate highways get over $400,000,000,000 of money from the government. Forgot the source. Now just wait for the numbers when you add up U.S., state, and county highways, and other roads.....

I really dread the AmChow- by the second day I'd rather be eating pretzels in my room. And on a recent CZ trip the dining car was so dysfunctional it took almost 2 hours to get dinner and get out, with only half the tables full. And the LSA was griping over the PA that he wanted more sleeper passengers to come in. The last day I ate my own snacks and used the lounge car. I'm sure that the process could be streamlined a little bit but I don't want to have to eat Subway chain turkey products either.
I don't see what the problem is with Amtrak food. Much better than McDonalds. What do you not like about the food?
Surely you jest?

I know some people put the hammer down on the convection oven items, but even airlines serve convection oven items in business/first that far outdo anything on Amtrak. I love travel by rail. I support Amtrak (but not necessarily some of their policies), but I'm not going to rave about their cuisine...sorry.
 
Well you can't have a vending machine mix up a Bloody Mary for you, and I assume that you cannot acquire alcohol at all because there is no way to card, so the Pacific Surfliner would lose a lot of its lounge revenue mid-July - Labor Day IYKWIM.
You assume wrong. In CT the lottery vending machines have a scanner on them. You must scan your drivers license before you buy a lottery ticket. Unknown if this can be used for a 50 state thing, but the equipment is out there.

I do find fraud numbers a bit Intresting. Are they before or after the intro of the printed receipt. Now you get a receipt so selling your own goods in the lounge should be a non-issue. Just have a report printed each hour or day and have it turn in. That will stop any personal stock sold in the lounge. (the report say you sold $100 dollars of stuff, where the money,)
 
By the way, it has occurred to me that part of the problem with at least some LD trains might be the presence of two FSCs (the diner and the cafe) instead of one. Now, I support having a diner on these trains, but I cannot help but wonder if the presence of two FSCs on an LD train where a corridor train with a similar number of people on board isn't at least part of the problem.
You can see the validity of that observation even in apples to apples comparison between what is characterized as LD service by Amtrak. Palmetto generally performs better financially than almost any other run of the mill Amtrak LD train.

What I cannot understand is why there is a tendency to lean towards a position that in effect says "better to have no train service than to have overnight trains with no sleeper and diner service". Yes it is nice to have sleeper and diner service, but should one necessarily choose no service if one could possibly run a coach, baggage and cafe only train to connect secondary locations overnight? Afterall 66/67 still does a bangup business without sleepers. Is one to believe that there is nowhere else in the US that an overnight train providing basic transportation won't work? And yet the whole concept is avoided like the plague, which I don't understand.
 
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The price of food in the AmCafe is already ridiculous, and there are not enough paying customers in the diner for a reasonable raise to have much of an effect.
Must vary from one route to another. EVERY time I took a train trip, they had to call diners in shifts because they could never fit more than about 20 percent in the car at one time.
That's because most of them are sleeper passengers, who don't specifically pay for their food, and thus would not be affected by a price increase.

But isn't it obvious that no matter what you think of present prices, they are too low? How do you lose money if you price to offset costs?
There's a point where the prices are too high to be practical. For instance, $2 for a can of soda is very high, but any more would drive almost everyone away - so revenues would go DOWN instead of up.
 
The price of food in the AmCafe is already ridiculous, and there are not enough paying customers in the diner for a reasonable raise to have much of an effect.
Must vary from one route to another. EVERY time I took a train trip, they had to call diners in shifts because they could never fit more than about 20 percent in the car at one time.
That's because most of them are sleeper passengers, who don't specifically pay for their food, and thus would not be affected by a price increase.
Sleeper passengers do pay for their meals. They're priced into the ticket price and a portion of that ticket revenue is allocated to the dining costs.
 
The price of food in the AmCafe is already ridiculous, and there are not enough paying customers in the diner for a reasonable raise to have much of an effect.
Must vary from one route to another. EVERY time I took a train trip, they had to call diners in shifts because they could never fit more than about 20 percent in the car at one time.
That's because most of them are sleeper passengers, who don't specifically pay for their food, and thus would not be affected by a price increase.
Sleeper passengers do pay for their meals. They're priced into the ticket price and a portion of that ticket revenue is allocated to the dining costs.
So, if for instance the dining car raises its prices, the sleeping car ticket prices will rise as well?
 
Sleeper passengers do pay for their meals. They're priced into the ticket price and a portion of that ticket revenue is allocated to the dining costs.
So, if for instance the dining car raises its prices, the sleeping car ticket prices will rise as well?
Heck, Sleeping Car prices rise even when the Dining Car does not make any changes. So any Dining Car related price rise will probably be lost in the noise anyway.
 
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