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Amtrak to end food service losses

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Posted by schlimm on Sunday, December 1, 2013 8:00 AM

How about approaching the food service from a different angle?  

1. Ask the question, "What chain restauraant offers an acceptable selection of food items that can be adapted to the commissary/reheat routine?"  Or as Oltmann and possibly others suggested, why not simply have that chain operate the food service.

2. Look at that restaurant's menu and see what they charge for common items, such as a hamburger/cheeseburger (optional, with fries plus beverage).  Compare that with the current Amtrak price.  

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Posted by schlimm on Sunday, December 1, 2013 8:26 AM

For example, you can get a mushroom Swiss burger (includes fries) at Chili's for $8.99 + 1.00-2.15 for most beverages.  So for around $13.00, including tip, no tax, you can get a meal that is not fast food.  It is popular and pretty tasty for most folks.    On the Capital Ltd, the Angus burger with cheese (potato chips, no fries) and water or soft drink is $12.75, tip included.  So the price charged patrons is the same, but the operation loses ~$70 million annually.  Why?   Because it is in a railroad car?   It pays no property taxes, directly or in rent.   It pays minimal utilities.  Food and alcohol licenses?  It has a very limited menu.  Even though the staff is pretty small, the labor charges must be the variable, IMO  

Though from 2006, . the Amtrak Working Group report, and it said that "Amtrak food service employees are paid 3.5 times the amount paid to the equivalent U.S. restaurant employee…[being] compensated more than $54,000 annually, while comparably skilled food service workers are compensated $14,450 to $15,835.”"

While i believe the pay scale of US food service workers cited is abominably low, paying $54 K seven years ago, more today,  sounds terribly high.

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Posted by CJtrainguy on Sunday, December 1, 2013 3:24 PM

Phoebe Vet

The system generated a negative of $350K/annual in the old system. The new vending machine revenue averages $2700 gross, $700 net per month. I must assume that is per vending machine. So how many vending machines are there?

If the $2700 gross take per month is for all the vending machines on the train, that would seem to suggest that maybe riders are finding food elsewhere, because that's doesn't appear to be a very high number. In that case, vending machines would seem to be a lousy food solution.

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Posted by schlimm on Sunday, December 1, 2013 3:51 PM

CJtrainguy

Phoebe Vet

The system generated a negative of $350K/annual in the old system. The new vending machine revenue averages $2700 gross, $700 net per month. I must assume that is per vending machine. So how many vending machines are there?

If the $2700 gross take per month is for all the vending machines on the train, that would seem to suggest that maybe riders are finding food elsewhere, because that's doesn't appear to be a very high number. In that case, vending machines would seem to be a lousy food solution.

If NCDOT food service went from losing $350K per year to a small profit, how do you figure that "a lousy food solution?"

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Posted by daveklepper on Sunday, December 1, 2013 3:55 PM

YOu are discussing basicaly a corridor service, not LD

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Posted by schlimm on Sunday, December 1, 2013 6:07 PM

Those of you who seem to want to maintain the status quo vis a vis food service can say all you want, but it is a federal law that requires Amtrak to eliminate its losses from food service soon.  Given the fact that most of that loss is from diners on LD services, clearly continuing operations as they are is not a possibility.  Change will happen.

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Posted by daveklepper on Sunday, December 1, 2013 9:14 PM

I think I have gone on record as agreeing with Fred Frailey that the most promising way to eliminate or sharply reduce food losses is by applying the Acela food concept to LD trains.   This is not maintaining the status quo.   And indeed, vending machines may be appropriae for some trains, specifically one-night overnighters, more appropirate possibly for the Cardinal and the Lake Shore than the CZ or SWC. 

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Posted by CJtrainguy on Sunday, December 1, 2013 9:34 PM

schlimm

CJtrainguy

The system generated a negative of $350K/annual in the old system. The new vending machine revenue averages $2700 gross, $700 net per month. I must assume that is per vending machine. So how many vending machines are there?

If the $2700 gross take per month is for all the vending machines on the train, that would seem to suggest that maybe riders are finding food elsewhere, because that's doesn't appear to be a very high number. In that case, vending machines would seem to be a lousy food solution.

If NCDOT food service went from losing $350K per year to a small profit, how do you figure that "a lousy food solution?"

Schlimm, please chill. I was pointing out that there was not enough information given originally for one to correctly compare the old status with the new status, because nothing was said about the size of the operation at either stage. So I simply can't tell if $2700 gross with a $700 profit per month is the entire operation or just one vending machine. Seems to me that would make a little tiny bit of difference.

If the entire volume now is $2700/month, doesn't it seem odd that in the old scheme the loss was $29+K/month ($350K/12). We simply don't have enough info to draw any real conclusions.

I said the new plan with vending machines might be a lousy solution because it at first glance doesn't appear they are selling anything much. Maybe they should be removed entirely and the space used for revenue generating seats.

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Posted by CJtrainguy on Sunday, December 1, 2013 9:41 PM

daveklepper

I think I have gone on record as agreeing with Fred Frailey that the most promising way to eliminate or sharply reduce food losses is by applying the Acela food concept to LD trains.   This is not maintaining the status quo.   And indeed, vending machines may be appropriae for some trains, specifically one-night overnighters, more appropirate possibly for the Cardinal and the Lake Shore than the CZ or SWC. 

Vending machines are used on regional/short-LD trains in Europe and from what I hear with a so-so result. Yes, you can get something to drink/food (IF the machine works, which is often a problem on trains - something about the moving and shaking), but it's the bare minimum concept. 

I agree that the Acela food concept should be extended to LD trains and I think it could work quite well there.

I am truly not asking for the "good, old days" when everything was made from scratch on board. 

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