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Mica again going after food service Locked

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Posted by John WR on Wednesday, June 19, 2013 6:29 PM

oltmannd
You can rent a private car and invite your friends to come along.  Might cost a bit more than $100 a head, though.

I'll put this on my "Things to do when I win the lottery" list.  Along with your name as a guest.  

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Posted by schlimm on Wednesday, June 19, 2013 7:19 PM

schlimm
Food service (read: dining cars, $15 hamburgers) are an easy target, low-lying fruit for the Micas of the world.  But the way to disarm them is take away the targets.

I'll say it again and expand.  Amtrak's food service seems to be there primarily for the LD trains, which lose a lot of money.  It also loses (not looses) money.  Someone (who apparently never worked for a retail operation like a department store) said you need it as a "loss leader."  But as Sam1 pointed out, you only can afford a loss leader if the rest of your operation makes some money, at least enough to offset it.  If folks here the main attraction to riding LD trains is to eat in a dining car, then I believe LD service really is doomed.
The infamous $15 hamburger (cost to Amtrak to serve it for $8.95) is the sort of nonsense Amtrak does that Letterman and others joke about.  And it is a symbol of what's wrong with Amtrak. Guys like Mica use it to tear Amtrak apart.  So if folks actually want to keep Amtrak, then it needs to change.  Continuing to support a moribund institution like Amtrak, that continues to do things the way they were done 60 years ago (baggage cars?) is a sure-fire way to lose it.

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Posted by jclass on Wednesday, June 19, 2013 10:34 PM

Should Amtrak start charging for luggage people bring on board, too?  Dining cars provide what Amtrak's competition can't.

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Posted by daveklepper on Thursday, June 20, 2013 7:25 AM

Correction:  The NYNH&H did not even cover costs on the dining cars per se.   The dining and lounge cas were under one budget, and the money was recouped by the high prices chaged for drinks in the bar cars on commuter trains.   And the higih prices did not stop people from using thse cars and using them steadly.  They were often jammed, all seats taken and peoplel three deep at  the bar-counter.

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Posted by blue streak 1 on Thursday, June 20, 2013 9:58 AM

oltmannd
 Stop the train?  What for?  Just load the meals on with the passengers.

In a perfect world that would work.  Being in the airline business for 30+ years lots of luck.   Catering locations fall into 2 distinct operatioons.
1.  At smaller locations  as long as you are on time the caters will show up on time sbout 90% of the time.  For every minute the plane is late expect a 1 - 2 % increase of them not showing up at your arrival.  So if your plane is 30 minutes up late then caters showing upon your arrival goes  down to about 60 % of time.  Since a late train would not be affected by another train unless the opposite trains arrive at the same time who knows ?  That would depend on capacity of catering truck.  If caters also serve a small airport ( usually unlikely ) then lack of trucks could be a factor.
2.  Large stations ?  Even with the large amount of trains served at LAX,  CHI ,  WASH, NYP, Bos delays happen though infrequently.  But again late trains get later ( usually ).  Whenever there are disruptins to service delays in catering were completely unpredictible. 
3.  No matter how tight performance contracts were there were always mistakes by the caterers in about 10 - 20 % of the time.  Many times we woulld just have to leave without some missing items.  
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Posted by John WR on Thursday, June 20, 2013 10:10 AM

schlimm
The infamous $15 hamburger (cost to Amtrak to serve it for $8.95) is the sort of nonsense Amtrak does that Letterman and others joke about.  And it is a symbol of what's wrong with Amtrak. Guys like Mica use it to tear Amtrak apart.

Even as I agree with you about this statement I am not sure that Amtrak is lying in shreds over its hamburger expenses, Schlimm.  

David Letterman is an entertainer and his job to to find comedy where ever he can.  But I doubt that entertainers will bring Amtrak down.  

Congressman Mica is caught in a political paradox typical of America.  His constituents like him a lot; there is no danger of his losing his seat as long as he wants to run.  However, active Republicans in his district are a lot closer to Teaparty candidates and would prefer a more conservative candidate.  The primary is where his challenge really lies.  And one way for him to appeal to the conservatives in his district is to attack Amtrak.  The $15 hamburgers have gotten him a lot of national exposure.  (See your comment about David Letterman).  So among the conservatives in his district the Congressman has succeeded and he intends to continue to succeed.  But among Americans as a whole I doubt his attacks are more than an amusing diversion.  

John

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Posted by oltmannd on Thursday, June 20, 2013 10:16 AM

daveklepper
Correction:  The NYNH&H did not even cover costs on the dining cars per se.   The dining and lounge cas were under one budget, and the money was recouped by the high prices chaged for drinks in the bar cars on commuter trains.   And the higih prices did not stop people from using thse cars and using them steadly.  They were often jammed, all seats taken and peoplel three deep at  the bar-counter.

There may be a lesson here....

Sell snacks and soda from on board vending machines and "to go" meals at the stations on the NEC.  Sell high margin stuff at manned stations - drinks, gourmet coffee, smoothies in manned cafe cars.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by oltmannd on Thursday, June 20, 2013 10:23 AM

blue streak 1

oltmannd
 Stop the train?  What for?  Just load the meals on with the passengers.

In a perfect world that would work.  Being in the airline business for 30+ years lots of luck.   Catering locations fall into 2 distinct operatioons.
1.  At smaller locations  as long as you are on time the caters will show up on time sbout 90% of the time.  For every minute the plane is late expect a 1 - 2 % increase of them not showing up at your arrival.  So if your plane is 30 minutes up late then caters showing upon your arrival goes  down to about 60 % of time.  Since a late train would not be affected by another train unless the opposite trains arrive at the same time who knows ?  That would depend on capacity of catering truck.  If caters also serve a small airport ( usually unlikely ) then lack of trucks could be a factor.
2.  Large stations ?  Even with the large amount of trains served at LAX,  CHI ,  WASH, NYP, Bos delays happen though infrequently.  But again late trains get later ( usually ).  Whenever there are disruptins to service delays in catering were completely unpredictible. 
3.  No matter how tight performance contracts were there were always mistakes by the caterers in about 10 - 20 % of the time.  Many times we woulld just have to leave without some missing items.  

It would be a challenge...  I was thinking more along the lines a national contract with very local administration.  Perhaps each train would make it's own arrangements and adjust en route as conditions change.

We're only talking a couple hundred meals per train, per meal.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by oltmannd on Thursday, June 20, 2013 10:24 AM

John WR

oltmannd
You can rent a private car and invite your friends to come along.  Might cost a bit more than $100 a head, though.

I'll put this on my "Things to do when I win the lottery" list.  Along with your name as a guest.  

I'll be there!

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by schlimm on Thursday, June 20, 2013 12:52 PM

John WR

The $15 hamburgers have gotten him a lot of national exposure.  (See your comment about David Letterman).  So among the conservatives in his district the Congressman has succeeded and he intends to continue to succeed.  But among Americans as a whole I doubt his attacks are more than an amusing diversion.  

John

A lot of Americans pay more attention to comedians like Letterman, Leno, Fallon, Conan O'Brien, etc. and pundit comedians like Stewart and Colbert than they do to serious news.  Consequently, when something becomes a joke like the $15 hamburger, it seriously damages Amtrak's image in the eyes of the general public, far beyond Mica's district.   That's the point.

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Posted by John WR on Thursday, June 20, 2013 8:36 PM

schlimm
Consequently, when something becomes a joke like the $15 hamburger, it seriously damages Amtrak's image in the eyes of the general public, far beyond Mica's district.   That's the point.

And I take your point, Schlimm.  I did some web surfing trying to make some assessment of how damaging it was.  What has happened is that it generated some discussion and that discussion has not been good for Amtrak.  A fair amount of discussion was by people who were already predisposed to dislike Amtrak so it didn't change their opinions but it gave them a new chance to explain why Amtrak is unconstitutional.  It kept their issues alive.  So I have to agree you are right.   

I also found some pro Amtrak backlash which could help Amtrak.  But there was not a lot of it.  

Finally, you don't have to look far beyond this forum to know that a lot of people are anti government, especially anti Federal government.  They will link on to any issue they can to spread their anti government message.   But the Federal government has been dealing with this for a very long time and is remarkably robust.  Amtrak seems typical.   So yes, I think the issue is damaging but I also think Amtrak can and will absorb the damage and go on.  

John

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Posted by JL Chicago on Thursday, June 20, 2013 8:55 PM

Actually a good cost accountant takes into account the very things you mention when determining the contribution margin that a unit makes when deciding whether to discontinue the unit.  So in the case of Amtrak food service or sleeper service, a good cost accountant tries to quantify how much revenue direct and indirect gets lost and how much expenses truly get saved.  

So dropping a diner may cause some riders to not take the train at all.   Same is true for the sleeper.  Now these indirect revenue losses are harder to quantify but not impossible to estimate.  It's also important to identify which costs are truly saved.  Allocating overhead to diners or sleepers is bad accounting if you are trying to decide whether to drop a diner or sleeper because you won't actually save the overhead.  It would just get allocated somewhere else.

Amazingly management nonetheless makes these mistakes everyday in all types of businesses from airlines to auto making, and that's why companies fail to shrink to profitability (or less losses).

 

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Posted by schlimm on Thursday, June 20, 2013 11:44 PM

I understand.  But again, my point wasn't so much the impact a PR fiasco like the $15 burger had on politicians or right wingers.  I am referring to the impact it had on the general population which is largely apolitical and outside those living near the NEC, has probably never ridden Amtrak.  This is especially true with the under 30 crowd,  who mostly regard trains as some relic from the past.  So jokes about the burger or for that matter, trains running into each other, offset all the good PR from Amtrak commercials (boring) or the talking GE train.

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Posted by Bonas on Friday, June 21, 2013 11:27 AM

A outside food contractor could be greasing Con. Micas skidsWink

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Posted by John WR on Friday, June 21, 2013 2:07 PM

Bonas
A outside food contractor could be greasing Con. Micas skidsWink

I'm not sure what you mean, Bonas.  It would be beyond inappropriate for Amtrak to even seem to be trying to influence an election, though.  

John

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Posted by gregory hinton on Monday, June 24, 2013 3:11 PM

This what happens when fools who need help to get dressed are elected to Congress.

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Posted by cjn282 on Monday, June 24, 2013 11:04 PM

I think though, Sam, that the amenities offered on LD trains , going back to CN and CP, Via and Amtrak, still makes a difference as to who will buy a ticket. Having ridden a number of long distance trains over the years, I can truly say that my transportation would have been something else had decent food service not been available

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Posted by daveklepper on Tuesday, June 25, 2013 4:47 AM

I agree for most, but not all, of my  long distance travel.   When faced with an overnight run leaving just before dinner time, I probably would have been willing to brown-bag it.  But a day and a night on a train with no good dining car, or anything longer, I probably would have flown despite my real love for rail travel.

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Posted by Anonymous on Tuesday, June 25, 2013 9:27 AM

cjn282

I think though, Sam, that the amenities offered on LD trains , going back to CN and CP, Via and Amtrak, still makes a difference as to who will buy a ticket. Having ridden a number of long distance trains over the years, I can truly say that my transportation would have been something else had decent food service not been available

Mica's concern is with so-called gourmet meals on Amtrak trains that don't command a price sufficient to cover their cost.  Some meal service on long distance trains, or short corridor trains for that matter, should be offered. Does it need to be in sit down, table serviced dinning cars or could it be offered in lounge cars?  And should it be priced to cover the cost or should the taxpayers subsidize the eats?

I just returned from a one week Caribbean cruise.  The cost of my meals was priced into the cruise ticket, although I could have opted for somewhat better eats in one of the specialty restaurants. It would have cost me more.  The cruise lines don't get taxpayer subsidies for their food service.  So tell me again why the taxpayers should subsidize food service on Amtrak. 

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Posted by schlimm on Tuesday, June 25, 2013 9:52 AM

I, too, enjoyed meals on trains.  In my case, they were on the dining (one "N") cars on the Burlington, Sante Fe, Pennsy or NYC of old, .  I also enjoyed a light meal recently on a Bord-Restaurant car on an ICE (HSR intercity express) on German Rail.  In all cases, the meals were not subsidized by taxpayers, American or German.  It is possible to have decent food on trains, whether prepared on board or brought aboard at stops, as Don Oltmann has suggested.  Since Amtrak hasn't been able to figure that out in its 40+ year history, perhaps it is time to outsource?

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Posted by Paul Milenkovic on Tuesday, June 25, 2013 10:33 AM

schlimm

I, too, enjoyed meals on trains.  In my case, they were on the dining (one "N") cars on the Burlington, Sante Fe, Pennsy or NYC of old, .

Asking about "N" train cars?  Try the Model Railroader section of the Forum . . .

If GM "killed the electric car", what am I doing standing next to an EV-1, a half a block from the WSOR tracks?

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Posted by schlimm on Tuesday, June 25, 2013 4:12 PM

Paul Milenkovic

schlimm

I, too, enjoyed meals on trains.  In my case, they were on the dining (one "N") cars on the Burlington, Sante Fe, Pennsy or NYC of old, .

Asking about "N" train cars?  Try the Model Railroader section of the Forum . . .

No, Paul.  Correcting a frequent spelling error on the forums (fori) along with  "loose" = not tight fitting, vs. "lose" = suffer defeat or misplace, as in "did Paul lose his model diner?"

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Posted by John WR on Tuesday, June 25, 2013 5:41 PM

Sam1
The cruise lines don't get taxpayer subsidies for their food service.  So tell me again why the taxpayers should subsidize food service on Amtrak. 

Since you ask, Sam, here is the reasoning behind it as I understand that reasoning.  

Back in 1970 the American Public and Congress arrived at an agreement.  Congress would allow the private railroads to abandon their passenger service.  In return Congress would fund a national rail passenger system.  That rail passenger system is not nearly as big as the one the public had to give up and Congress's support of it has been grudging at best.  However, Congress has never refused to fund it.  

Ever since 1970 many individuals have questioned our rail passenger system.   Some find it too expensive and want it eliminated.  Some find it inadequate and want it expanded.  And some feel it is unsuited to the needs of today's traveling public and it should be modified.  However, there has never been a new consensus that we should either eliminate it or modify it.   Thus it carries on at it was originally structured.   

It is not completely static.  Amtrak has made some changes over its history.  But it still is pretty much the same as it was in the beginning.   Improvements in service have generally been funded by the states with the exception of the Northeast Corridor where the Federal Government has funded them.   

If Amtrak were to withdraw long distance trains as being unsuited to today's needs I cannot see any reason for Congress to do substitute anything in their place.   But never say never.  I really do not know what the future will bring.  

John

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Posted by oltmannd on Wednesday, June 26, 2013 12:49 PM

John WR

Sam1
The cruise lines don't get taxpayer subsidies for their food service.  So tell me again why the taxpayers should subsidize food service on Amtrak. 

Since you ask, Sam, here is the reasoning behind it as I understand that reasoning.  

Back in 1970 the American Public and Congress arrived at an agreement.  Congress would allow the private railroads to abandon their passenger service.  In return Congress would fund a national rail passenger system.  That rail passenger system is not nearly as big as the one the public had to give up and Congress's support of it has been grudging at best.  However, Congress has never refused to fund it.  

Ever since 1970 many individuals have questioned our rail passenger system.   Some find it too expensive and want it eliminated.  Some find it inadequate and want it expanded.  And some feel it is unsuited to the needs of today's traveling public and it should be modified.  However, there has never been a new consensus that we should either eliminate it or modify it.   Thus it carries on at it was originally structured.   

It is not completely static.  Amtrak has made some changes over its history.  But it still is pretty much the same as it was in the beginning.   Improvements in service have generally been funded by the states with the exception of the Northeast Corridor where the Federal Government has funded them.   

If Amtrak were to withdraw long distance trains as being unsuited to today's needs I cannot see any reason for Congress to do substitute anything in their place.   But never say never.  I really do not know what the future will bring.  

John

The thing I can't swallow is that Amtrak appears to view themselves as some sort of innocent bystander in the whole process.

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Posted by blue streak 1 on Thursday, June 27, 2013 4:18 AM

INMO There has not been a proper accounting of the food service draw..  Maybe Amtrak needs to break out on each train its food revenue.

1. When a sleeping car passenger uses the dining car then that cost should be fully accounted for by making it a food revenue from the sleeping car accomodaation charge. May be as well some transfer of the fare ( either one may already be done )  .

2. Each time a coach passenger uses the dinning car then there would be a flat subtraction from the fare paid to food revenue.

3.  A lounge car / cafe, etc use could be transferred in the same way. 

For example only:  a coach pass uses dinning car then $7.00 of fares collected transferred to food service.  Purchase of several items from lounge maybe $4.00, Drinks $1.00  These figures are not meant to be actual numbers..

 

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Posted by John WR on Thursday, June 27, 2013 10:14 AM

oltmannd
The thing I can't swallow is that Amtrak appears to view themselves as some sort of innocent bystander in the whole process.

I'm not sure of what you mean here by "Amtrak," Don.  

First of all, there is Joe Boardman.  In his testimony to the Congress he certainly presents a strong argument for long distance trains.  We all know his arguments or at least those of us who bother to read his testimony know them.  

Also, when you get below the board of directors, every single Amtrak employee, both labor and management, is represented by a labor organization.  These organizations all lobby the Congress.  We generally don't know what they say but they all publish newsletters for their members which would show their positions.  But I think it is safe to believe that they do not argue against Amtrak as it now exists and they oppose any diminution of Amtrak.  

However, none of these entitles make the law.  They simply administer the law that Congress has made.  They can do only what the law authorized and they cannot do anything not authorized in law.  

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Posted by schlimm on Thursday, June 27, 2013 11:13 AM

I believe the essence of what some of us are saying about dining cars on LD trains is basically as follows.

1. LD trains should be pruned to keep the ones that actually serve the most LD passengers, i.e. folks riding most of the length of the route.  For others, divide into segments served by day trains, i.e., no sleepers.

2. Where food service is needed, outsource it to food service specialists and have patrons pay the true costs of their meals.  

3. Various delivery modes can be used: aisle service, lounge snack/bistro cars, actual dining cars.  "Gourmet" meals are not primarily why a person rides a train and taxpayers or Acela surpluses should not be subsidizing their continuance or that of sleeping cars.  Boardman said that quite clearly to the Midwest HSR group..

One simple question, which the dining car enthusiasts duck is this:  Why should taxpayers subsidize your meal on a train?

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Posted by John WR on Thursday, June 27, 2013 12:49 PM

schlimm
I believe the essence of what some of us are saying about dining cars on LD trains is basically as follows.

I agree with your three points, Schlimm.   The only point I would make is that beyond this website I don't know of anyone who is calling for similar changes to Amtrak.  Do you know of anyone who is?

My own assessment of where the country is when it comes to Amtrak is that most people are just not engaged in the issue.  Of those who are some are pro Amtrak and some are anti Amtrak.  However, neither the pros nor the antis are big enough to make much of a difference.  

As far as the cost of food service is concerned, Joe Boardman has pointed out that is about 2 per cent of Amtrak's budget.  I suspect those people who are engaged in Amtrak look at broader issues.  

John

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Posted by schlimm on Thursday, June 27, 2013 1:22 PM

If you agree with all three points, then you should understand that addressing #1 takes care of most of the LD problems, which contribute a huge percentage of the operating loss.  But even handling the "low hanging fruit" of the absurd 2% food service improves its image.

As far as opinion goes, much of the general public has no awareness of Amtrak. That is why, in henry6's words, a real "passenger service" is needed in identified corridors.  That means frequent service throughout the day, such that people start to consider the train as a viable option for transportation distances under 500 miles.

As far as Congress goes, Amtrak should be able to get more cooperation if they don't have to come to the House each year begging for money to cover operating losses.  Maybe then they can even get the funding through bond issues for infrastructure.

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Posted by John WR on Thursday, June 27, 2013 4:12 PM

I think, Schlimm, there is a large overlap in your opinion and mine about Amtrak.   

But I don't want to loose Amtrak.  I see sleeping cars, dining cars and similar things as the price we must pay to keep it.  And I am willing to pay that price.   

But you see the costs of such luxuries as weakening Amtrak.  You would eliminate them to have a stronger Amtrak.  

So I think we can only agree to disagree on that particular issue.   But the essence of your vision, that Amtrak should be about providing the best passenger service to move the most people we can for the money we spend is something I very much agree with.   

John

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