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Amtrak Records $834 Million Loss on Food Sales Over Past Decade
Scribe Heritage Investigates ^ | August 6, 2012 | Michael Sandoval

Posted on 08/06/2012 9:42:55 AM PDT by To-Whose-Benefit?

Amtrak spent $1.70 for every dollar it earned on food and beverage sales last year, leading to a loss of $84.5 million on the service, according to information provided to the House Transportation and Infrastructure Committee this week.

Committee Chairman John Mica (R-FL) blasted the “inefficient and wasteful” record of the nation’s rail line, pointing out the substantial cost to taxpayers occurring with each transaction.

“Over the last 10 years, these losses have amounted to a staggering $833.8 million,” said Mica. “It costs passengers $9.50 to buy a cheeseburger on Amtrak, but the cost to taxpayers is $16.15. Riders pay $2 for a Pepsi, but each of these sodas costs the U.S. Treasury $3.40.”

Mica estimated the per-employee loss on Amtrak’s food and beverage service—approximately $85 million—at a whopping $68,476. Amtrak employs 1,234 in its concessions service. The division collected $121.4 million in revenue but recorded a loss of $206 million.

(Excerpt) Read more at blog.heritage.org ...


TOPICS: Society
KEYWORDS: waste
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Thank You DC for yet another expensive B**ls Up.
1 posted on 08/06/2012 9:43:02 AM PDT by To-Whose-Benefit?
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To: To-Whose-Benefit?

FUBARSquared


2 posted on 08/06/2012 9:45:19 AM PDT by bjc (Check the data!!)
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To: To-Whose-Benefit?

So the night manager of every fast food joint on the road can do something the Federal Government cannot, sell you a burger and fries profitably.


3 posted on 08/06/2012 9:45:25 AM PDT by Buckeye McFrog
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To: To-Whose-Benefit?

$16.15 for a stupid CHEESEBURGER? And who on earth besides the government pays $3.40 for a can of soda?


4 posted on 08/06/2012 9:45:29 AM PDT by Blood of Tyrants (Never believe anything in politics until it has been officially denied.)
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To: To-Whose-Benefit?
Amtrak spent $1.70 for every dollar it earned on food and beverage sales last year,..

One thing is for sure, this food company isn't owned by Bain Capital.

5 posted on 08/06/2012 9:48:12 AM PDT by EGPWS (Trust in God, question everyone else)
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To: To-Whose-Benefit?

Takes real talent to lose money selling food on a train.


6 posted on 08/06/2012 9:49:08 AM PDT by Tijeras_Slim
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To: Blood of Tyrants
$16.15 for a stupid CHEESEBURGER? And who on earth besides the government pays $3.40 for a can of soda?

Any company forced to pay government wages and benefits....

7 posted on 08/06/2012 9:50:04 AM PDT by EGPWS (Trust in God, question everyone else)
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To: To-Whose-Benefit?

Guberment run, all I need to know..... =.=


8 posted on 08/06/2012 9:52:25 AM PDT by cranked
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To: To-Whose-Benefit?

Yet another of the thousands of indicators of the accountability of the Federal government.

ZERO.


9 posted on 08/06/2012 9:52:50 AM PDT by EagleUSA
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To: To-Whose-Benefit?

I’ll sell them 20 oz. Pepsi for $1.25

They could actually make .75 each.

Who in their right mind pays $3.40 for a can/bottle of soda?

Oh, that’s right, the government. never mind.


10 posted on 08/06/2012 9:57:37 AM PDT by SolidRedState (I used to think bizarro world was a fiction.)
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To: Tijeras_Slim

The last time I was on Amtrak, The lunch counter closed at 12:00 so the person behind the counter could go to lunch. But don’t worry Obummercare will be different.


11 posted on 08/06/2012 9:57:47 AM PDT by woodenickel
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To: To-Whose-Benefit?

That’s insane. Their food prices are so high, there’s no way they can lose money unless there’s a lot of theft going on by the staff or they’re way, way over-ordering perishables.


12 posted on 08/06/2012 10:00:34 AM PDT by kevkrom (Those in a rush to trample the Constitution seem to forget that it is the source of their authority.)
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To: woodenickel

“Mica estimated the per-employee loss on Amtrak’s food and beverage service—approximately $85 million—at a whopping $68,476”

Goobermint employees, losing us $68,476 each.

But the place holders in the Obamacare State Insurance exchanges are going to Save us money.

WASS.


13 posted on 08/06/2012 10:06:38 AM PDT by To-Whose-Benefit? (It is Error alone which needs the support of Government. The Truth can stand by itself.)
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To: To-Whose-Benefit?
Amtrak is a government sanctioned monopoly. There used to be an excellent private train that traveled nonstop from DC to Orlando. (Lorton, VA to Sanford, FL). You could bring your car along and go to Disney World plus it was great for Snowbirds traveling south for the winter. It served free dinner, breakfast, snacks and a movie. Of course, the government had to shut it down because it competed with Amtrak, which took it over and promptly downgraded the service. It is a shadow of its former self, even though it is considered the flagship of the Amtrak fleet. Sell Amtrak to private companies, allow competition, and stop government funding.

Consider the high quality of private rail service in Alaska, which is allowed only because it stays in one state. When government is the only provider of a service, you have no choice. Competition brings lower costs and quality to the customer. The profit motive actually encourages savings as there is a motivation to save money, (increased profit). Without that motivation, there is no reason not to pay $4 0r $5 for a can of coke.

14 posted on 08/06/2012 10:14:56 AM PDT by sportutegrl
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To: To-Whose-Benefit?

Do like third-world countries do, let vendors on the platform sell food at the stops.


15 posted on 08/06/2012 10:17:40 AM PDT by USMCPOP (Father of LCpl. Karl Linn, KIA 1/26/2005 Al Haqlaniyah, Iraq)
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To: To-Whose-Benefit?

1. No accountability for the purchase and use.

2. no accountability for the ultimate storage of food?drink items that do not spoil.

3. If you buy enough foodstuffs for 100 hamburgers but only have 30 riders, then the inevitable red ink occurs.


16 posted on 08/06/2012 10:23:48 AM PDT by wildbill (You're just jealous because the Voices talk only to me.)
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To: kevkrom

You forget they’re paying all their employees union wages. Get rid of the unions and many things the .gov does at a loss would have a chance of being profitable.


17 posted on 08/06/2012 10:24:52 AM PDT by MtBaldy (If Obama is the answer, it must have been a really stupid question)
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To: To-Whose-Benefit?
“IF YOU PUT THE FEDERAL GOVERNMENT IN CHARGE OF THE SAHARA DESERT, IN 5 YEARS THERE’D BE A SHORTAGE OF SAND.”

Milton Friedman

18 posted on 08/06/2012 10:32:05 AM PDT by SWAMPSNIPER (The Second Amendment, a Matter of Fact, Not a Matter of Opinion)
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To: woodenickel

I’ll bet they manage to lose money on booze, too.


19 posted on 08/06/2012 10:48:32 AM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: MtBaldy

Don’t union wages count as “theft by the staff”? ;)


20 posted on 08/06/2012 10:52:09 AM PDT by kevkrom (Those in a rush to trample the Constitution seem to forget that it is the source of their authority.)
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