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 ...
FUBARSquared
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.
$16.15 for a stupid CHEESEBURGER? And who on earth besides the government pays $3.40 for a can of soda?
One thing is for sure, this food company isn't owned by Bain Capital.
Takes real talent to lose money selling food on a train.
Any company forced to pay government wages and benefits....
Guberment run, all I need to know..... =.=
Yet another of the thousands of indicators of the accountability of the Federal government.
ZERO.
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.
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.
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.
“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.
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.
Do like third-world countries do, let vendors on the platform sell food at the stops.
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.
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.
Milton Friedman
I’ll bet they manage to lose money on booze, too.
Don’t union wages count as “theft by the staff”? ;)
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