Food Service Under Attack (again)

[saxman]

This is an email I got from a contact.

In the U.S. House of Representatives, legislation is currently in development which will shape the future (or lack thereof) of passenger rail in our region over the next few years. This legislation is H.R. 749, the Passenger Rail Reform & Investment Act of 2015 (PRRIA-2015).

Today, Representative Gosar of Arizona is offering a number of amendments to be considered by the House Rules Committee for inclusion in the final bill. One amendment would change the time line for achieving break even status for food service on Amtrak trains. The present requirement calls for Amtrak to achieve break-even status on food service within five years, and Amtrak has indeed made significant progress during the first year of that process. Gosar's amendment would force Amtrak to achieve break even status within one year.

If this amendment actually becomes a part of PRRIA-2015, it would mean the end of Amtrak food service as we know it. The newly restored full dining car on the Texas Eagle would be gone, as would most if not all other food service. The end of this service would quickly kill our growing sleeping car business, leaving the train with little more than coaches and perhaps some sort of automated vending machine service. It is a recipe for the demise of the national network as we know it.

There will be several opportunities to stop this amendment, but the first is today when it will be heard by the House Rules Committee, chaired by Rep. Pete Sessions of Texas. Other Rules Committee members from our region include Tom Cole of Oklahoma and Michael Burgess of Texas.

Please CALL your representative's office today (Capitol Switchboard is 202-224-3121. Ask to be connected to the staff person handling transportation and Amtrak issues, and request that they oppose the Gossar "1 year" amendment and instead preserve the "5 year" requirement on food service profitability.

For those of you who attended Saturday's TEMPO meeting, this issue was discussed by Amtrak VP Tom Hall during his presentation, and this message will help bring everyone else up to speed on this newly emerging threat to our passenger rail service in Texas, Arkansas and Missouri.

Thanks for your assistance on this matter.

P.S. It is a known fact that food service on passenger trains operated by the private railroads in the pre-Amtrak era never made a profit; dining car service was provided as a loss leader amenity to encourage passengers to purchase a ticket for the train, much as the cruise ship industry now provides limitless food variety as an inducement for people to purchase a cruise ticket. These arguments may be helpful as we go forward, but the immediate need is to make sure that the time frame for this discussion remains 5 years rather than being reduced to the impossible 1 year proposed by Representative Gossar.

 

[Paulus]

NARP has the list of, and links to, the amendments.

The amendments prohibiting Federal funds being used to provide alcohol free of charge on Amtrak routes or providing free food to Amtrak employees riding for free on the Auto Train or long distance sleepers are reasonable in my opinion. One year requirement, not so much; don't really care about the cost of labor calculation. Posey's amendments targeting All Aboard Florida are nuts and I'll definitely be emailing my representative tonight about that.

As for being a loss leader: By the time of Amtrak it was simply just a loss and I doubt it's really changed by now.

 

[crabby_appleton1950]

NARP has the list of, and links to, the amendments.

The amendments prohibiting Federal funds being used to provide alcohol free of charge on Amtrak routes or providing free food to Amtrak employees riding for free on the Auto Train or long distance sleepers are reasonable in my opinion.

That's 15 amendments? Wonder how many, if any, will pass.

Do any Amtrak trains currently provide free booze?

 

[neroden]

Food service is still a loss leader. First thing people ask when I tell them about train service is "can you get a meal on the train". It's selling coach tickets, not just sleeper tickets.

 

[John Bredin]

Not all the amendments seem anti-Amtrak but NARP is urging members to urge their congressmembers to vote nay on all amendments. Odd.

As an aside, Rep. Gosar the Gozerian :giggle: needs to find another hobby than doing a modern-day imitation of Cato the Elder.* Or at least introduce one amendment with all his anti-Amtrak baggage instead of a flurry of them.

*The Roman Senator who ended every speech with delenda Carthago est (Carthage must be destroyed) regardless of the topic of the debate or his own speech. :huh:

 

[Paulus]

Food service is still a loss leader. First thing people ask when I tell them about train service is "can you get a meal on the train". It's selling coach tickets, not just sleeper tickets.

The question, of course, is how many coach tickets it sells.

On a side note, for your East vs West considerations: With one exception, the Superliner trains all have diner expenses in excess of 10% of total train expenses (ranging from CONO's 9.8% to the Auto Train's 20.5% with a non-Auto Train average of 12.1%) while the Viewliner/Amfleets were all below (Palmetto's 3.4% to LSL's 9.4% with a non-Palmetto average of 7.3%). That's not accounting for any revenue, just the bare expenses. It also doesn't account for the maintenance, fuel, and financing costs of the cars.

 

[Thirdrail7]

NARP has the list of, and links to, the amendments.

The amendments prohibiting Federal funds being used to provide alcohol free of charge on Amtrak routes or providing free food to Amtrak employees riding for free on the Auto Train or long distance sleepers are reasonable in my opinion. One year requirement, not so much; don't really care about the cost of labor calculation. Posey's amendments targeting All Aboard Florida are nuts and I'll definitely be emailing my representative tonight about that.

As for being a loss leader: By the time of Amtrak it was simply just a loss and I doubt it's really changed by now.

Amtrak employees pay for their food on the Auto Train so I imagine it is the rest of the system they are talking about. As for cost recovery, I'm skeptical of a 5 years, let alone 1 year.

Food service is still a loss leader. First thing people ask when I tell them about train service is "can you get a meal on the train". It's selling coach tickets, not just sleeper tickets.

I was around when they decided to lop off the cafe cars on trains under 5 hours. The comparison between trains with and without cafe cars was nothing short of staggering. That is why they were brought back. Even now, CSI reports show passengers really like the food cars...even if they don't really intend to use them. I liken it to a security blanket.

I wonder how much has changed over the years. I wonder if people would rebel if they lopped off the cafe cars like they did years ago.

 

[Paulus]

NARP has the list of, and links to, the amendments.

The amendments prohibiting Federal funds being used to provide alcohol free of charge on Amtrak routes or providing free food to Amtrak employees riding for free on the Auto Train or long distance sleepers are reasonable in my opinion. One year requirement, not so much; don't really care about the cost of labor calculation. Posey's amendments targeting All Aboard Florida are nuts and I'll definitely be emailing my representative tonight about that.

As for being a loss leader: By the time of Amtrak it was simply just a loss and I doubt it's really changed by now.

Amtrak employees pay for their food on the Auto Train so I imagine it is the rest of the system they are talking about. As for cost recovery, I'm skeptical of a 5 years, let alone 1 year.

The current five year plan is basically just a "Raise the percentage of money transferred from sleeper to diner" accounting sleight of hand.

 

[OlympianHiawatha]

That e-mail just sounds like a highly biased panic attack and likely nothing will come of it.

 

[Ryan]

Fortunately not everyone has that attitude, or it really would come to pass.

 

[neroden]

Food service is still a loss leader. First thing people ask when I tell them about train service is "can you get a meal on the train". It's selling coach tickets, not just sleeper tickets.

The question, of course, is how many coach tickets it sells.

On a side note, for your East vs West considerations: With one exception, the Superliner trains all have diner expenses in excess of 10% of total train expenses (ranging from CONO's 9.8% to the Auto Train's 20.5% with a non-Auto Train average of 12.1%) while the Viewliner/Amfleets were all below (Palmetto's 3.4% to LSL's 9.4% with a non-Palmetto average of 7.3%). That's not accounting for any revenue, just the bare expenses. It also doesn't account for the maintenance, fuel, and financing costs of the cars.

At first glance, this did not surprise me. Most of the Superliner trains are short! They do not have enough revenue cars to spread the food car costs over. But at second glance, I'm a bit surprised the CONO is so low (probably the cross-country-cafe saves money). And I'm a bit surprised that the Auto Train is so high, despite having 4 rather than 2 cars devoted to food service (I'd think auto loading expenses would be massive). And I'm quite surprised that the LSL has a higher percentage than the Crescent, which is shorter (maybe it's that extra unstaffed cafe? Dunno). There may be some non-obvious economies of scale on the *other* expenses for the LSL and Auto Train, things which have better economies of scale than the dining car costs, bringing down the percentage spent on other expenses. Or it may be that this is related primarily to cost of stock, in which case dining revenue would actually scaling up faster than expenses.

Anyway, I trust my Senators to vote the right way, and my Representative (who deliberately does his best NOT to represent my part of the district) is probably hopeless, but maybe I'll call him.

 

[Bob Dylan]

No point in contacting my two Senators, theyre hopeless,( we miss Kay Bailey Hutchison) but my Rep here in the Peoples Republic of Austin is excellent and supports Amtrak and other Rail!!

 

[Devil's Advocate]

That e-mail just sounds like a highly biased panic attack and likely nothing will come of it.

Is your position that nobody is actually trying to defund Amtrak or is your position that those who are trying to defund Amtrak will always fail?

No point in contacting my two Senators, theyre hopeless,( we miss Kay Bailey Hutchison) but my Rep here in the Peoples Republic of Austin is excellent and supports Amtrak and other Rail!!

Rather than give up why not call them anyway and enjoy poking a little fun at their expense? Put these folks on speed dial and whenever you read about something ignorant or hypocritical they said or did feel free to give their office a call and remind their staffers just what kind of troglodyte they're sucking up to. The USS may be sinking into a period of third world level corruption and mediocrity but we can still have a few laughs along the way.

Senator John Cornyn: 202-224-2934

Senator Ted Cruz: 202-224-5922

 

[saxman]

This is a house bill. So calling your senators will do no good. Call your House Representative. Even if you "know" how they will vote, it's important to call. It's similar to not voting in an election because "my candidate won't win anyway." Unfortunately that attitude is why many of these bozos get into office!

I just called and asked my rep. to oppose all anti-Amtrak amendments on house bill HR749. It literally took one minute!

 

[Devil's Advocate]

This is a house bill. So calling your senators will do no good. Call your House Representative. Even if you "know" how they will vote, it's important to call. It's similar to not voting in an election because "my candidate won't win anyway." Unfortunately that attitude is why many of these bozos get into office! I just called and asked my rep. to oppose all anti-Amtrak amendments on house bill HR749. It literally took one minute!

You're absolutely correct Saxman. That being said it's easy to give phone numbers for Senators since I know Jim has the same Senators I do. Amtrak is under attack in both houses of Congress so in the end they all need to be lobbied (or ridiculed) eventually. BTW, do you actually play a saxophone or do you fly to Panama or something?

 

[SarahZ]

This is a house bill. So calling your senators will do no good. Call your House Representative. Even if you "know" how they will vote, it's important to call. It's similar to not voting in an election because "my candidate won't win anyway." Unfortunately that attitude is why many of these bozos get into office!

I just called and asked my rep. to oppose all anti-Amtrak amendments on house bill HR749. It literally took one minute!

Truth.

I contacted Rep. Upton's office. It only took a few minutes.

 

[Guest]

Do any Amtrak trains currently provide free booze?

Good question.

Are the Wine and Cheese parties a thing of the past, on all trains?

Do Acela First Class passengers get a drink?

 

[Guest]

As for cost recovery, I'm skeptical of a 5 years, let alone 1 year.

I have to agree.

Rejecting the 1 year, but supporting the 5 year, is simply delaying the inevitable.

As long as Congress allows unions to be a part of Amtrak food operations, the consequences will remain the same.

 

[Bob Dylan]

Do any Amtrak trains currently provide free booze?

Good question.
Are the Wine and Cheese parties a thing of the past, on all trains?

Do Acela First Class passengers get a drink?

The only trains with "Free" drinks and food left is Acela FC! ( the meals and drinks are included in the rather hefty fares which may or may not be reflected in the smoke and mirrors accounting Amtrak uses!)
The Coast Starlight re- instated the Wine Tastings in the PPC for a fee and you also have to pay additional for a cafe cheese and cracker tray if you want that!

 

[Guest]

I just called and asked my rep. to oppose all anti-Amtrak amendments on house bill HR749. It literally took one minute!

Do they vote separately on each amendment? Or is it a package deal; all or nothing? The "nothing" option means no Amtrak, true?

 

[Ryan]

They vote separately on each amendment.

 

[neroden]

Seriously, my Rep seems to go out of his way to offend people from my part of the district -- not kidding. And his staffers *do* ask for addresses so that they know where you've called from. It's quite possible that my asking him to vote against the amendment would cause him to vote for it. Spiteful little man.

 

[afigg]

NARP has the list of, and links to, the amendments.

The amendments prohibiting Federal funds being used to provide alcohol free of charge on Amtrak routes or providing free food to Amtrak employees riding for free on the Auto Train or long distance sleepers are reasonable in my opinion. One year requirement, not so much; don't really care about the cost of labor calculation. Posey's amendments targeting All Aboard Florida are nuts and I'll definitely be emailing my representative tonight about that.

Yea, besides the anti-Amtrak amendments, Posey (R-FL) really has it in for the All Aboard Florida service. The executives at AAF and the FEC must be wondering what the heck they did to have a Congressman try to block them in an re-authorization bill that they have little to do with. They are a private owned company seeking to start a transportation service - shouldn't the right wing Republicans be in favor of AAF? On the other hand, as a private company, they can make campaign donations in the next primary and election to Posey's opponents, which Amtrak, of course, can not do.

I see Mica has a proposed amendment to require the NEC commission to study express service. What good will this do except to force the NEC Commission to waste funds on a study? If Amtrak determines that after acquiring 28 next Gen HSR trainsets that an express WAS-PHL-NYP Acela service to the schedule will generate enough revenue to make it worthwhile, I think Amtrak will do so - without waiting for an NEC Commission study.

 

[Devil's Advocate]

As critical and dismissive as I may seem on the surface I can accept and work with a reasoned ideology in order to get things done. What I cannot accept and cannot work with is deliberate sabotage derived from blatant hypocrisy. In Western Europe my views would largely align with mainstream fiscal conservatives and social moderates with plenty of room for shared sacrifice toward common goals. While here in the US my views are seen as those of a radicalized fringe leftist with few if any opportunities for finding common ground with either of our two entrenched parties.

 

[afigg]

The Hill newspaper take on the upcoming vote on the re-authorization bill: Amtrak vote bumped by DHS bill. I expect most of the proposed amendments will fail outright, but it only takes one or two damaging amendments that sound ok at the surface to get passed by the House that would lead to being dependent on the Senate to kill the amendment, Which the new Senate might not be able to do.