Friday, 3 August 2012

Secular Café: Amtrak Losing Millions Each Year on Food Sales

Secular Café
For serious discussion of politics, political news, policy, political theory and economics and events happening round the world
Amtrak Losing Millions Each Year on Food Sales
Aug 3rd 2012, 19:29

Quote:

According to audits by the Government Accountability Office, an investigative arm of Congress, and the railroad’s own inspector general, Amtrak loses about $80 million a year selling food. Since 2002, Amtrak’s food service has lost $834 million.

...

According to charts shown by Republican committee staff members during the hearing, Amtrak charges about $2 for a soft drink, but the cost to taxpayers is about $3.40 when labor is included. A $9.50 hamburger on the train costs taxpayers $16, the charts showed. Labor adds nearly 60 percent to food and beverage costs.
http://www.nytimes.com/2012/08/03/us...er_share=36b59

Great news - if you ride Amtrak you can buy a crappy hamburger for $9.50. Unfortunately the taxpayer picks up the rest of the $16 cost.

So, despite the fact they have a captive audience and over-priced food, they manage to lose $millions per year.

Could this be a case where maybe the government isn't necessarily the best at running something?

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