As we have booted the subject of "food service on the trains" much like a soccer ball the last few days, I wasn't paying attention, but there was this familiar odor in the air. I just ignored it. And then this afternoon it hit me that I know what that odor is!!!!
Back in the 70's and 80's as companies bought larger and supposedly better copiers, computers, executive air planes and began putting corporate logos on sports venues, something that had been mere pocket change in the previous decades became an 800 pound gorilla that was too big for any existing cages in the corporate structure. So we learned to put the big monster costs into some central budget, and then in the accounting department we simply divided the total expenses of this 800 pound gorilla by the total corporate head-count. So you have a research lab with a number of very highly paid, highly educated folks and your department has to eat the corporate gorilla charge per employee. With what the research department was paying their people and the money they were spending on lab equipment and materials, the gorilla was little more than a pesky gnat financially. But if you were the security detail for a small, low-traffic, low-tech part of the business, the gorilla charge for your little 6 person staff of "greeters" manning the front desk could exceed the cost of that entire department before applying the central office charge. If in a small remote corporate plant where there were virtually no restaurants in the neighborhood, the four person staff that put together a lunch counter to meet the needs of the 60 people working in that remote locations was not costly at all... it made just a little money... until you hit them with the gorilla charge.
Yup. Four minimum wage people fixing light lunches in Brinkley, AR got hit with the same "per employee central fund" charges as the four people who made up the corporate legal team working at a prestige location in Manhattan and those four people all were paid large six-figure incomes. I can see the phone call now from some vice president in Charlotte, NC to Brinkley, AR. "You have to get your food services costs in line, or we will close the cafeteria!!!"
Remember the heroes in the automobile business and some other lines of work in the 1970s and the 1980s. They discovered "outsourcing". We don't make that part in-house any more. We "outsource" it to a local plant. Folks were getting big bonuses. Folks were getting promotions. And then after a few years the smarter bean counters finally figured it out: They were actually paying a little bit more for parts made on the outside than what was the TRUE cost what it cost to make the parts in-house. The outside parts did not have to add in the gorilla charge for the corporate jet, the sports stadium logo, the monster computer system, and the monster Xerox and printing machines that were charge out of central office as a "head tax".
When I read that last link posted here about the congressional reviews I finally recognized the strange smell in the air. Food service on Amtrak Trains is likely having to absorb big central "gorilla charges" into their budgets making it look like they lose $66,666.66 PER EMPLOYEE, PER YEAR.
My observation: If they fire all the current food service employees and grant a franchise to IHOP or McDonalds or Marriott to do food on the trains, the financial picture at Amtrak will not change. All those "central office charges' will be reallocated to other departments and the overall operation will still lose money.
It happens in corporations. It happens in government. (Boys and Girls: Can you say "U. S. Postal Service"? ) A lot of publicly traded corporations have to work hard to figure out how to properly allocate expenses. Congress does not have the cajones to begin to deal with such accounting matters.