Washington, DC – The loss of over $80 million every year in Amtrak’s food and beverage operations will be the focus of a hearing Thursday by the Transportation and Infrastructure Committee, chaired by U.S. Rep. John L. Mica (R-FL).
Since 1981, Congress has required that Amtrak's revenues from the sale of food and beverages on trains bring in more revenue than it costs to provide the service. To further this goal, Amtrak was given the authority to contract out its food and beverage services. Amtrak began contracting out the management of its commissary, logistics and supply chain operations for food and beverage services in 1999, but the actual sale of food and beverage items onboard Amtrak trains is performed by Amtrak employees. Amtrak has never broken even on food and beverage operations, and instead has seen a steady net loss of an average of $83 million per year over the last 10 years.
Both the Amtrak Inspector General and the U.S. Government Accountability Office (GAO) have previously found significant waste, fraud and abuse in Amtrak’s food and beverage service. Despite calls to reduce losses, the railroad continues to lose money on food and beverage service, with a net loss in 2011 of $84.5 million. Currently, Amtrak is spending $1.70 to provide food and beverage services for every $1 in food and beverage revenue.”
Thursday’s hearing will investigate the monetary losses associated with Amtrak’s food and beverage operations; examine management deficiencies identified by the Amtrak Office of Inspector General in reviewing Amtrak’s food and beverage operations; and explore best practices and alternative options for improving the cost-effectiveness and quality of food and beverage service aboard Amtrak trains. More information on Thursday’s hearing can be found here.
WHAT: Hearing of the Committee on Transportation and Infrastructure, U.S. Rep. John Mica (R-FL), Chairman, “A Review of Amtrak Operations, Part I: Mismanagement of Food & Beverage Services”
WHEN: 10:00 a.m., Thursday, August 2, 2012
WHERE: 2167 Rayburn House Office Building
Washington, D.C. 20515
A live webcast of the hearing will be available here.
WITNESSES:
• Hon. Joseph Boardman, President, National Railroad Passenger Corporation (Amtrak)
• Mr. Ted Alves, Inspector General, Amtrak Office of Inspector General
• Ms. Patricia Quinn, Executive Director, Northern New England Passenger Rail Authority
• Mr. Dwayne Bateman, Employee, Amtrak Food and Beverage Services
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