Passenger Trains > "Getting there is half the fun" (Bruce Richardson)

Written by J. Bruce Richardson, Corridor Capital LLC

https://www.railwayage.com/passenger/intercity/getting-there-is-half-the-fun/

"Almost 20 years ago, there was a good solution which Amtrak experimented with to make its dining cars on long distance trains perform better financially: It was the 24-hour dining car on the Sunset Limited. This was accompanied by an onboard promotion of “When You’re Hungry, You’re Hungry” and promotional materials were placed in every coach seatback and sleeping car accommodation.

It was a financially successful experiment that ended because the management of the Sunset went from one business group to another, and the succeeding business group management invoked the “not invented here” reason for ending it.

The basis for the experiment was sound: Instead of cutting a dining car’s offerings as a way to prosperity, the opposite was done, expanding to prosperity and making full use of an expensive asset."

Has anyone ever seen any credible documentation to support the repeated claim that it was "financially Successful"?

Probably shredded when they switch business lines.

I found the level fighting between divisions to be astounding. I could not believe how quickly mgt was ready hurt the product so their personal agenda's and ego's could be inflated. This is nothing new.

I started to think that was a cool idea, then I recalled some incidents that killed off late night lounge service on the Night Owl, the overnight NEC train between Boston and Washington. IIRC, this was in the late 1970s/early 1980s.

Let's just say the lounge car took on the atmosphere of an after-hours bar in any of the northeastern cities the train passed through. I believe actual gunfire was involved at one point.

Now the Sunset Route ain't the corridor, and a diner ain't a lounge. But I'm not sure I'd want the waiter gig on an all night Amtrak diner.

Jishnu Wrote:
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> Has anyone ever seen any credible documentation to
> support the repeated claim that it was
> "financially Successful"?

Amtrak's official financials for FY99 that Mr. Richardson discusses shows:

Sunset Limited - 114,000 riders
$17.3 million revenue
$52.6 million costs ($47.4 million in train and route costs)
53% load factor
860,000 train miles
$152 average fare

I've got the detailed account breakdown too if you are interested.

For those who were wondering about the results of the
24-hour diner test program on the Sunset Limited:

The 24-hour dining car program on the Sunset Limited provided
for the following meal times:

Breakfast: 6:00 a.m. to 11:00 a.m.
Daytime Dining: 11:00 a.m. to 5:00 p.m.
Casual Dinner Dining: 5:00 p.m. to 6:00 p.m.
Dining at Sunset: 6:00 p.m. to 9:30 p.m.
Dining Before Sunrise: 9:30 p.m. to 6:00 a.m.
Sleeping Car Room Service: 24 hours a day

The statistics for actual dining car revenues on the Sunset Limited for
the conventional three-meal operation in Fiscal Year 1999, and the
projected figures for the 24-hour diner program:

FY 1999 Actual:

Revenue: $3.04 million
Labor Expense: $3.47 million
Food Expense: $1.37 million
Non-Consumables: $404,000
Commissary: $429,478
Net (Loss): $2.63 million
Loss per meal/item: $9.42

Test Financials, projected to full Fiscal Year:

Revenue: $5.63 million
Labor Expense: $3.79 million*
Food Expense: $1.40 million
Non-Consumables: $405,000
Commissary: $430,000
Net (Loss): $395,000
Loss per meal/item: $0.66

* Labor expense increased, primarily as a result of an added
Chef and Lead Service Attendant.

Actual performance, tallied after the test program was
ended, was "reasonably close" to the "rather startling" projections
according to documents created for the Gulf Coast Business Group.

Employees enjoyed higher tips than previously, and more rest time
during their work day.

Sightseer Lounge Car Impact:

The tests of the 24-hour dining car service demonstrated an
unexpected result on lounge car sales. Lounge car sales increased
during the test trips instead of decreased. This was attributed to
passengers being more aware of food service opportunities, and thus
and tempted to make more food and drink purchases as a result.

Both guests and employees embraced the concept during testing.
Many positive comments resulted from the tests.



Edited 2 time(s). Last edit at 06/14/18 21:56 by GenePoon.

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The Three Rivers' (and Pennsylvanian's) OBS base was Pittsburgh of 18 people who rotated through all duties. Except for a closure on either side of Pittsburgh for about an hour, it was open all night. No dorm space was needed in the sleeper.

Of course such flexibility had to be quashed. The OBS base is gone, the train is gone, and such progressive concepts do not return.

Thanks for the data Gene - but how is $2.6 million in additional sales achieved with only $30,000 in additional food stock costs?

Following dining car rules, a lot of unused food has to be destroyed
for food safety purposes, such as open packages at the end of a shift,
etc. The 24-hour dining car eliminates a lot of that because the kitchen
never closes. Less waste, better product utilization, plus the added
budget more than provided for enough extra food stock to handle the
sales.

Also, sale of alcohol adds a lot to the sales figure. A diner is
always stocked with alcohol, but it's usually not sold as much as possible.