A Stitch in Haste

Long-time readers of my blog know that I'm no...fan...of...Amtrak (what libertarian would be)?

My favorite statistic regarding this ultimate boondoggle is that the per-passenger-mile government subsidy is so high that it would be actually cheaper for the government to give people free plane tickets from New York to California than to underwrite their train ticket.

But even I was stunned to read this:

Riders on Amtrak may think that the $3.25 hot dog and the $1.50 bag of chips in the cafe car are no bargain. Neither does Amtrak. It is spending just over $2 for each dollar of food it sells on its trains, according to auditors.
...
Expenses for labor and food run about $83 million more than the food service brings in, according to the railroad's inspector general. That sum, twice Amtrak's food and beverage revenues, is without the cost of maintaining the dining cars on long-distance trains and the cafe cars used on short-haul routes like the Northeast Corridor; if those expenses are included, the losses come to about $130 million.
...
"Food and beverage is a key part of what the customer is paying for," [Amtrak Senior Vice President William] Crosbie said. "It's part of the amenities you need to offer when a customer wants to travel on our service."

This is, of course, utter nonsense.

People ride the train for the same reason they fly or drive: to get from Point A to Point B. Cheap hot dogs aren't going to coax anyone to switch from air to rail -- lower fares might, or greater convenience (e.g., between New York City and Washington). And, if the government subsidy is fixed, then of course scrapping the money-losing cafe car would only mean still lower prices. Stated differently, subsidizing the travel is bad enough -- do we real need to subsidize lunch too?

Why should eating and drinking on passenger rail be any different than it is for air travel, or the subway, or a movie theater? Either pay the (higher) price that allows the vendor to break even, if not make a profit, or bring your own. The idea of "snacks as a loss leader" is so unjustifiable as to question the fundamental business competence of its proponents (or its advocates in Congress).

So the next time you hear about Amtrak "needing" its subsidies, remember what that means: that someone, somewhere, is munching on a hot dog paid in part by your tax dollars. All in the name of "keeping rail alive."

I say kill it and pay for your own damn hot dog.