US Senate Operates Its Food Services in the Red, Votes to Privatize Its Restaurants

If a person ran a business for over 40 years, provided lousy services and goods, and turned a profit in only seven of those years, one would wonder how much business sense that individual had, and if he should be running a business in the first place. Well, guess what? That's exactly what the United States Senate has been doing with its internal restaurant services for over four decades. This fall the financial albatross will be mercifully euthanized as even Democrats admit they need to do something they ordinarily consider anathema: They're going to privatize their restaurants.

Democrat senator Dianne Feinstein of California, the chairman of the Rules and Administrations Committee which oversees the operation of the Senate, explained that there was "no choice" in the matter. Since 1993, the Senate's restaurants have lost over $18 million, $2 million of that in the last year alone. The Government Accountability Office, or GAO, found that current management "did not view profitability of the system as a viable objective due to an expectation that the restaurants will operate at a deficit annually." To top it all off, the food is, shall we say, unappetizing. Senate members regularly walk across the Capitol to eat in the basement cafeteria on the House side; House members never reciprocate. The once-profitable catering division has also been losing money as senators request waivers to bring in outside food for special events.

Just a week ago the Senate voted to turn over the running of their various restaurant locales to a contract company, Restaurant Associates of New York, which has been running food services for the House of Representatives since the 1980s (it's worthwhile to note that the House at that time had a Democrat majority). I can't say for certain, but I'm guessing it didn't hurt when Feinstein started arm-twisting by saying if the Senate didn't approve of the privitization, prices in all Senate restaurants would increase by 25%, a price increase which would come directly out of the senators' pockets!

The major complaint by some Democrats is that with an outside company calling the shots, salaries and benefits for food services workers will decrease and jobs will be cut. Eventually, Democrats agreed to pass legislation that includes guarantees for those who go to work for Restaurant Associates. They would retain their current salaries (average annual salary is $37,000) and federal health and pension benefits. Employees who choose to leave instead would receive buyout packages of as much as $25,000--paid by the Senate (translation: our tax dollars). Half the current employees are likely to take that deal. However, new employees will not receive federal benefits, though they will be allowed to unionize.

What is the end result of all this? Better managed food services for the Senate, less expense, more productivity, and--wonder of wonders--profit. Restaurant Associates has paid $1.2 million in commissions to the House since 2003. One estimate shows Restaurant Associates turning a profit within three years and paying about $800,000 annually in commissions to the Senate.

I find it ironic that the government leaders who have raised the most fuss about letting a private company handle their food services are the same ones who claim they should be overseeing universal health care and running the oil companies. If their track record with their food services network is any indication, American citizens will be forking over even more tax dollars for non-existent health care and $25 a gallon gas. Let's leave running businesses to the people who actually know how to do so, and let our elected officials do what they do best, which is...no, wait, don't tell me, I'll think of it in a minute...