PRESENTATION FORMAT

Mr. ROOF. Thank you, Mr. Chairman.

This is the usual request on the operation of the Senate restaurant. On page 1, we give you the legislation involved. On page 2, we give you a breakdown of the units involved in the operation. On page 3, we give a breakdown by units for the full fiscal year 1969, showing the gross sales and the loss or profit in each unit.

On page 4, we give you a financial statement of operations so far this year, on the same basis of sales and profit or loss by units. On page 5, we have the following general statement:

The same amount, $497,000, as allowed for the current year is being requested for the fiscal year 1971. It is hoped that through economies in operations and keeping the menu prices current, we will be able to operate within this amount.

REPORT TO SUBCOMMITTEE ON THE RESTAURANT, COMMITTEE ON RULES AND ADMINISTRATION: ANTICIPATED POLICY CHANGES

A report has been submitted to the Subcommittee on the Restaurant, Committee on Rules and Administration, relating to the current financial condition of the restaurant and estimates of conditions for the coming fiscal year.

As soon as the Subcommittee on the Restaurant has an opportunity to consider the facts, estimates, and recommendations submitted, we feel that some further policy decisions will be forthcoming which will recognize the unique food services necessary for the efficient operation of the Senate, the welfare of the restaurant employees, and the necessity for economies in order to live within a reasonable subsidy.

1970 LOSS

Senator MONTOYA. What was your loss last year, the last fiscal year?

Mr. Roof. $435,000.

Senator MONTOYA. This year?

Mr. ROOF. We have wage increases each year, Senator, as you know, and last year we had roughly an across-the-board, 10-percent increase for management personnel, and then we had the wage board increase for the food workers of about 5.2 percent.

Senator MONTOYA. Would you insert at this point in the record the figures for last year? That is for the last fiscal year.

Mr. Roof. The total?

Senator MONTOYA. The total breakdown for each dining room. Mr. Roof. That is on page 3 of the justifications, Senator.

Senator MONTOYA. Is this for last fiscal year, or the current fiscal

year?

I get it now. So last year you lost $434,993?

Mr. ROOF. Right, sir.

1971 LOSS

Senator MONTOYA. This year, this loss came down to $394,661? Mr. ROOF. Well, of course, we are not through with the current fiscal year as yet, as you know, but

Senator MONTOYA. At this rate, what do you think it would amount to?

Mr. Roof. It looks like, Senator, we might run slightly over the $497,000 that we have, unless Mr. Diamond-and we have talked to him seriously about this-unless he and the Rules Committee can come up with some formula for the rest of the year which would cause some economies.

We did, in January, I believe, put in new menu-price increases, which we feel should, over these last few months, have some levelingout effect on the losses.

PRICE COMPARISONS: EXECUTIVE DEPARTMENTS AND COMMERCIAL

CAFETERIA

Senator MONTOYA. How do your prices in the Senate compare to the prices downtown?

Mr. ROOF. I think Mr. Diamond will have to answer that, but as far as the House is concerned

Senator MONTOYA. In restaurants of comparable quality.

Mr. ROOF. We did have a difference between the House and the Senate price structure, and I believe now, since we have instituted the new increases in the Senate, you have comparable prices in the House and the Senate eating facilities.

On the downtown firms, I yield to Mr. Diamond.

Mr. DIAMOND. It is difficult to arrive at exact comparisons. We have been making comparisons between operations of facilities for feeding Government employees, such as in executive departments of the Government.

I think you will find that our price structure is similar; but making comparison item by item, we feel we give just a little better quality for the money.

In comparison with commercial cafeterias, our prices are, I believe comparable, and, of course, we also have the services for the Senators and others in the table service dining rooms. The prices will tend to be somewhat lower than they are in better hotels, but our prices are reasonably close to comparable facilities.

However, there, we serve a dual purpose. We serve the Senators and a good number of the press, public, and staff from that same menu. Comparisons are really difficult to make.

CAPITOL DINING ROOM

Senator MONTOYA. I notice according to these figures that your biggest loss occurred in the Capitol dining room.

That means the House and Senate dining rooms?

Mr. DIAMOND. No, sir; that is the Senate dining rooms in the Capitol Building, and there is an additional dining room for Senators in this building.

The first item on this statement refers to the dining rooms on the first floor, Senate side of the Capitol only.

Senator MONTOYA. Am I to understand that the House dining room does not have a loss?

Mr. DIAMOND. Mr. Roof would be able to advise you on that.
Senator MONTOYA. It is not reflected here.

Mr. ROOF. No, sir; this is for Senate operations only.

HOUSE RESTAURANT LOSSES

Senator MONTOYA. Just for my own information, what is the loss on the House side on all its operations?

Mr. ROOF. Last year, it was $172,000. This year, it will run about $248,000. Next year, we have asked for a budget of $270,000.

Senator MONTOYA. Why is it less on the House side? Is it because of the volume?

EXPENDITURE LIMITATION

Mr. ROOF. I think, Senator, because of the difference in the type of service. As you know, we have two large cafeterias over there, which has a tendency to bring our loss down, and in addition to that, as I mentioned last year, the House Appropriations Committee took a very dim view of large subsidies last year, and they simply gave us so much, and we stayed within that. They said to raise menu prices and take whatever action we considered necessary to stay within the reduced appropriation.

They gave us an initial appropriation of $175,000, and we ended up with a total loss of $172,000. The House has had the benefit of cutting down on the hours of operation. That is where considerable money was saved. Whereas many of the Senate people work a full 8 hours a day, the House employees might work 6 and 7 hours a day.

CONSIDERATIONS FOR REDUCTIONS OF LOSSES BY SENATE RESTAURANTS: REDUCED HOURS OF OPERATION

Senator MONTOYA. Why can't we do that here in the Senate? Mr. Roof. It is, of course, a hardship on the employees in some cases to be on a part-time basis, employee morale and employee relations would no doubt be adversely affected.

Senator MONTOYA. Isn't the same thing true in the House?

Mr. Roof. Yes, to some extent. These are some of the items we have discussed with Mr. Diamond here in the last few weeks, and as I said in the prepared justifications, we submitted a statement at the end of last week to the Rules Committee, pointing out these areas in which probably there can be some savings.

CLOSING CAPITOL DINING FACILITIES DURING SENATE RECESSES

I know when Senator Robert Byrd was Chairman of the Restaurant Subcommittee, and he was a member of this committee at the same time, he had me do a study then on where we could save money without seriously hurting the service to the Senate. One of the items we agreed to cut out was keeping the Capitol dining facilities open during adjournment, when the Senate goes into a 3-month adjournment, which perhaps you will do this year. We figured at that time it would save us $25,000 a year.

We put that into effect, but since that time-last year it wouldn't have made any difference, because you were here all year-but since

that time, effective with the 1968 adjournment, the Rules Committee advised Mr. Diamond to stay open in the Capitol and so we are back where we were several years ago, of having that dining room open, and we really don't need it during adjournment except to give at least some of the employees full employment, and hope that the losses won't run too much.

Senator COTTON. When you didn't keep it open, did you lose a lot of employees when it came time to start next year?

Mr. Roof. You don't lose any of your, you might call, old standby employees, but you would lose some of the current employees who have been here maybe 6 months or a year.

Senator COTTON. Did the Rules Committee indicate why they decided to ask you to keep open during recess?

Mr. Roof. I believe, Senator, to be frank with you, that it was at the request of several members of the Senate.

Senator MONTOYA. That you stay open?

Mr. Roof. Yes.

Mr. DIAMOND. I think this request to keep the Capitol facilities open during adjournment, came from individual restaurant employees who had approached Senators with this in mind, what they were going to do when the Senate adjourned.

PROFITS FROM CATERING SERVICE

Senator COTTON. I asked a question last year, and I can't remember what the answer was.

On these operations that you have in other rooms of the Capitol, especially-I have a group down from New Hampshire and arrange a lunch in the Vandenburg Room or some other room. Do you lose money, or break even, on those extracurricular activities?

Mr. DIAMOND. These activities produce a very excellent gross profit. This profit, however, is reduced somewhat by reason of the fact that, in order to handle the demands made upon us, which at times are quite large, it is necessary for us to equip, maintain and pay for an organization appreciably larger than we otherwise would require.

These demands occur at certain peak periods, and, of course, you have to have an adequate kitchen operation and sufficient staff to handle those peaks.

When considered on a full-year basis, particularly a year in which the Senate goes out of session, for any appreciable period, the heart of the problem is the large organization which is actually needed only part of the time, part of the day and part of the year.

OUTSIDE EMPLOYMENT FOR RESTAURANT EMPLOYEES

Senator COTTON. Quite a proportion of your employees, during the earlier part of the year, when usually the Senate doesn't have many evening sessions, do they work downtown at restaurants?

Mr. DIAMOND. There are some who do, but not too many. Some of the male employees will work at a restaurant, but most of the girls have their home obligations, and they are very glad, I think, to go home in the evening.