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[[underlined]] Museum Restaurant Operations and Facilities [[/underlined]]

[[underlined]]]] Smithsonian Food Services [[/underlined]]

The Secretary pointed out that major food-serving facilities are maintained by the Smithsonian in the National Air and Space Museum, the National Museum of Natural History, the National Museum of American History and the Smithsonian Castle; modest facilities, serving both public and employees, are also operated in the Hirshhorn Museum and in the National Portrait Gallery/National Museum of American Art. Gross sales in all these facilities are at an approximate annual level of $9 million, representing some 3.2 million customers; net revenue to the Institution from these operations this year is expected to be $1,050,000.

Until Labor Day of 1981, these facilities had all been operated by concessionaires, paying royalties to the Smithsonian on food sales. At that time, however, coincident with the expiration of a contract with ARA  Services, Inc., the Institution, under the supervision of the Business Manager, undertook to operate the restaurant at the National Air and Space Museum directly, in an experiment to determine whether self-management of food facilities would provide better service to the public and employees at an acceptable financial return. As reported periodically to the Regents, the operating costs of self-operation have been higher than expected, and the net gains much lower; in addition, continuing management and personnel problems have required more attention and have produced less improvement than was hoped. An internal review of this facility in comparison to the other Smithsonian cafeterias was undertaken this spring, and is ongoing. In addition, a food consulting firm has been retained to prepare an overview of all Smithsonian food services and provide guidance in regard to their management.