RECOMMENDED PRICE INCREASES FOR ITEMS SERVED BY THE EXECUTIVE DINING ROOM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A000300020003-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 20, 2016
• Document Release Date: September 21, 2006
• Sequence Number: 3
• Publication Date: May 20, 1977
• Content Type: MF

DD/A Registry
Approved For Release 2006/09/21: 65A00030002000, - , -2 ~qV .
2.0 MAY 1977
FROM
UM FOR: Deputy Director of Central Intelligence
John F. Blake
Deputy Director for Administration
Recommended Price Increases for Items
Served by the Executive Dining Room
Action Requested: The Director's Dining Room and
the Execuitive Dining Room (EDR) are both operated by the
hDR. This memorandum requests approval to increase prices
for food and beverages served by the EDR to be effective as
of 1 July 1977.
2. 3ackgrouzn.d:
The Audit Staff recently completed its audit of the
Executive Dining Room and issued their Report of Audit, dated
16 February 1977. The auditors noted EDR prices had not in-
creased since 1974. The auditor made a comparison of prices
for items served in the dining room with the same or similar
items served in the cafeteria which indicated that the EDR
prices had not kept pace with those in the cafeteria being
charged to employees. fie noted that "while the EAR does seem
to be recovering food costs, this disparity in prices may
become a subject of concern to Agency management.. The
auditor concluded by recommending that we review prices in
the EDR, to determine if an increase is warranted.
The Office of Logistics has conducted a review of
its operating costs and has made a comparison of prices
charged for like or similar items such as salad, soups,
beverages, and desserts by the EDR and cafeteria. A comparison
of entree prices is more difficult due to variations in quality,
quantity, and selections served. Tice results of this review
and comparisons indicate the following:
a. Exclusive of the cost of salaries.
which currently approximate $119,000 per year,
the EDR has been self-sustaining and has managed - F1P1.+?...
OL 7 10,1(!7
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to achieve a modest profit due largely to special
functions, i.e., cocktail parties. This profit or
operating income was approximately $6,800 for FY 1976
and is currently estimated at $6,200 for FY 1977. It
has been the practice to expend such funds for replace-
ment of equipment, furniture, and utensils. A recent
example was the expenditure of approximately $7,300
for a refrigerator and all new DCI china settings.
Any funds remaining at the end of the year are carried
over or paid back to the treasury. In the current
instance, had we not carried funds over we would be
projecting a loss for the current FY of approximately
$1,000.
b. The GSI, on 25 April 1977, put into
effect a general 5 percent price increase, the
second increase since 1975 which created even more
disparity in the prices between the two facilities
for comparable items.
c. There has been an average increase of
22 percent to the EDR in the cost of the basic entrees
served. A list of these entrees and comparative costs
is included as Attachment 1. However, according to the
36th edition (1976) of the Year Book for Bureau of Labor
Statistics, there was an 11.36 percent increase in the
price of all foodstuffs between 1974 and 1976.
Staff Position.
Three measures are necessary to keep the EDR on a
self-sustaining basis, exclusive of salaries, and also to
keep prices in line with GSI. The first is that EDR prices
like or similar items served in the cafeteria should be
increased by 15 percent to equal or exceed t SI prices, which-
r is greater. Secondly, the same increase of 15 percent
should be applied across-the-board for all other items on
the EDR menu. The figure of 15 percent represents a compromise
betweea the official rate of inflation and our actual costs
for certain items but we believe it to be equitable in view of
current and projected cost of foodstuffs. I:tly, the
standard price for cocktail parties with hors d'oeuvres should
be increased from $4.50 to $5.00 in order to partially offset
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the cost of food served and the overtime reo tai red to
properly prepare and serve for such parties. A suaarry
of current and proposed prices is shown in Attachment 2
hereto.
Although it is feasible to raise the :vices higher
in order to gross pore income t as notes nary or equipment
replacement, such funds would revert to the treasury as an
offset to the subsidized salaries. However, lar :e price
increases would reduce patronage a.0 woull ba insignificant
in offsetting the total subsidy.
4. kocorendation: It is recortente-1 that approval
be granted--to increase the prices for It.-DR meals and special
functions as set forth in Attac?z.ent 2.
~j3cbfl s. yid:.
21qir! F_ Bin
DISAPPROVE
Ts/ E. H Knoci6 2 4 MAY 1977
Distribution.-
Ori; - Return to i-L via :., /A (LSD Official)
2 - DCI w/eats
-- ER w/atts
2 - TWA w/ tts
S- R
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Attachment 2
Adjustments to Equalize Cafeteria Prices
Item
EDR Cafeteria Recommended EDR Price
Soup
.30 .50
Milk
.20
Coffee
.20
Coffee
1
20
(Carafe)
.
.90
25
Tea
.
.20
Dessert .30 .25/.60
.40
(EDR limited to sherbet, ice cream, and fruit cup)
25
Juice
.20
.
Salad
.25
Regular Lunch
Delmonico
Sirloin
Filet Sandwich
Light Lunch
Price Increases-in EDR
Present
$ 2.35
3.00
3.00
2.75
1.45
Recommended
$ 2.60
3.45
3.45
3.15
1.65
All except Filet Sandwich and the Light Lunch include vegetable,
juice and beverage
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Price Increases in EDR
(Continued)
Recommended
Jumbo Salad
1.25
$ 1.45
Low Cal
1.25
1.45
Steak Special
1.75
2.00
Director's Dining Room
Cornish Hen
Lamb Chops
Veal Chops
Delmonico
Veal Cordon Bleu
Filet Mignon
Chicken Cordon Bleu
$ 3.00
3.00
3.60
3.60
3.60
3.90
4.50
3,25
All meals above include
and beverage
juice, soup, salad,
Recommended
$ 3.45
3.45
4.15
4.15
4.15
4. S0
5.15
3.75
vegetable, dessert,
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