Special thanks to contributing writer 

Gunnar Gunnarsson, General Manager of 

the AECA in Moscow, for providing the 

below article. 

Of the 27 key services provided by the 

American Embassy Community 

Association (AECA) in Moscow, Russia, 

the cafeteria continues to be the biggest 

challenge. There are valid reasons for this. 

One cafeteria can hardly cater to all the 

needs and preferences of our large 

membership. One person wants something 

prepared in a certain manner, while 

another wants it prepared differently. 

There is endless debate over what should 

be prepared, how it 

should be prepared, if 

cheaper options should 

be available, and so 

on. 

How can we 

convince our members 

that we are doing 

things right? How can 

we offer the best and be the best we can? 

Over the years AECA has developed 

several techniques that not only help us 

improve our operation, but show members 

that we are running a quality operation 

with highly skilled professionals. 

The starting point is the general 

cafeteria survey that we conduct twice per 

year – an extensive survey in the fall and 

an abbreviated version in early spring. We 

also have a suggestion box in the cafeteria 

at all times. The most frequently received 

comments in the surveys relate to our 

selection, quality, cooking methods, and, 

of course, the prices. The surveys help us 

monitor the changing preferences of our 

members, and equally importantly show 

our members that we are listening to them. 

Apart from the general surveys, we also 

use specific surveys such as: 

“Create Your Own Menu” - This 

survey lists the most popular meals with 

additional space where members can add 

personal choices. Members rate the meals 

in order of preference and provide 

comments on how they would like the 

meals prepared. Combining this 

information with historical sales figures, 

through statistical 

analysis we determine 

how often a particular 

meal should rotate 

though the menu. 

“Create Your 

Own Meal” - We ask 

members to donate 

favorite recipes, using 

categories such as 

Soup of the Week, Favorite Salads, and 

Traditional American, Oriental, Mexican, 

and Russian meals. We serve the meal 

several times, and if sales results and 

feedback are positive, it becomes a part of 

the regular menu. This is a high-profile 

survey, with special flyers containing the 

winning recipes and photos of the donator. 

Members providing winning recipes 

receive a free meal. We have received 

many good recipes this way, and it has 

increased the transparency of our 

processes. 

THE CAFETERIA 

CHALLENGE
Special Interest Surveys - These 

surveys are used to encourage feedback on 

specific items in our menu such as 

vegetarian meals, sandwiches, and “madeto-order” options. 

Surveys alone are not sufficient; we 

also need to keep our customers informed 

by publishing the results, and taking action 

on them. People need to see changes 

frequently. We have noticed that the more 

often we make changes, the more satisfied 

our customers are. Changes can come in 

almost anything - the menu 

selection, cooking methods, 

furniture and equipment 

locations, and special theme 

nights. In Moscow, such things 

are rotated every two years, as a 

one-year cycle has proven too 

short and involved too much 

repetition. 

Conducting surveys, performing 

statistical analysis, and making changes 

will not always keep members happy. In 

2003, we took the extra step of inviting a 

respected independent consultant from the 

U.S. to meet with customers, staff, and 

management. After researching over 30 

consulting firms, we selected Ron Yudd, 

whom some of you may remember from 

the last CR conference. 

One week prior to Ron’s arrival, we 

distributed questionnaires and promotional 

flyers to Embassy apartments and hung 

large posters in all Embassy buildings. 

The results were immediately evident. 

Even before Ron arrived, we noticed that 

many members’ attitudes toward the 

cafeteria improved based on their 

expectations of change. Additionally, we 

specifically invited the cafeteria’s greatest 

critics to meet with Ron, so that no one 

could argue that they were not a part of the 

project. At the end of the visit, Ron gave a 

presentation on his findings at an open 

meeting and answered questions. 

Upon his departure, Ron gave us 20 

recommendations to implement during the 

next two weeks. Then several days later, 

we received from him a 17-page report 

addressing some 250 points of interest with 

his recommendations. We call this report 

our “One-Year Cafeteria Improvement 

Plan.” The report listed month-by-month 

completion milestones, the name of the 

person responsible, and a status form for 

tracking progress. Less than a month after 

Ron’s departure, the customer-satisfaction 

rating of our cafeteria had 

clearly improved, and we 

continue to hear more positive 

comments than ever. 

Running a cafeteria can be a 

big challenge for any employee 

association; but with a customer 

service mindset, innovative 

ideas, and a motivated staff, success, and 

indeed customer satisfaction, is achievable. 

While most associations cannot afford 

to hire a consultant from the US, this 

article provides a good blueprint for those 

who wish to improve food service 

operations. For additional guidance 

regarding cafeteria operations please 

contact the CR Operations Team at 

foodandfun@state.gov. 

 

The Office of Commissary and 

Recreation Affairs (CR) would like to take 

time out to thank all those associations 

who have remitted the 2003 annual 

assessment fee. It is greatly appreciated! 

 That said, there still remains a small 

portion of associations who have yet to 

remit payment. If you have not received a 

confirmation acknowledging receipt of 

your payment, please contact the CR 

Accounting Team - foodandfun@state.gov. 

We look forward to hearing from you! 

“We have noticed 

that the more 

often we make 

changes, the 

more satisfied our 

customers are.”
Increase Profits 

by 

 Reducing Costs 

Most every employee association 

would benefit from cost reduction. To 

develop a successful strategy to reduce 

costs, association management must look 

at each cost currently incurred by the 

association and ask the question, “What 

specific ways can this organization reduce 

costs?” Some potential cost-cutting areas 

include: 

 Inventory costs (transportation, cost of 

inventory, and loss or spoilage) 

 Personnel costs (man-hours used in 

handling inventory, stocking shelves, 

cashiering, bookkeeping, cleaning, 

technological maintenance, and 

marketing) 

 Miscellaneous costs (bank fees, check 

cashing fees, exchange gains and losses 

when working with various currencies) 

 Customer service and marketing costs 

 Technology costs 

Management must identify specific 

means of cost reduction. Specific means 

of cost reduction should be broken down 

into long or short-term objectives. In the 

area of inventory for example, a long-term 

objective would be to reduce product 

spoilage. The short-term goals involved in 

this long-term objective may include 

purchasing less, moving to a just-in-time 

(JIT) inventory system (the association 

purchases goods “just in time,” as they run 

out rather than keeping a stockroom full of 

inventory), and progressively marking 

products down several months before their 

expiration date in order to move stock. 

Think of it as a triangle: the organization’s 

strategy (reducing costs) at the large 

bottom, objectives in the middle 

(purchasing less, JIT inventory, cutting 

prices on products before they expire), and 

day-to-day goals in the small tip of the 

triangle (keep the next order under X 

dollars, pull near-expired goods once a 

week, etc.). 

With some fiscal discipline, 

management can cut costs, increase profits, 

and make better use of the association’s 

money for the good of the membership and 

community. 

The above article was written by CR 

Operations Officer Christy Grimste. 

 Frequently 

 Asked 

 Questions 

Each month, we receive many different 

questions from association managers, post 

management, Boards of Directors and 

sometimes members about employee 

association operations. Not every question 

is as unique as one might think. In fact, 

many of you have the same concerns, 

comments and/or questions. We thought 

we would share some of those with you 

along with our guidance. 

Q: Can FSNs purchase duty-free goods? 

Employee association members must have 

duty-free privileges to purchase packaged

duty-free goods, but when a good is no 

longer packaged, rather it is open and 

consumed directly on site; even those 

lacking duty-free privileges may have 

access. As such, Foreign Service nationals 

(FSNs) may purchase “open” duty-free 

goods, provided the goods are sold 

separately in single serving for 

consumption on the premises. For 

FAQs
2004 REPORTING DEADLINES

May 1 

 Association Prepared Financial 

Statements (Jan. - Dec. 2003) 

 Audit Report (CY01) with Auditor 

Prepared Financial Statements and 

Auditor's Management Letter 

 Update Post Profiles 

June 1 

 Compliance Certification 

August 15

 Association Prepared Financial 

Statements (Jan. - June 2004) 

November 1 

 Assessment Payment – Based on 

Calendar Year 2003 Gross Revenue

example, open alcoholic beverages sold at 

a happy hour or hot-dogs sold at a BBQ. 

Or, in an association’s commissary or 

snack bar, one individually wrapped candy 

bar could be sold as an open duty-free 

good, but not a package of individually 

wrapped candy bars. We should 

emphasize that these guidelines should be 

strictly adhered to so that the mission’s 

duty-free privileges are not jeopardized. 

Q: Can the spouse of a Board member 

serve as the Association manager or 

bookkeeper? It is not recommend. Even 

where no direct supervision is involved, 

there may still be concern how these two 

roles interact. Besides being a potential 

internal control issue, this is a conflict of 

interest. One of the functions of the board 

is to collectively make decisions regarding 

the manager and bookkeeper in terms of 

pay and compensation, disciplinary 

actions, and performance reviews. 

Q: Should we charge our members 

refundable deposits or nonrefundable fees? 

Refundable deposits are generally 

recommended for newly establishing 

associations or those that need some 

additional working capital. Nonrefundable fees are typically in place as a 

source of ongoing income and are typically 

tied to the use of specific 

services/facilities/activities. Fees may be 

structured in several different ways: 1) 

one fee for the entire tour, 2) a pay-as-yougo fee, or 3) an annual or monthly fee. 

The first raises the question of what to do 

when someone extends or shortens his/her 

tour, while the second option can be very 

labor intensive. The third option may be 

the best compromise. However, there is no 

one-size-fits-all for employee associations 

when determining a deposit and/or fee 

structure. You should take into 

consideration such things as the 

association’s financial health, number of 

employees, number and types of services, 

location of facilities, and whether goods and 

services available on the local market

Do you have a question you think should 

be included in our next FAQ’s? Email 

Assistant CRonicle Editor Christy Grimste 

with your suggestions at 

foodandfun@state.gov. 

Managing an employee association for 

the first time can be a daunting experience, 

to say the least. We’ve collected tips and 

helpful hints from seasoned managers 

around the world about things they wish 

they had known when they started 
managing their Association and developed 

a “Manager’s Checklist.” Below are a few 

key points, but the entire list is available 

on our internet website 

(www.state.gov/m/a/c8225.htm) under the 

Management Resources page, or by simply 

contacting us and requesting it. 

 Keep abreast of annual reporting 

requirements – know what is due and 

when (you can find this list on our 

website and on the next page of this 

newsletter). Find out which 

requirements you will be responsible 

for; some boards handle all 

requirements themselves, while others 

task requirements to the general 

manager. 

Remember that your customers will 

expect American standards of customer 

service and work with your staff to 

achieve this high standard. 

Read the Board of Directors 

Handbook, available from our internet 

and intranet sites. Make sure each of 

the members of your board has a copy 

as well. 

 Make sure a board member is 

performing spot-checks of the 

association’s cash and inventory at 

least once a month. If there are no 

internal controls in place, the general 

manager will be the first person to be 

blamed if something goes missing. 

Read the quarterly newsletter, “The 

CRonicle.” The newsletter provides a 

wealth of information. Archive issues 

can be found on our internet site. 

Take your pricing structure seriously 

and do not lower prices unless you are 

certain the association can handle it 

financially. Pressure from members or 

hopes that lowering prices will draw 

more customers (which almost never 

happens!) are NOT good reasons to 

lower prices. 

 Maintain an organized central filing 

system. Guidelines can be found on 

our website in the “Rules and 

Regulations” page under collective 

cable 01-008 – Establishment of 

Central Files and Retention of Files. 

Familiarize yourself with the 

association’s operating documents (i.e., 

charter, bylaws, and license 

agreement), Post Profiles, employee 

contracts / positions descriptions,

membership list, budget, financial 

statements, and insurance policy. 

Familiarize yourself with 6 FAM 500 – 

the section of the Foreign Affairs 

Manual on employee association 

operations. 

Finally, if you don’t know something, 

don’t be afraid to ask questions of your 

board or of CR. We, like your board, want 

the association to succeed. The CR staff 

can always be reached by phone (1-202-

663-1330), fax (1-202-663-1329), or email 

(foodandfun@state.gov). 

The above article was written by CR 

Operations Officer Christy Grimste. 

 

HAPPY 

 ST. PATRICKS 

 DAY!! 

The next issue of the CRonicle 

will be published in April/May 

2004.