European Stars and Stripes (Newspaper) - September 26, 1977, Darmstadt, Hesse                                Monday september 26, 1977 the stars and stripes Page 9 a by John Hart Washington Bureau chief Washington is the new Boss of the army and air Force Exchange serv ice cafes says too Marfy people know too Little about what makes his Organiza Tion tick. Air Force maj. Gen. Bobby Presley in an interview this week said there s simply not enough understanding among our people particularly at the leadership level As to what cafes  on May 1, Presley took command of cafes and its worldwide operating Chain of 15,000 outlets which include retail exchanges new Boss says Many people know too Little about the organization stores food stores service stations and movie Heaters. Some 52,000 cafes employees serve More than 6.5 million men women and children using the facilities. Presley a former assistant comptroller of the air Force succeeded army maj. Gen. Cecil w. Hospelhorn who headed the Exchange operation for four years and then retired from the service. Many people shopping at the Exchange stores think cafes is a commercial Busi Ness according to Presley. He said for example that there is a report that shows 16 per cent of the shoppers in Europe have that impression. Presley considers that percentage very  Presley wants to change that perception and wants the shoppers to know More about How cafes operates. I have made it my personal goal to better explain our Story at command Levels so that the word can eventually work its Way Down. We simply have to keep on working at educating our people about cafes Presley said. The main cafes office is not a profit making corporate Headquarters in the usual business sense Presley said firmly. Is col thursday night bar business at the International club would do Many military clubs proud even on weekends. 14-nation membership shape pm club is always jumping Nyji Colonna staff writer shape Belgium is Bingo prizes include cars and All expense paid trips to places like Athens Madrid and London. Disco night is every night and live shows Are brought in almost every weekend. In a period when military clubs Are suf Fering from Low income and higher costs the International club at shape he is surviving and doing quite Well thank you. Army . Tony Capobianco the club manager at this All ranks enlisted club is one Happy Fella. I be been in the club business for 12 years and this is the Best club i be had. I have More Freedom to run my club the Way i see fit for the satisfaction of the troops than i be Ever had at an army club he said. The reason it s a club patronized by military Folk of 14 nations. It s a nato club governed by regulations that differ from those imposed on the army and air Force clubs in Europe. With More than 1,300 members in Allen listed grades the International club Here brings in More than $100,000 a month according to Capobianco who has run i since May. The big difference Between running this club and other clubs i be seen is that Here the manager really does run the club. He is responsible for what happens. It is More like a civilian operation. And even More important is that if the club does t do Well it s the manager s fault. I be seen a lot of managers really get away with murder. They can goof off and still survive in a lot of army clubs. Here you can t do  Capobianco feels he is running the club for the people. It s their club. We should run All clubs like that. Find out what the people want and then give it to  he said the club is designed for the lower ranks with membership costing just Over $1 a month. There is another club open to e5s and above but they May join the International club for about $2.75 a month. We have a lot of e5s and 6s on our membership roles he said. On weekends the club which features a restaurant and three bars including a Stag bar that opens at 10 30 . Is packed. During the week the crowds Are not much smaller. We have Happy hour every night except wednesday we try to have shows every weekend and membership nights once a month with special  an English pub lounge with a piano bar is open on weekends Only but is available during the week for private gatherings. The menu includes Steak and lobster and special ethnic and cultural cuisine along with what Capobianco Calls the Best poor boy Sandwich around. We Aiso noid Small Pool and Dart tournaments with first place prizes of about $ 15or  the club accepts payments in belgian francs Only but has a cashier s Cage that Sells francs and accepts All currencies. Capobianco said other advantages his club has Over other army clubs is that he can Book bands directly instead of going through the army and he also buys records for his disco directly through a . Firm. We get much faster service that Way he said. Another Point he made is that about 90 per cent of his 80 employees Are Only part time. That cuts Down expenses a great Deal. I think the army would do a lot better in its clubs if it would let the managers really run them. Put the manager on the spot. He has to show a profit he said. But Don t inhibit him with some of the regulations. There is not a civilian club in the world that i know of that could be successful if it operated under the present army legs he said. He said that in shape though Many of the regulations Are designed after the army rules there Are Many differences because of the numerous nationalities. The club does a booming business even during the week. You can always Tell when there s a bad movie on Capobianco said. The crowd gets Here Early. If it s a Good movie they Start coming in at about 10 30 or  the biggest problem the manager faces nightly getting the people out of the club whence close. It s Tough to Chase a couple of Hundred people out of Here at Midnight. He would like the cafes consumer to understand that in effect they Are Stock holders and that All the Money cafes makes is returned to them in one Way or another. Primarily cafes proceeds Are pumped Back to the army and the air Force As dividends in support of their morale recreation and welfare funds. Presley reported that $62 million in dividends were returned to the funds in the 1977 fiscal year. Total sales from cafes operations for the year were nearly $2.7 billion. Earnings amounted to $78.5 Mil lion. Presley noted that proceeds from net earnings also go for capital expenditures upgrading and construction of facilities. Reasonable earnings asked about the cafes Mission pres Ley said that it is the same As it always has been to provide merchandise and services and generate reasonable earnings for military morale and recreation pro  Presley said one change in cafes is the value of the Mission and the Bene fits to millions of customers. He said that in the past several years cafes has made an All out Effort to offer customers various programs with real savings As a hedge against inflation. Cafes has an obligation to do its Best for our people and i think that we re meet ing that goal Presley said. But he added at the same time cafes is also faced with the same rising costs Lor goods and labor As everybody else. None of us can afford uneconomical decisions. There Are serious economic prob lems Presley said. The cafes annual report for the 1977 fiscal year showed that the net earnings of $78.5 million were $8.6 million below the previous year. Decline explained according to the report for the military service secretaries lower than projected sales increase together with the Mark Down required to balance inventories caused the decline in net earnings. For Presley the most challenging thing ahead is to keep cafes  he said that cafes is not going to carry products that Don t sell and that the exchanges Are not going to get into a Price War with the downtown markets. Presley May appear before a congressional panel about to embark on an inquiry into the Pentagon s no appropriated funds resale activities. He acknowledged that there Are Sensi Tive issues to be discussed with respect Toa Afes. Presley said that he wants to essentially discourage the myth that cafes is something.  it s nothing in the usual business sense. The biggest Issue is that we Don t have corporate  asked about a recent general account ing office report saying that prices in the Exchange stores can be increased by 7.8 per cent Presley had this comment 1 strongly  the Gao said that with additional reve nue Aafke could return More dividends to the welfare funds and still give the Exchange patrons a saving. Presley did not agree with the Gao claim that cafes Selling prices average 23.5 per cent to 25.5 per cent less than in the commercial Market. The Best we can do is 20 per cent and still return funds to the welfare fund Presley said and still meet operating costs and capital expenditures. We re in the business of providing goods and services at the lowest practical Cost for the Well being of the military Community. 1 am confident that we will continue to do that Presley said. Vatican aide Dies Vatican City up1 monsignor Fioren of Romita under Secretary of the Vatican congregation for the clergy died of a blood clot in the brain a few Days before his 69th birthday