Can you give some examples of railways with such poor catering?
Its not my intention to name and shame on a public forum, especially when many members on here have personal involvement with preserved railways. I think its an assessment anyone can make when you compare the quality of food at a PR to that of a nearby local garden centre or successful café. All too often I find the food offering at a railway very much akin to a local greasy spoon, but with very inflated prices. For a captive audience who need a quick snack that might work, but theres a huge market out there for high quality food in interesting locations. With the right approach and a good menu, theres no reason why a preserved railway café couldn't compete with a garden centre, many of which are treated as a cafe destination in themselves. Many railways are blessed with a rent free, central(ish) location in towns. The buildings themselves are often beautiful and the railway activity interesting. Its a crying shame this isnt put to better use.
Catering is a hard place to make money. Ask anyone in the hospitality trade. Staff and power costs a big issue.
Frankly, running a railway is a hard place to make money. Just because something is hard doesn't mean it can't be done. A friend runs a small chain of cafés, draws an income from them and employs around 50 people, whilst having to pay rent for the premises. Given that many PRs benefit from owning their buildings, they already have a strong starting point in this regard and really shouldn't shy away from capitalising on their strengths.