School Meal ProgramsHow do we pay for them? Alaska Child Nutrition Services
The Purpose of the National School Lunch Program • “…to safeguard the health and well-being of the Nation’s children…” • To ensure that children are ready to learn
Assess the Financial Health of your Food Service • Enrollment by category – free, reduced, paid • Meal prices • Serving days • Contract days – • wages, hours, benefits Monthly Analysis of profit/loss
Analyze – Ask questions • How much revenue from federal funding? • Increasing? Decreasing? • Enrollment changes • Reduced participation • MARKET your meals!
Revenues Federal Sources • Payments for breakfast and lunch meals • Federal cash reimbursements for snacks served in certain after school care programs • Value of donated commodities • Funds from other federal programs – like the fresh fruit and vegetable program
Analyze – Ask questions • What percentage spent on food? • Purchasing- bids, coops • Economies of scale • Correct Portion sizes • Waste? Menu options
Analyze – Ask questions • What percentage spent on labor? • Assess Productivity • equipment – old, broken • disposables vs. washables • timing of meal periods and preparation • menu – convenience vs. scratch • involve employees in problem solving • training – resources
Labor Cost • Hire part-time & reduce benefits • Are meals per man-hour at optimum level? • Strive for work simplification – • Share ideas • Ready prepared or scratch? • Excessive break time
Tools for Management • DAILY Production Records - monitor planned vs. actuals • Portion control • Pre-cost - post cost - leftovers? waste? • Menu analysis – good or yuk! • Required by reg.
Tools for Management • Inventory • Menu planning + inventory • First in- first out • Reduces loss • Maximize limited storage • Use while best quality – more acceptable
Reduce Food Costs • Plan less expensive menus • Use offer vs. Serve option • Compare sources - share shipping • Involve all employees • Check pricing and costs monthly • Evaluate substitutions • Use USDA commodity foods • Reduce waste • Don’t over-serve
Management by menu Planning, purchasing, production Serving & clean up Student participation - Likes & dislikes Use commodities whenever possible Portion control & standardized recipes Purchase by bid or request for prices Verify invoicing at the bid price Merchandise the menu with students Serve GOOD food with eye appeal
Eliminate losses due to theft • Locate cashier at exit • Train staff to observe • Don’t cash checks • Don’t allow “leftovers” to go home • Maintain low inventory if possible • Date products as delivered • Keep storeroom locked- limit keys • INVENTORY
Ways to Increase Revenue • #1 Increase participation • What does your customer want • Market to parents, teachers, community and students • Plan and adjust menus for quality • Improve staff attitudes – Customer service! • Keep an eye on changes in eligibility
Ways to Increase Revenue • #2 Start a Breakfast Program • Pre-cost menus – revenue • Survey for need • Make it EASY to prepare and eat • Taste test with staff and kids • Take the breakfast to the customer
Ways to Increase Revenue • #3 Raise Prices • Are they too low? • Can you justify an increase? • Will you lose customers? • What is your competition?
Food Service Management Companies (FSMC) • Plan ahead! • Contact Child Nutrition Programs for information early in the process • Good Option or NOT – get all the facts
Financial Management Training Opportunities for School Food Service • Child Nutrition Services • Web resources • On-site training • National Food Service Management Institute