School Meal Programs How do we pay for them?

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School Meal Programs How do we pay for them?

• Alaska Child Nutrition Services

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The Purpose of the National School Lunch Program

• to safeguard the health and well-being of the
  Nations children
• To ensure that children are ready to learn

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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

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Analyze Ask questions

• How much revenue from federal funding?
• Increasing? Decreasing?
• Enrollment changes
• Reduced participation
• MARKET your meals!

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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

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Analyze Ask questions

• What percentage spent on food?
• Purchasing- bids, coops
• Economies of scale
• Correct Portion sizes
• Waste? Menu options

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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

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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

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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.

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Tools for Management

• Inventory
• Menu planning inventory
• First in- first out
• Reduces loss
• Maximize limited storage
• Use while best quality more acceptable

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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
• Dont over-serve

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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

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Eliminate losses due to theft

• Locate cashier at exit
• Train staff to observe
• Dont cash checks
• Dont allow leftovers to go home
• Maintain low inventory if possible
• Date products as delivered
• Keep storeroom locked- limit keys
• INVENTORY

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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

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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

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Ways to Increase Revenue

• 3 Raise Prices
• Are they too low?
• Can you justify an increase?
• Will you lose customers?
• What is your competition?

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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

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Financial Management Training Opportunities for
School Food Service

• Child Nutrition Services
• Web resources
• On-site training
• National Food Service Management Institute

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Thank you!