School Meal Programs How 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 pricesServing daysContract days – wages, hours, benefits

Monthly Analysis of profit/loss

Analyze – Ask questions

How much revenue from federal funding?Increasing? Decreasing?

Enrollment changesReduced participationMARKET your meals!

Revenues

Federal SourcesPayments for breakfast and lunch mealsFederal cash reimbursements for snacks

served in certain after school care programs

Value of donated commoditiesFunds from other federal programs – like

the fresh fruit and vegetable program

Analyze – Ask questions

What percentage spent on food?Purchasing- bids, coopsEconomies of scaleCorrect 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. actualsPortion controlPre-cost - post cost - leftovers? waste?Menu analysis – good or yuk!Required by reg.

Tools for Management

InventoryMenu planning + inventory First in- first out

Reduces loss Maximize limited storage Use while best quality – more

acceptable

Reduce Food Costs

Plan less expensive menusUse offer vs. Serve optionCompare sources - share shippingInvolve all employees Check pricing and costs monthlyEvaluate substitutions Use USDA commodity foods Reduce wasteDon’t over-serve

Management by menu

Planning, purchasing, productionServing & clean upStudent participation - Likes & dislikesUse commodities whenever possiblePortion control & standardized recipesPurchase by bid or request for prices Verify invoicing at the bid price Merchandise the menu with studentsServe GOOD food with eye appeal

Eliminate losses due to theft

Locate cashier at exitTrain staff to observeDon’t cash checksDon’t allow “leftovers” to go homeMaintain low inventory if possibleDate products as deliveredKeep storeroom locked- limit keysINVENTORY

Ways to Increase Revenue

#1 Increase participationWhat does your customer wantMarket to parents, teachers, community

and studentsPlan and adjust menus for qualityImprove staff attitudes – Customer

service!Keep an eye on changes in eligibility

Ways to Increase Revenue

#2 Start a Breakfast ProgramPre-cost menus – revenueSurvey for needMake it EASY to prepare and eatTaste test with staff and kidsTake 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 ServicesWeb resourcesOn-site training

National Food Service Management Institute

Thank you!