The Financial Sense of Breakfast

Today’s Moderator

Paula Zdanowicz, MPH Senior Program Manager

School Nutrition Foundation

Today’s Topics Participants will gain a better understanding of: how to identify data indicators to track for breakfast,

the impact and investment of different delivery

models,

what data to collect to measure effectiveness of breakfast programs, and

what variables exist and how to account for them

Today’s Panelists

Dr. Julie Boettger, PhD, RD Director of Food and Nutrition Services

School City of Hammond Director of Operations School-Link

Technologies inTEAM Associates

Jon Dickl, MBA, SNS Director of School Nutrition Knox County Public Schools

Tennessee

Today’s Panelist

Dr. Julie Boettger, PhD, RD Director of Food and Nutrition Services

School City of Hammond Director of Operations School-Link

Technologies inTEAM Associates

Overview – Assess Current Situation

Step 1 - Assess current situation

• Existing/potential support to expand breakfast among all stakeholders

• Potential growth in participation by category and grade level

• Current financial position especially food and labor cost

Preparation and Service Models

Step 2 – Explore Preparation and Service Models

• Preparation

– On-site

– Satellite

• Service

– Cafeteria

– Classroom

– Carts

List One Time and On Going Expenses

Step 3 – Additional Expenses

• Facility changes to store, prepare, and serve breakfast

• Labor to prepare and serve breakfast

• Food and supply cost for breakfast (breakfast delivered to the classroom may incur additional costs for packaging and food e.g., if offer versus serve is not implemented)

Project Additional Revenue

Step 4 – Revenue Projections

• Project anticipated revenue by category

– Reimbursement

– Meal price

• Use historical ratios or data from districts similar in free/reduced that have recently expanded breakfast program using similar service models

Foodservice Data to Collect

• Food Cost % of Revenue

• Labor Cost % of Revenue

• Daily Income (Revenue) Per Student

• Breakfast Participation % of Attendance

– By Free, Reduced, and Paid

– By Elementary, Middle, and High

• Productivity (meals per labor hour)

Non-Foodservice Data to Collect

• Daily number of tardiness

• Daily nurse visits

• Daily number of office referrals

• Daily absentee rate

• Test scores

• Survey stakeholder perceptions

Be sure to track for several months before expanding the breakfast program for validity!

School City of Hammond (IN)

• Urban district in the Chicago metro area

• Enrollment 14,000 - 80% F/R

• 22 schools – on-site preparation

• Additional programs: Fresh Fruit and Vegetable, Summer Foodservice, After School Snacks, CACFP Snacks for Pre-K, Back-Pack

Breakfast in Classroom - Hammond

Elementary • Running out of dining room space and cutting breakfast aids • Did not take time to get buy-in from teachers • Changed elementary school start time ‘13-14 to 9:15

eliminating program at this grade level Secondary • School start time 7:30 opened opportunity to add BIC at

Middle school • Teacher involvement changed bell schedule to make advisory

period first when students eat, have announcements, and other schedule interruptions e.g., meetings

• Students who arrive early can still eat in the café from the traditional menu

Breakfast in Classroom - Hammond

• O’Bannon Elementary – 92% free/reduced – Grab and Go pick up in Café and eat in classroom – Increased participation from 47% to 66% – Labor decreased by 2 percentage points – Daily Revenue Per Student increased from $3.43 to $3.80 – Highest reading scores in the district

• Scott Middle – 74% free/reduced – Grab and Go from carts; eaten in classroom – Set “cashless policy” so no cash is collected at POS – Increased participation from 15% to 55%

Today’s Panelist

Jonathan “Jon” Dickl, MBA, SNS Director of School Nutrition Knox County Public Schools

Tennessee

• 2012-2013 (Sept-March) National School Lunch Program Participation

• Overall Free Meal Category

• 2012-2013 (Sept.-March.) National School Breakfast Program

• *Overall Free Meal Category

National Statistics on NSLP and SBP Participation

3.2% 1.1%

3.4% 2.1%

*Participation in both Paid and Reduced- Price has decreased.

School Breakfast Program Participation Tracker

Data Source: USDA FNS Key Program Data Report, May 2013 1. Totals are averaged. Computations are based on monthly data from September 2011 - March 2012 and September 2012 – March 2013.

9.69 10.02

1.04 1.02 2.06 2.02

Ave

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Stu

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Par

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Pe

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1

Average Student Participation September through March

Free Reduced Paid

12.79 13.06

September 2011-March 2012 September 2012-March 2013

District Profile DISTRICT NAME Knox County School District

STATE Knoxville, Tennessee

ENROLLMENT 58,500, 85 serving sites

% OF ATTENDENCE TO ENROLLMENT 94.5%

% OF FREE/REDUCED 52.3%

% OF PARTICIPATION 62% Lunch, 26% Breakfast $26.7M Revenue, $15M NSLP, $4.5 M SBP, $3.6M AC

TYPE OF DISTRICT

Urban Suburban Rural Combined (Rural, Urban and Suburban)

TYPE OF PROGRAM

On-Site Preparation with Distribution to Other Schools On-Site Preparation without Distribution to Other Schools

PROGRAM INCLUDES

Breakfast (All Schools Traditional, 2nd Breakfast, and 18 BIC) Lunch (Traditional and Some Vending) After School Snacks and FFV Program Evening Supper (7 Sites)

KCS School Nutrition

KCS

KCS School Nutrition

KCS

2011-2012

– Anemic Growth at Lunch (5.7%)

– Breakfast

– Celebration? Participation Barriers: • Facility Constraints – Infrastructure and Points of Access

– Satellite Schools

– Rising Costs • Food, Salaries, Benefits, and Fuel

• New Meal Pattern

KCS

Concerns at the End of 2011-12 – Political Environment and Public Perception

• BIC Program at AE • Farm to School • Cultural shift

– Regulatory Compliance and Staffing to Control, Monitor, and Evaluate

– Shrinking Skilled work force

– Infrastructure Still Weak

– Diminished Profitability

Challenges

Solutions?

– Raise Meal Prices

– Reduce Costs

• Overhead

• Staffing

• Investment

– Training

– Equipment

– Other Methods for Increasing Revenue?

Solutions

Answers

– Raise Meal Prices – Equity in SLP

– Reduce Costs ??? • Overhead

• Staffing - retention

• Investment – Training

– Equipment

– Other Methods for Increasing Revenue ???

Solutions

Best Answer

• Breakfast!!!!

Solutions

Breakfast in KCS

Knox County Schools

• Breakfast in the Classroom • 2010- Lonsdale Elementary

• 2011- 4 more sites added

• 2012- 15 more sites added, 2 dropped off

• 2013 – 1 more site added, 1 dropped off

•

• 18 total, 2 more potential sites

• 2 Grab & Go, 2 second breakfast

Some People Love it!

KSC BIC

• Public Perception

• “I'm happy to pay for a pancake breakfast to get kids to school early in an economic stagnant area. Maybe they might stand a better chance of learning something that day on a full stomach and give education a chance to improve their situation.”

Some Don’t…

KCS BIC

• “Where did this moron Dickl guy come from”

• “Director of school nutrition Jon Dickl's statement was indicative of liberal thinking. He stated that producing extra breakfasts for students who can afford to pay for them doesn't cost more because the federal government reimburses the school district! Where does this head-in-the-sand bureaucrat think the federal government gets its money?”

Why BIC?

KSC BIC

• Greatest Opportunity to Impact Participation

• Can be Managed Profitably

• Labor

• Food

• Staffing / Café Impact

• It is What is Best for Students

Why BIC?

KSC BIC

• Greatest Opportunity to Impact Participation

• District-wide

• Mooreland Heights 66% F / 10% R

• Whittle Springs MS

• Sarah Moore Greene 90% F / 2% R

• Vine MS

• Norwood

• Pond Gap

• East Knox

• Northwest MS

• Beaumont

• Fulton HS

2

4

2

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a

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s

Breakfast in KCS

Knox County Schools

• Breakfast Participation

• 2010- 1 in 10

• 2011 – 1 in 8

• 2012 – 1 in 4

• 2013 – 1 in 3 ?

Why BIC?

KSC BIC

• Can be Managed Profitably

• Fixed Cost Per Plate

• Labor – Incremental Labor vs Formula

• Food – Choices / F2S

• Staffing / Café Impact

Why BIC? - SMG

KSC BIC

SY 13 Daily Reimbursement

Avg Reimb

Per Meal

Student Payments

Total Rev Per

Meal Labor Costs

Labor Cots Per

Meal

Food Costs Per

Meal Paper and CS

Fixed Cost per

plate

Total Revenue per meal

Total Cost Per

meal Net

Difference Gross

Margin Waste Net

Margin School Year

11096 528 1.89 $998.64

282 13 1.59 $21.35

938 45 0.28 $12.51

12316 586 0 $1,032.50 $1.76 $1.76 $312.45 $0.53 $0.74 $0.06 $0.15 $1.76 $1.48 $0.28 $164.87 $40.50 $124.37 $22,387.08

SY 11

6027 317 1.89 $599.53

307 16 1.59 $25.69 $4.85

400 21 0.28 $5.89 $36.84

6734 354 $631.11 $1.78 $41.69 $1.86 $252.45 $0.71 $0.74 $0.06 $0.24 $1.86 $1.75 $0.11 $37.61 0 $37.61 $6,770.29

Why BIC? - SMG

KSC BIC

• Can be Managed Profitably?

• Participation increased by 65.5%

• Reimbursement per meal declined

• Approximately $0.02 per meal

• Revenue per meal declined by $0.10

• Waste / Comp increased by $40.50

• Average of 4 additional hours per site

• Average hourly rate plus benefits approximately $15 per hour (including site managers and staff)

Why BIC? - SMG

KSC BIC

• Can be Managed Profitably!

• Annual Profitability improved by $15,616.79

• Revenue per meal drops $0.10

• Cost per meal DROPS by $0.27!

• Savings from Fixed Cost Per Plate

• Utilities / Indirect Costs / Support Services

• Fixed costs per meal declines by $.09 per meal

• Labor – Incremental Labor vs Formula

• $60 incremental costs in labor

• LC per meal actually declines $0.18

Why BIC? – Mooreland Heights

KSC BIC

SY 13 Daily Reimbursement

Avg Reimb

Per Meal

Student Payment

s

Total Rev Per

Meal Labor Costs

Labor Cots Per

Meal

Food Costs Per

Meal Paper and CS

Fixed Cost per

plate

Total Revenue per meal

Total Cost Per

meal Net

Difference Gross

Margin Waste Net

Margin School Year

4446 212 1.89 $400.14

664 32 1.59 $50.27

1571 75 0.28 $20.95

6681 318 0 $471.36 $1.48 $1.48 $134.36 $0.42 $0.74 $0.06 $0.08 $1.48 $1.30 $0.18 $56.08 $40.50 $15.58 $2,803.78

SY 11 10/1- 10/31

1744 92 1.89 $173.48

118 6 1.59 $9.87 $1.86

173 9 0.28 $2.55 $15.93

2035 107 $185.91 $1.74 $17.80 $1.86 $74.36 $0.69 $0.74 $0.06 $0.24 $1.86 $1.74 $0.12 $13.29 0 $13.29 $2,392.64

Why BIC? - SMG

KSC BIC

• Can be Managed Profitably?

• Participation increased by 297%

• Reimbursement per meal declined

• Approximately $0.26 per meal

• Revenue per meal declined by $0.38

• Waste / Comp increased by $40.50

• Average of 4 additional hours per site

• Average hourly rate plus benefits approximately $15 per hour (including site managers and staff)

Why BIC? - SMG

• Can be Managed Profitably!

• Annual Profitability still improved by $411.14

• Revenue per meal drops $0.10

• Cost per meal DROPS by $0.44!

• Savings from Fixed Cost Per Plate

• Utilities / Indirect Costs / Support Services

• Fixed costs per meal declines by $.16 per meal

• Labor – Incremental Labor vs Formula

• $60 incremental costs in labor

• LC per meal actually declines $0.27

• What does the additional hours mean for our people??? Financial Stability…

Employee Turnover

Career change

Family circumstance

Retirement

Health issues

Job abandonment

Salary advancement

Return to school

Termination

Other

• Of 657 employees, 32 have either resigned, retired, or been terminated.

• We project by the end of the school year, the employee turnover rate will be approximately 12.78% based on current data.

KCS School Nutrition

2nd Chance Breakfast

KSC BIC

• Karns HS

• Participation increased by 66%, 2nd chance breakfast serves an average of 150-160 additional breakfasts which is at least 50 greater than served during 1st breakfast

• Fulton

• BIC for 1st Breakfast, Minimal increase in participation but significant sales in ala carte

• Powell HS

• Powell HS serves 1.25 to 1.5 times the number of breakfasts second than first.

• 150 average first, 170-200 average second

Knox County School District YTD May 2013

SY13 SY12 Difference

Lunch Reimbursement

$11,017,543 $10,520,664 Increased $496,879

Breakfast Reimbursement

$4,015,868 $3,576,079 Increased $439,789

Café Inc. (non-federal)

$8,430,633 $9,273,954 Decreased $843,321

• Paid Meals down $200,781 • Equity in School Lunch Pricing (ESLP) = $0.25 @ all levels

• A la Carte down $577,003

• BREAKFAST is CRITICAL for Financial Sustainability!

Why BIC?

• It is What is Best for Students

• Attendance

• Tardiness

• Nurse Visits

• Disciplinary Action

• The 4 R’s! (Rules without Relationship Results in Rebellion)/ Socialization

• Improved Academic Performance

• Compensation

Thank You

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