Transcript Financial Management

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 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
Thank you!