the financial sense of breakfast - school nutrition...breakfast in kcs knox county schools...
TRANSCRIPT
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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Par
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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
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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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