Tatia Prieto, Ed.D., MBA, PMP Program Assessment CSNA Conference June 13, 2018 Donna Wittrock, M.A., SNS Tatia Prieto, Ed.D., MBA, PMP

Class Outline How We Came to Embrace Data Key Performance Indicators (KPIs), Best Practices, & Benchmarks Practical Application Resources

How We Came to Embrace Data

Key Performance Indicators, Best Practices, and Benchmarks

What’s the Difference? KPIs – measuring the important things in your program Best Practices – industry recommendations Benchmarking – comparing yourself over time or to other programs

Most Common KPIs Meal Counts and Participation Financial Meal Equivalents (MEQ or ME) Average Daily Participation (ADP) Financial Revenue Expenditures Operating Ratios Productivity and Labor Meals Per Labor Hour (MPLH)

Some Basics - ME Meal Equivalents In Colorado for 2017-18: 1 lunch = 1 ME 3 breakfasts = 2 ME 3 snacks = 1 ME $3.57 = 1 ME

Some Basics - ME Why Should I Calculate MEs? 200 lunches 100 breakfasts 150 snacks $100 in vending sales 150 lunches 125 breakfasts 100 snacks $150 in adult lunches $125 in vending sales or Which school requires more labor? We need to calculate MEs to decide!

Some Basics - ME Colorado DOE makes it easy!

Hmm. Maybe liver and onions is not such a great idea… ADP

I’m a rock star this year! ADP

Where to Get Financial Data Recognize this?

How to Use Those Financial Data Revenues/Expenditures $5,545,878 / $5,123,879 = 1.08 Revenue/ME $5,545,878 / 1,428,660 = $3.88 Costs/ME $5,123,879 / 1,428,660 = $3.59 The $ data come from CDE5! The ME figure can be inferred from CDE5 – do you know how? What do you see?

Operating Ratios Costs as a percentage of revenue Instead of Rev / Exp, you can look at Costs / Revenue 100% - break even Less than 100% - more revenue than expenditures More than 100% - losing $ (Food Costs) / Revenue and (Labor Costs) / Revenue Goal is no more than 80-85% for food and labor This is a Best Practice

How to Use Those Operating Ratios The $ data come from CDE5! Costs/Revenues $5,123,879 / $5,545,878 = 92% (Food Costs) / Revenue ($2,052,430 + $439,561) / $5,545,878 = 45% (Labor Costs) / Revenue ($1,789,484 + $561,840) / $5,545,878 = 42% Food you paid for + Value of USDA food Salaries + Benefits What do you see?

MPLH – (ME)/(Labor Hours) Measure of Productivity

MPLH – Pop Quiz! Which one has higher productivity? Orange ES has an MPLH of 9.5 (on ME of 145) Blueberry Hill HS has an MPLH of 13.5 (on ME of 325) Which one has higher productivity? Which one is doing better?

MPLH Needs work!

MPLH What do you think?

Best Practices Industry Recommendations – nothing to be afraid of, we promise Keys to Excellence Best Practices SNA Defines national standards Provides framework for program review, evaluation, and improvement

Benchmarking Also nothing to be afraid of SNA Operations Report: the State of School Nutrition 2016 Benchmarks Council of the Great City Schools Performance Measurement and Benchmarking Project

Practical Application

Practical Application Lucky you! You’ve got a new superintendent. He’s been in the district all of 10 minutes and tells you he doesn’t think the kids like school food since “they stopped letting us serve pizza and fries every day.” What’s up your sleeve?

Practical Application ADP! Our ADP HUSSC Last Year This Year Silver Level Gold Level Orange ES 70% 76% 60% 75% Mullberry MS 65% 77% Blueberry Hill HS 50% 54% 45% These are Best Practices from HUSSC

Practical Application You’ve got three cafeterias in your district, each with the same staffing. One of the cafeteria managers is constantly complaining that she doesn’t have enough help. She also says that, as the biggest school, she should “obviously” have the largest staff. What’s up your sleeve?

Practical Application Cafeteria Productivity, using ME and MPLH Enrollment Breakfasts Lunches ME Labor Hours MPLH Target Range Doing Well? Orange ES 350 50 325 267 18 15 13-15 Grape ES 375 275 233 13 12-14 Lemon ES 500 40 250 207 11

Practical Application That new superintendent is just back from a conference. He’s heard that school districts can “always” save big money by outsourcing food service. He’s also worried about the rising cost of employee health care and you’ve got 50 employees in your department. You know what he’s thinking… What’s up your sleeve?

Practical Application Operating Ratios! This Year Costs / Revenue 92% (Food Costs) / Revenue 42% (Labor Costs) / Revenue 41% I’m a rock star this year! How are you doing financially? How are your labor costs doing?

Practical Application Whew! You’ve got three years of great operational data pulled together. How do things look? Let’s go year by year…

Practical Application – Year 1 # Student Breakfasts Served 200 # Student Lunches Served 600 # Adult Breakfasts Sold @ $1.50 5 # Adult Lunches Sold @ $4 10 Vending Machine Revenues $0 ME 747 Year 1 Revenue from Student Meals $1,000 Local Non-Program Revenue $48 State $150 Federal $2,000 Total Revenue $3,198 Year 1 Purchased Food and Milk $1,500 Salaries $950 Benefits $475 Equipment $0 Indirect Cost Total Expenditures $2,925 Year 1 Expenditures / Revenues 91% Revenues / ME $4.28 Expenditures / ME $3.92 Food / Revenues 47% Labor / Revenues 45% What do you see?

Practical Application – Year 1 Some things we see: Maybe there's room for growth in breakfast. There's definitely room for growth in adult meal sales. Why aren't we doing any vending sales? Shouldn't we be spending something on equipment? That new superintendent has noticed we aren't paying indirect, so guess what will happen next year… Some things we see in the KPI/BP/BM: Exp/Rev ratio is good. Rev/ME compared to Exp/ME is good. Food/Rev ratio is too high. Labor/Rev is at the edge of too high.

Practical Application – Year 2 # Student Breakfasts Served 300 # Student Lunches Served 550 # Adult Breakfasts Sold @ $1.50 20 # Adult Lunches Sold @ $4 40 Vending Machine Revenues $150 ME 845 Year 2 Revenue from Student Meals $750 Local Non-Program Revenue $340 State $175 Federal $1,900 Total Revenue $3,165 Year 2 Purchased Food and Milk $1,700 Salaries $975 Benefits $485 Equipment $175 Indirect Cost $300 Total Expenditures $3,635 Year 2 Expenditures / Revenues 115% Revenues / ME $3.74 Expenditures / ME $4.30 Food / Revenues 54% Labor / Revenues 46% What do you see?

Practical Application – Year 2 Some things we see: Breakfast sales are up – that’s good! Adult breakfast and lunch sales are up – that’s good! Student lunch sales are down. Hmm… We’re making some money from our new vending machines! Revenue from student meals is down. Hmm… We started investing in equipment – that’s good! That new superintendent is now charging for indirect. Some things we see in the KPI/BP/BM: Exp/Rev ratio is more than 100% – what does that mean? Rev/ME has dropped a lot and Exp/ME has gone up a lot. Food/Rev ratio is too high, and even worse than last year. Labor/Rev ratio has crossed the line and is now too high.

Practical Application – Year 3 # Student Breakfasts Served 350 # Student Lunches Served 610 # Adult Breakfasts Sold @ $1.50 35 # Adult Lunches Sold @ $4 60 Vending Machine Revenues $275 ME 1,002 Year 3 Revenue from Student Meals $1,025 Local Non-Program Revenue $568 State $180 Federal $2,100 Total Revenue $3,873 Year 3 Purchased Food and Milk $1,700 Salaries $1,050 Benefits $495 Equipment $175 Indirect Cost $310 Total Expenditures $3,730 Year 3 Expenditures / Revenues 96% Revenues / ME $3.86 Expenditures / ME $.72 Food / Revenues 44% Labor / Revenues 40% What do you see?

Practical Application – Year 3 Some things we see: Breakfast sales are up some more – continued progress! Adult breakfast and lunch sales are up – continued progress! Student lunch sales are the highest of all three years – that’s great! We’re making more money from our new vending machines! Revenue from student meals is way up – that’s great! We’ve continued investing in equipment – that’s good! Some things we see in the KPI/BP/BM: Exp/Rev ratio is back below 100% – you’re a rock star again! Rev/ME has increased since last year, while Exp/ME has decreased – good! Food/Rev ratio is now in the best practices range. Labor/Rev ratio is now in the best practices range.

Resources

Resources Council of the Great City Schools (2017). Managing for Results in America’s Great City Schools. https://www.cgcs.org/cms/lib/DC00001581/Centricity/ Domain/4/Managing%20for%20Results%20- %202017.pdf Rushing, K. (2017). Essential KPIs for School Nutrition Success. Hattiesburg, MS: Institute of Child Nutrition, Applied Research Division http://theicn.org/documentlibraryfiles/PDF/201703290 15554.pdf School Nutrition Association (2016). School Nutrition Operations Report: The State of School Nutrition 2016 https://schoolnutrition.org/Publications/Bookstore/ Keys to Excellence: Standards of Practice for Nutrition Integrity https://schoolnutrition.org/uploadedFiles/4_Certificati on,_Education_and_Professional_development/3_Keys _to_Excellence/Keys-to-Excellence-Standards.pdf

Resources Lots of Good Colorado Stuff: https://www.cde.state.co.us/nutrition/fianancial trainingresources Colorado Meal Equivalent Tool: http://www.cde.state.co.us/nutrition/financialnp rmealequivalenttool Colorado MPLH Reference: https://www.cde.state.co.us/nutrition/mealsperl aborhour

Questions?

Don’t be afraid to crunch the numbers! Wrapping Up KPIs, Best Practices, and Benchmarking can help you: find the problems; point the way to how to improve; and prove your awesomeness. Don’t be afraid to crunch the numbers!

Thank you! Donna Wittrock, M.A., SNS Donna@PrismaticServices.com Tatia Prieto, Ed.D., MBA, PMP Tatia@PrismaticServices.com 704.438.9929