FINANCIAL/FOOD COST/PLATE COST/BID VS. QUOTE
TO BID OR NOT TO BID ARE YOU GOING TO BUY IT? HOW MUCH ARE YOU GOING TO SPEND? HOW OFTEN ARE YOU GOING TO BUY IT? IS IT FEASIBLE AND COST EFFECTIVE TO HAVE A FIXED PRICE?
CNP REVENUE REIMBURSEMENT (FREE, REDUCED, & PAID STUDENTS) ADULT MEAL SALES A LA CARTE EXTRA MEALS/COMPONENTS CATERING SPECIAL SCHOOL FUNCTIONS
CNP REVENUE COMMODITIES SUBSIDIES INTEREST BEARING BANK ACCOUNTS REBATES CONTRIBUTIONS
NON-PROGRAM ADULTS MEALS SERVED TO ADULTS ARE NEITHER ELIGIBLE UNDER THE AUTHORIZING LEGISLATION FOR THE SCHOOL LUNCH & BREAKFAST PROGRAMS NOR DO THEY EARN COMMODITY ASSISTANCE. THE SCHOOL FOOD AUTHORITY MUST ENSURE THAT ALL REVENUE EARNED BY THE CNP DOES NOT SUBSIDIZE PROGRAM MEAL SERVED TO ADULTS.
ADULT MEAL PRICE PRICE OF FULL PAID CHILD MEAL + FEDERAL REIMBURSEMENT + VALUE OF COMMODITIES
ADULT MEAL PRICE = = $3.48 NON-PROGRAM ADULT PRICE >= $3.48 BASED ON REIMBURSEMENT RATES
INTERNAL CONTROL EMPLOYEE THEFT TAKE A DAILY INVENTORY OF PRE-PACKAGED ITEMS ONE PERSON TO A CASH DRAWER KEEP THE CASH DRAWER LOCKED COUNT MONEY AFTER EACH MEAL DEPOSIT MONEY DAILY
INVENTORY AT LEAST MONTHLY FOR EVERY SITE COUNT EVERY ITEM DIRECTORS SHOULD REVIEW EACH SITES INVENTORY WHY IS IT IMPORTANT? FINANCIAL CONTROLS THEFT ORDERING
CNP EXPENDITURES SALARY/WAGES FRINGE BENEFITS PURCHASED SERVICES OPERATING, MAINTENANCE, & ENERGY FOOD NON-FOOD SUPPLIES CAPITAL EQUIPMENT & SUPPLIES
CALCULATING FOOD COST PERCENTAGE THE PERCENTAGE OF TOTAL EXPENDITURES SPENT ON FOOD. ALABAMA STANDARD 30-34%
A LA CARTE PRICE FACTORS To get desired Food Cost of: Multiply Actual Food Cost by: 33%3.0 35% %2.5 45% %2.0 Note: A higher food cost should be offset by lower labor requirement.
CALCULATING LABOR COST PERCENTAGE THE PERCENTAGE OF TOTAL EXPENDITURES SPENT ON LABOR. ALABAMA STANDARD IS 46-50%
CNP “MONEY” PIE Labor 46-50% Food 30-34% Other 20-28%
FOOD COST Daron Bell, RD, LD Nutritionist
AVERAGE REVENUE PER LUNCH Source: Dr. Julie Boettger, School City of Hammond, Indiana
REVENUE COMPARISONS – SCHOOL A AND SCHOOL B School A Paying lunch $2.35 Adult lunch $2.85 Certified Local funds $0.04 School B Paying lunch $2.25 Adult lunch $3.00 Certified No local funds
AVERAGE REVENUE PER LUNCH – SCHOOL A Source: Dr. Julie Boettger, School City of Hammond, Indiana
AVERAGE REVENUE PER LUNCH – SCHOOL A Source: Dr. Julie Boettger, School City of Hammond, Indiana
AVERAGE REVENUE PER LUNCH – SCHOOL B Source: Dr. Julie Boettger, School City of Hammond, Indiana
AVERAGE REVENUE PER LUNCH – SCHOOL B Source: Dr. Julie Boettger, School City of Hammond, Indiana
AVERAGE DAILY FOOD BUDGET 40% Food Cost School A - $3.04 X.40 = $1.21 School B - $3.12 X.40 = $1.24
TYPICAL FOOD COST FOR LUNCH Hamburger on WW Bun $.39 Roasted potato wedges$.10 Lettuce and Tomato slices $.15 Banana$.18 Milk $.22 $1.04
TYPICAL FOOD COST FOR LUNCH Chicken Nuggets $.30 Whole Grain Roll$.12 Broccoli (1/2 c) $.19 Butternut Squash (1/4 c)$.15 Apple Wedges (1/2 c) $.12 Milk $.22 $1.10
TYPICAL FOOD COST FOR LUNCH Pizza Sticks $.43 Marinara sauce (1/4 c)$.08 Garden salad$.25 Roasted baby carrots (1/4 c)$.10 Pear wedges$.18 Milk $.22 $1.26
TYPICAL FOOD COST FOR LUNCH Pulled Pork Sandwich $.59 Mexicali corn$.17 Seasoned black beans$.21 Applesauce$.14 Milk $.22 $1.33
TYPICAL FOOD COST FOR LUNCH Macaroni and Cheese* $.69 Seasoned green beans$.14 Sweet potato wedges$.26 Pineapple tidbits$.20 Milk $.22 $1.51 *USDA Foods processing
AVERAGE WEEKLY FOOD COST FOR LUNCH - EXAMPLE Day 1$1.04 Day 2$1.10 Day 3$1.26 Day 4$1.33 Day 5$1.51 Total$6.24 Average$1.24
SCHOOL A VERSUS SCHOOL B School A = $1.21 School B =$1.24 How much additional money does School A need for the year to pay for food?
ADDITIONAL REVENUE NEEDED X X = $ meals/day 180 school days $23,490 With a $0.03 difference from school A to average food cost per meal what would school A have to contribute for one year to be cost neutral.
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