1. Financial Management Revenue Per Meal and Standardizing
Team Up
June 10, 2016

2. School City of Hammond
Julie Boettger, Director Food and Nutrition Services
14,000 enrollment, 22 schools (7 secondary, 15 elem)
80% Free/reduced
CEP in elementary schools
After-school snack, Supper, Summer Food Service
130 staff

3. Objectives
Introduce calculation for determining average revenue per meal
Explain how average revenue per meal is useful for planning food cost
Explain what standardizing an operation means
Explain how standardizing operation helps to control costs

4. Determining Revenue for Breakfast
RED-PRICE
FREE
$2.00
$ 1.69
$ 1.66
$ 1.99
$1.66
$ .29
$ .29
TOTALS
N/A
Local Funds
1.69
1.36
$1.99
.29
Federal Reimbrsmt
$ 2.00
$ .00
$ .00
$ 0.00
Cash Sales
Adult
(8)
Severe
Need
(7)
Reg.
(6)
(5)
(4)
Sec.
Paying
Student
(3)
Elem.
Paying Student (2)
Source
(1)

5. Example of Average Revenue for a Breakfast
$1,770,904 (Total Revenue) ÷ 1,004,591 (Number Served) = $ (round down) = $1.76
AVERAGE REVENUE
$1,770,904.40
1,004,591
TOTALS
0.00
$ 2.00
Adults
1,692,471.12
$ 1.99
850,488
Free
40,732.38
$ 1.69
24,102
Reduced-Price
$ 37,700.90
$ .29
130,001
Paid
(=) REVENUE BY CATEGORY
(4)
(X) REVENUE BY CATEGORY
(3)
AVERAGE NUMBER SERVED
(2)
CATEGORY
(1)

6. Multiply Average Revenue per Breakfast by
Multiply Average Revenue per Breakfast by .40 (40%) to determine amount for food cost. $ $ .70

7. Breakfast Components
Milk $.23
Grain .27
Fruit .20
Total $.90

8. Example of How to Determine Revenue for Lunch
$ 3.50
$ 3.38
$ 2.60
$ .60
TOTALS
N/A
Local Funds
.06
Certified ($.06)
.23*
Entitlement Commodity Value
2.69
$ 3.09
.31
Federal Reimbsmnt
$ .40
$2.00
$ 0.00
Cash Sales
ADULT LUNCH
(6)
REDCD-PRICE
(5)
FREE (4)
SEC.
PAYING
(3)
ELEM. PAYING
(2)
SOURCE
(1)

9. Example of Average Revenue for a Lunch (Elementary)
$3,249, (Total Revenue) ÷ 1,063,689 (Number Served) = $ or $3.05
AVERAGE REVENUE FOR A LUNCH
$3,249,283.92
1,063,689
TOTALS
$ 3.50
Adults
3,174,610.92
$ 3.38
939,234
Free
0.00
Reduced-Price
$74,673.00
$ 0.60
124,455
Paid
(=) TOTAL REVENUE BY CATEGORY (4)
(X) REVENUE BY CATEGORY
(3)
AVERAGE NUMBER SERVED (2)
CATEGORY
(1)

10. Multiply Average Revenue per Elementary Lunch by
Multiply Average Revenue per Elementary Lunch by .40 (40%) to determine amount for food cost. $ $1.22

11. Lunch Components Entrée $ .50 Grain (2) .16 Vegetable .10
Fruit
Milk
Condiment .06
Total $1.35

12. Example of Average Revenue for a Lunch (Secondary)
$2,878, (Total Revenue) ÷ 876,256
(Number Served) = $ or $3.28
AVERAGE REVENUE FOR A LUNCH
$2,878,900.70
876,256
TOTALS
$ 3.50
Adults
2,392,495.82
$ 3.38
707,839
Free
210,256.28
62,206
Reduced-Price
$276,148.60
$ 2.60
106,211
Paid
(=) TOTAL REVENUE BY CATEGORY (4)
(X) REVENUE BY CATEGORY
(3)
AVERAGE NUMBER SERVED (2)
CATEGORY
(1)

13. Multiply Average Revenue per Secondary Lunch by
Multiply Average Revenue per Secondary Lunch by .40 (40%) to determine amount for food cost. $ $1.31

14. Standardized Operation
Cycle Menus – published for the year
Control Items (SKUs) purchased
Standardize Recipes
Standardize portioning/packaging tools
Preprinted production records (components, servings/purchase unit, serving size or tool
Establish food cost targets (40%)
Establish selling price markups (2.5 x cost)
Computerize – it forces standardization

15. Benefits of Standardizing
Controls costs
Controls inventory
Reduces waste
Improves forecasting
Improves pricing from vendors
Makes training of staff easier and improves confidence
Improves quality because staff become experienced at producing the items