financial/food cost/plate cost/bid vs. quote. to bid or not to bid are you going to buy it? how much...

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

•3.00 + .28 +.2025 = 3.4825= $3.48

•NON-PROGRAM ADULT PRICE >= $3.48

•BASED ON 2013-2014 REIMBURSEMENT RATES

INTERNAL CONTROLEMPLOYEE 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% 2.85

40% 2.5

45% 2.22

50% 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 COSTDaron Bell, RD, LD

Nutritionistdbell1@alsde.edu

334-353-1687

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 $ .39Roasted potato wedges $ .10Lettuce and Tomato slices $ .15Banana $ .18Milk $ .22

$1.04

TYPICAL FOOD COST FOR LUNCH

Chicken Nuggets $ .30Whole Grain Roll $ .12Broccoli (1/2 c) $ .19Butternut Squash (1/4 c) $ .15Apple Wedges (1/2 c) $ .12 Milk

$ .22

$1.10

TYPICAL FOOD COST FOR LUNCH

Pizza Sticks $ .43Marinara sauce (1/4 c)

$ .08Garden salad $ .25Roasted baby carrots (1/4 c) $ .10Pear wedges $ .18Milk

$ .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 $ .14Sweet potato wedges$ .26

Pineapple tidbits$ .20

Milk $ .22

$1.51

*USDA Foods processing

AVERAGE WEEKLY FOOD COST FOR LUNCH - EXAMPLE

Day 1 $1.04Day 2 $1.10Day 3 $1.26Day 4 $1.33Day 5 $1.51Total $6.24Average $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 =

$.03 4350 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.

ONLINE ORDERING SYSTEM

•The website has changed •How you complete/validate an order has not changed.

•If you have questions contact the food distribution section at

334-242-8237

QUESTIONS?