pp back to school 2009 financial
DESCRIPTION
A State of the Deparment speech for SNS employeesTRANSCRIPT
SNS FINANCIAL REPORT
Action Plan 2009-10
04/10/23 2
HENRICO SNS 08-09 BUDGET
WE LOST A WHOPPING
$333,579.LAST YEAR…
04/10/23 3
HENRICO SNS 08-09 BUDGET
Not good news…
Our Paid Lunches were down 11.3% or 197,000 from last year resulting in $611,200 in lost revenue.
04/10/23 4
HENRICO SNS 08-09 BUDGET
Our ala carte sales were down $181,515.
04/10/23 5
HENRICO SNS 08-09 BUDGET
Our food expenses were up 7.4%, or $562,802.
04/10/23 6
HENRICO SNS 08-09 BUDGET
OUR TOTALLUNCHES WERE
DOWN1.2% = $50,387
04/10/23 7
HENRICO SNS 08-09 BUDGET
THIS YEAR WE HAVE TO PAY C&M UTILITIES AGAIN = approx.
$500,000.
04/10/23 8
HENRICO SNS 08-09 BUDGET
SO HOW ‘BOUT SOME GOOD NEWS?
04/10/23 9
HENRICO SNS 08-09 BUDGET
THERE AIN’T NONE!!!!
04/10/23 10
HENRICO SNS 08-09 BUDGET
JUST KIDDING!
04/10/23 11
HENRICO SNS 08-09 BUDGET
FREE AND REDUCED LUNCHES WERE UP 13.2%, RESULTING IN INCREASED REVENUE OF $601,097.
04/10/23 12
HENRICO SNS 08-09 BUDGET
FREE AND REDUCED BREAKFASTS WERE UP 27.1%, RESULTING IN INCREASED REVENUE OF $266,991.
04/10/23 13
HENRICO SNS 08-09 BUDGET
AND… PAID BREAKFASTS
WERE UP 3.6%, RESULTING IN INCREASED REVENUE OF $10,251.
04/10/23 14
HENRICO SNS 08-09 BUDGET
VENDING WAS UP 30.3% to $187,860.
04/10/23 15
HENRICO SNS 08-09 BUDGET
TOTAL REVENUE WAS UP AN AMAZING $1.6 MILLION !!!!
04/10/23 16
HENRICO SNS 08-09 BUDGET
SO WHAT THE HECK HAPPENED??
04/10/23 17
HENRICO SNS 08-09 BUDGET
OUR EXPENSES WERE HIGHER THAN OUR INCOME…
04/10/23 18
HENRICO SNS 08-09 BUDGET
DISCERNMENTDiscernment can be described as the ability to
find the root cause of the matter, and it relies on intuition as well as rational thought.
Discover the root cause to the issue
Problem solve
Evaluate your options
Multiply your options
FINALLY-- REFLECT
04/10/23 19
HENRICO SNS 08-09 BUDGET
SO WHAT WILL WE DO?
04/10/23 20
Objective:
To define to all SNS employees that we have and are in the 2nd year of our multi-year strategy to return SNS to financial stability by:
1) reducing operational expenses
2) further increasing revenue
04/10/23 21
Background Information
HCPS took the high schools off of the NSLP in 1981 due to major budget cuts by the Reagan administration.
Henrico’s free/reduced population was less than 20%.
HS were had been unprofitable. The HS quickly became very
profitable by adding sodas & french fries, ala carte pricing , and dropping vegetables/fruits.
04/10/23 22
Background Information
By 2006-07, the HCPS free/reduced population had grown to 40% due to a worsening economy, major increase of child obesity awareness, & the implementation of a new School Board wellness policy.
To better serve the needy child, the Superintendent recommended to the School Board to return our high schools to the NSLP for the 2007-08 school year.
04/10/23 23
Background Information
SNS estimated that this change would cost over 1 million dollars in lost sales and to implement:
a) the elimination of very profitable soda sales
b) reduced vending sales c) new costly and less popular nutrition
standards in the wellness policy d) higher food costs due to Type A lunch
requirements
04/10/23 24
Background Information
The point of sale system in the HS was different because it did not track Type A. The Elem and MS had a 10+ year-old cash register system making it necessary to change all cafeteria point of sale computers to one up-to-date system.
The upgrade cost almost $900,000.
NOTE: Other factors such as labor, equipment, etc did remain constant.
04/10/23 25
FINANCIAL IMPACT
REVENUE (in 000s)
PRE-NSLP NSLP04-05 05-06 06-07 07-08 08-09$13,612. $14,220. $14,915. $15,272.
$16,937.
Going back on the NSLP clearly did not significantly increase SNS revenue (w/o factoring in student population growth or reimbursement rate increases).
04/10/23 26
FINANCIAL IMPACT
VENDING PRE-NSLP NSLP03-04 04-05 05-06 06-07 07-08 08-09$610,495 $359,464 $343,842 $290,418 $144,194
$187,860
Note: Changing all vending machines to diet sodas in 03-04 resulted in a whopping $251,000 reduction in vending sales for the 04-05 school year!
04/10/23 27
FINANCAL IMPACT
FOOD COSTS PRE-NSLP NSLP 04-05 05-06 06-07 07-08 08-09$5,162,330. $5,189,34. $5,892,896. $7,560,332.
$8,123,134.
Example: MILK COSTS PRE-NSLP NSLP 05-06 06-07 07-08 08-09 $623,603 $680,159 $946,859 $933,991
Total food costs increased significantly more over revenue since returning HS back to NSLP.
04/10/23 28
Cost Analysis
Chart shows change in food costs & revenue for 2 years prior and 2 years after the HS implementation
07-08 food cost was also due to hyper-inflation of food, fuel costs and replacement of profitable soda sales w/higher cost beverage offerings.
08-09 (1st year of plan) revenue increased at a greater rate than food cost.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
'05-06 '06-07 '07-08 '08-09
foodcostrevenue
04/10/23 29
FINANCAL CHANGE
So what’sthe fix?
04/10/23 30
First- 0ur SNS Requirements:
To continue to provide quality and nutritious foods that kids will actually eat- free or paid!
Keep the cost of lunch as low as possible
To provide outstanding customer service for students and school staff.
Be 100% self-supporting
Financial Solvency
QualityNutrition
Value
CustomerService
04/10/23 31
With Balancing Our Needs
Paid Child: Meal price, variety of choices, good ala carte offerings, & parents demanding nutrition.
Free/Reduced Child: Variety, short lines, nutrition, good ala carte offerings.
SNS: Lower food & labor costs while increasing revenue to offset HS NSLP implementation and become self-supportive.
Free/Reduced Meals
Vending
Time Constraints
Quality Food
Nutrition EdNutrition Requirements
Price of Lunch
Variety
Ala Carte
Labor
Food Costs
Expenses
04/10/23 32
Budget Drivers:
INCOME 1. Paid Lunches 2. Federal Reimbursements 3. Outside Sales (Catering & Vending)4. Ala Carte Sales
EXPENSES1. Payroll/benefits 2. Food/Supplies 3. Direct/Indirect Costs
HIDDEN: USDA FOODS!
04/10/23 33
THE NEXT STEP:
2009-10 School Year Action Plan
04/10/23 34
THE NEXT STEP:
2009-10 School Year Action Plan
The following actions will decrease operational costs by over $500,000:
04/10/23 35
THE NEXT STEP:
2009-10 School Year Action Plan
Labor:Reduce PPT hours by 5% 1. NO LAYOFFS. 2. New Labor Allotment Chart w/5%
reduction. 3. Monitor monthly for labor hours. 4. Encourage cafes to increase counts for
more labor hours. 5. No Overtime (except catering). 6. Saves approx. $150,000+.
04/10/23 36
THE NEXT STEP:
2009-10 School Year Action Plan
Labor:Not fill Dietitian-SNS Office position 1. Nutrition Ed program be reassigned
to Marketing Manager: CHO counts, Menu Ingredients and Food Explorers Programs. 2. Not fill Asst. Catering Manager. 3. Saves approx. $76,000.
04/10/23 37
THE NEXT STEP:
2009-10 School Year Action Plan
Labor:Reduce Manager Trainee Positions 1. With lower café turnover rate, not as many manager trainees are needed. 2. Vending manager will help cover schools. 3. Saves approx. $38,000, eventually over
$90,000.
04/10/23 38
THE NEXT STEP:
2009-10 School Year Action Plan
Labor:Revise Free Lunch Application Process 1. Change processing time of applications
from 2 to 3 days thus reducing overtime. 2. Schedule retirees to work with applications at the start of year. 3. Saves approx. $2,000.
04/10/23 39
Next Steps
2009-10 School Year Action Plan
Food:Revamp menus1. Revamp menus to lower food cost without
sacrificing service or menu quality. 2. Adjust menus to accommodate new labor.3. Eliminate higher costing specialty Fruit
66/Slushies on fruit trays.
04/10/23 40
Next Steps
2009-10 School Year Action Plan
Food:Slightly Increase Ala Carte prices1. All food items to be sold at a
minimum of 40% food cost or more.
2. Only approved ala carte items will be allowed to be sold in schools.
04/10/23 41
Next Steps
2009-10 School Year Action Plan
Food:Stricter management of food inventories1. Managers with high inventories/food
cost will do a perpetual inventory until in acceptable range.
2. New, easier to read P & L’s for manager. 3. Additional inventory audits in cafeterias.
04/10/23 42
Next Steps
2009-10 School Year Action Plan
Food:Re-bid Stable Food Bid 1. Counter the 14.3% increase in
food cost last school year. 2. Market is soft and expected to
lower food costs by over 5%! 3. Should save approx. $184,000!
04/10/23 43
Next Steps
2009-10 School Year Action Plan
Administration:
Suspend the 5 Star Program1. Reassign 5 Star supervisor to schools reducing
number of schools per supervisor to 16 to better serve you.
2. Revise # of Administrative Reviews & include evaluation items from 5 Star.
3. Increased unannounced visits from SNS: Oh no, Meal reviews from Tim, Shirley, Roni, and Bryan!
4. Will save over $51,000.
04/10/23 44
Next Steps
2009-10 School Year Action Plan
Administration: Suspend Employee Incentives
1. Suspend Savings Bonds for Perfect Attendance.
2. Suspend Employee Recruitment Program.
3. Will save a total of $23,000.
04/10/23 45
Next Steps
2009-10 School Year Action Plan
Administration: Start SNS Financial Oversight
Committee
1. Includes managers on committee. 2. Reviews and determines inventory levels/food costs for all schools. 3. Reviews new food items and prices.
04/10/23 46
Next Steps
2009-10 School Year Action Plan
Administration: Shift USDA Payments
1. Purchase USDA foods on an “as needed” and not pre-ordered system saving storage fees.
2. Shift more USDA commodities (such as
cheese) to processors with rebates.
04/10/23 47
Next Steps
2009-10 School Year Action Plan
Operations Reduce Travel: 1. No SNS employee will go to conferences unless necessary for recertification. 2. Employees can attend if pay own expenses. SNS will provide work related leave. 3. DOES NOT AFFECT EMPLOYEE TRAVEL/MILEAGE REIMBURSEMENT. 4. Should save approx. $7,000.
04/10/23 48
Next Steps
2009-10 School Year Action Plan
Operations: Reduce Uniforms for this year: 1. Only one uniform shirt/slacks will be issued this year. 2. Only two uniforms for new employees. 3. Uniforms at our cost will be available for
purchase. 4. Reducing uniforms should save $15,000.
04/10/23 49
Next Steps
2009-10 School Year Action Plan
Operations: No Equipment Replacement this year 1. No replacement of large equipment
unless needed for operation of cafeteria. 2. No small equipment unless approved
by field supervisor. 3. Limited PM on any equipment. 4. Saves approx. $28,500.
04/10/23 50
Next Steps
2009-10 School Year Action Plan
Operations: Expand USDA Programs
1. Increase number of After School Feeding sites. 2. Expand the Summer Feeding Program which will increase revenue during the summer. 3. Continue trial of selling USDA lunches to outside organizations in Summer
Feeding.
04/10/23 51
Why We Will Succeed!
BECAUSE OF US- WE ARE AN INCREDIBLE CAFETERIA
TEAM!
04/10/23 52
Why We Will Succeed!
Commitment Separates “Doers” From The “Dreamers”
Commitment starts in the heart Commitment is tested by action Commitment opens the door to achievement
Four Types of People 1. Cop-outs 2. Holdouts 3. Dropouts
4. All-outs
04/10/23 53
Why We Will Succeed!
1. NO PAY RAISES SAVED US OVER $500,000 ON OUR BUDGET!
04/10/23 54
Why We Will Succeed!
2. Free and Reduced Counts are up: Direct Certification increased this year from 6463 to 8511
students, a whopping 32% increase. This does NOT include any students who have to fill out applications.
3. Federal Reimbursement rates increased 10 cents: Based on last year’s participation, revenue will increase
by at least $260,000 dollars.
4. Paying Child: For every NEW customer who participates every day for
lunch our overall yearly revenue will increase by over $400!
5. Incredible SNS Cafeteria Teams:With everyone working together, this can and will
happen. Remember, all little efforts adds up!!!!