June 2011 Project #14026
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1 June 2011 Project #14026 Prepared by: K-12 Foodservice Assessment
description
K-12 Foodservice Assessment. Prepared by:. June 2011 Project #14026. Introduction. Introduction. - PowerPoint PPT Presentation
Transcript of June 2011 Project #14026
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Introduction
In February 2011, the PepsiCo Foodservice (Pepsi) education team requested that Technomic help them with developing a better understanding of the decision making process typically used by K-12 foodservice directors. Understanding the factors that most impact a school district’s purchasing behavior will impact the Pepsi go-to-market strategies. As such, the three overarching objectives to this study are:
What factors impact foodservice directors’ decisions to maximize funding/profits of school feeding programs? What support is needed/required from the manufacturer to assist with challenges and opportunities? How can Pepsi “play to win” in the K-12 segment (including how to respond to nutritional mandates)?
As an integral part of this assignment, Technomic has provided detailed insights into what the results mean and concrete recommendations on what initiatives Pepsi should implement to establish recognized points of differentiation from the point of view of school foodservice directors. Technomic realizes that the results of the study will play a major role in sales activities and segment-specific strategic planning.
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Key Issues
Through brainstorming, the Pepsi team has created an initial “wish list” of questions to be addressed in the research. These questions, and others added by Technomic, were asked of K-12 foodservice directors during the different phases of this effort. These included:
General Decision Making Criteria:– What activities are you doing today to increase average daily participation (ADP)?– Which feeding programs are receiving the most focus in an attempt to increase ADP (breakfast, lunch, after-
school, other)?– Which groups most influence what you serve in your schools (students, parents, foodservice staff,
teachers/principal, legislators, other)?– Do you have an after-school program? What is included in the program?
If so, what type of snack products fit best?– Do you compete with any other feeding/snacking programs at your schools such as vending or student stores?
If so, what is the impact of these competing venues?– With the Child Nutrition Act reauthorization, what do you see as the #1 challenge for your district?– What are you doing to raise awareness of nutrition at your school?
How successful have your efforts been?
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Key Issues (continued)
– How are you increasing revenue with other programs?– How often do you search for new menus? What sources do you use? Examples?– How do you promote new or different menu options? (to kids? to parents?)– In reviewing new menus, what level of importance would you assign to:
Ease of use Nutritional requirements Low cost Fun and different student perception Kid appeal Parent perception/pressure
– What are your biggest menu challenges for Primary? Secondary?– How often do you menu bagged snacks? What factors do you use to decide how often and which items?
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Key Issues (continued)
A la carte Items: Use, Profitability, and Challenges:– Do you bundle a la carte items into your menus today?
If not, why not? If so, how often?
– What drives sales in you’re a la carte program for secondary schools? (products, price, promos, equip, other)– What is your biggest challenge with you’re a la carte program in your schools?– What percentage of your overall foodservice program are a la carte items?– How do you decide which items to sell a la carte? (product, perception, margin, other)– What factors impact what type of snack display equipment your schools use?– Where is the equipment located?
Manufacturer Support - Promotions:– Do you currently track/redeem points to any national rewards programs?
If so, which?– Is your participation a determining factor on which products you use?– Do you use in-school promotions to promote reimbursable meals? A la carte? Which type work best?– What role should a manufacturer play in the development of promotions?– How often do you run student promotions?– Do you use any incentives/promotions to motivate your staff?
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Key Issues (continued)
Manufacturer Support - Engagement: – How often do you see your manufacturer rep? Broker rep?
Is it enough?– Would you like your rep to participate in profitability analyses? – Would you like your rep to consistently discuss potential opportunities?– Do you use parent/school flyers and brochures on nutritional facts from manufacturers as part of your school
program? How?– Do you visit manufacturers/suppliers websites?
If so, how often and what type of information do you look for on the websites? Are you satisfied with the results?
– Are you a member of any associations/groups? – How do you get nutritional information to schools? – Are there tools that a manufacturer can supply to help communicate to PTA/school officials?– How can a manufacturer better partner with your district?
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Key Issues (continued)
Implications of Changing Marketplace: – How important is the profitability of your school feeding program?
How has the importance changed over time? How often do you review profitability? How do you measure profitability?
– What do you foresee as the three aspects of the new USDA regulations that will have the biggest impact on your feeding programs? Why?
– What measures do you expect to take to help you quickly and effectively get in alignment with the new regulations?
– How have district budget constraints impacted your purchasing behavior over the past 24 months? – Is your foodservice program self-supporting only or, during the recession, has your budget been used to
support other school district departments? If you’ve seen budget dollars move to other departments, how has that impacted your
purchasing behavior?– What continuing foodservice efforts are you implementing in response to the challenging
economic environment?– Have you been forced to raise prices because of changing nutrition regulations and meal
reimbursement programs? If so, how has that impacted participation? What are you doing to address the issue of rising meal prices?
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Key Issues (continued)
Implications for PepsiCo:– What actions should PepsiCo take to best address the needs of the K-12 segment?– How should the organization be communicating capabilities and new developments to K-12
foodservice directors?– What K-12 foodservice programs do directors consider vital for a manufacturer such as PepsiCo? Why? How
can PepsiCo respond to those critical program needs?– What is the market potential for specific PepsiCo product categories given changes in the marketplace
(regulatory and otherwise)?– What level of service/coverage is the segment demanding and how can PepsiCo best go-to-market?– What are the opportunities and threats facing PepsiCo in the K-12 segment?
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Methodology
To meet study objectives and to fully capture the perspectives of decision makers, Technomic followed this multi-step methodology:
Step One: Project Foundation Meeting– The Technomic research and consulting team discussed this study with PepsiCo team members
(via conference call) to review the study objectives, elaborate on online focus group processes and participation, discuss the PepsiCo vision for using study findings, and refine project deliverable expectations.
Step Two: Online Focus Groups/Panel Discussions– Technomic recruited 30 K-12 foodservice directors and facilitated online focus groups/panel discussions
(2 groups of 15 participants). Participants were screened so that Technomic was able to assess the results by district and individual characteristics. The participants were responsible for primary and secondary school district foodservice programs, and participated in three day sessions.
Step Three: Assessment of Online Results– Detailed preparation for quantitative and qualitative interviews is a crucial step in ensuring a solid depth
of information is gathered during the interviewing process. The results of the online groups helped in the creation of guides that served as the foundation for in-depth qualitative and quantitative interviews.
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Methodology (continued)
Step Four: Qual/Quant School FSD Interviews – Technomic conducted 100 qualitative/quantitative telephone interviews with foodservice directors identified
in the education segment. These interviews typically ran for 18 to 22 minutes and address 25+ topics/questions.
– After completion of the interviews, Technomic performed a complete tabulation of results and interpretation of director insights and needs. This step helped produce data points that quantify director behavior and priorities.
Step Five: In-Depth School FSD Interviews – Technomic conducted 20 high-level, in-depth targeted interviews with foodservice directors. These interviews
typically ran 30+ minutes and assisted in understanding the “whys” behind foodservice director behavior, needs and expected future focus.
Step Six: Data Synthesis and Analysis– Following the primary information gathering phase of the project, the Technomic consulting staff thoroughly
assessed the research findings and have analyze and organized the data and insights from the interviews.
Step Seven: Reporting and Presentation– At the completion of all field work and analysis activities, Technomic will prepare a report to document study
results, conclusions, and implications. In the end, our team will present (via webinar) the findings and interview results to the appropriate PepsiCo team members.
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List of All Conclusions
After completing the process of marketplace interviews, Technomic consultants analyzed the collected information and developed several key conclusions. Those conclusions and supporting insights are described on the following pages:
Frito Lay & Quaker are viewed positively amongst the K-12 foodservice community, but competition is not far behind.
With impending USDA regulations and costs increasing, a la carte menu items are in trouble and need to offer “value”.
Smaller districts do not see manufacturer representatives as often as larger districts. Opportunity exists to reach them through the use of a web site or social media.#3
#4
Health & Wellness is a “hot topic” in k-12 foodservice, but implementation is diverse. You must get through this first.
#2
#1
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List of All Conclusions
Segment is going away from salty snacks and looking for more “whole grain” alternatives
Marketing efforts need to be around health attributes and how it will fit into the menu
Tropicana 100% juice will be very important going forward with new juice regulations#6
#7
#8
State and district regulations differ throughout the country.#5
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List of All Conclusions
Sales Representation
Go-To market strategy – less is more
#11
#12
Government subsidies drive purchasing decisions
Decisions differ between affluent districts and less affluent districts
#9
#10
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Conclusion #1
• No matter the size or location, health and wellness is the biggest talking point amongst K-12 foodservice operators. In a segment that has put a heavy emphasis on nutrition over the past several years, the topic is only increasing in importance. With the reauthorization of the Child Nutrition Act and strict USDA regulations not far down the road, schools are aligning themselves to succeed with the policies on the horizon.
• Foodservice purchasing personnel are paying closer attention to nutritionals in every product that is purchased and taking a longer look into how it fits into the menu. Many foodservice directors are following the 30-10-10 rule: The meal can not exceed daily values of 30% fat, 10% trans-fat and 10% sodium. While a large amount of FSDs may not agree with the impending regulations, such as increased whole fruit offerings and a decrease in starchy vegetables, they have little to no choice but to follow them in order to receive government funds reimbursing the meal and avoid pressure from concerned parents.
• Manufacturers need to be get past this barrier before any other factors are even considered. Whereas cost and quality are typically top selection criteria when evaluating foodservice products, no other segment in foodservice to date has been straddled with such strict nutritional guidelines.
Health & Wellness is a “hot topic” in k-12 foodservice, but implementation is diverse. You must get through this first.#1
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Conclusion #2
• K-12 operators are coming to a “crossroads” regarding a la carte programs. While 87% report selling snacks a la carte, many foodservice directors report cutting back offerings in order to receive more government subsidies as rewards for reimbursable meals. Items such as salty snacks, ice cream and cookies are being closely examined as budgets become tighter to see if they are “necessary” components to the feeding program.
• The ability to bundle a la carte items to meals is attractive to school districts; however, products high in calories, sodium and fat are difficult to bundle due to impending regulations. Foodservice directors are more likely to bundle healthier options, such as whole fruit or vegetables, to meet reimbursable meal requirements.
• Going forward, foodservice directors will be looking at portion size and nutritionals of products for their a la carte programs. A minimum of 1 oz bags are required, while FSDs are seeking whole-grain products in order to meet grain and bread menu requirements. A la carte items that can be marketed as such will have priority over other items that do not necessarily offer “value” to a meal.
With impending USDA regulations and costs increasing, a la carte menu items are in trouble and need to offer “value”.#2
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Conclusion #3
• While PepsiCo does an excellent job of penetrating and informing districts in larger urban and suburban regions, interviews with K-12 operators in isolated areas of the country show that they believe they are perpetually “behind the ball” when learning about new product introductions and product changes from manufacturers.
• K-12 operators in all regions frequently check web sites for nutritional information. At this time, PepsiCo’s two biggest competitors in the marketplace – Kellogg’s and General Mills – have pages on their respective web sites devoted to the primary and secondary school foodservice segment. This enables operators to check out vital information about nutritionals while having other resources, such as marketing and sales materials, at their disposure.
• The use of the internet – whether it be through a dedicated web site or social media – can help PepsiCo reach a broader audience within the education segment. This can alleviate the pressure of a sales force reaching all areas of the country while giving those interested in PepsiCo’s products easy access to information.
Smaller districts do not see manufacturer representatives as often as larger districts. Opportunity exists to reach them through the use of a web site or social media.#3
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Conclusion #4
• The Frito Lay and Quaker brands are viewed favorably within the K-12 community. Among “a la carte” manufacturers, the two are leaders in their respective categories, particularly when it comes to “kid appeal” and brand recognition. However, the competition is not far behind.
• As foodservice operators look ahead, manufacturer satisfaction will focus more on how products can fit nutritionally into a menu rather than center on strictly the kid friendliness of an item. General Mills provides marketing materials on how to increase K-12 on-the-go breakfast participation. Kellogg’s Chex Mix markets “reimbursable options that kids love.” PepsiCo’s brands currently hold an advantage over its competition – it is up to the company to stay ahead of the curve and leverage its positioning as the go-to provider of snacks.
Frito Lay & Quaker are viewed positively amongst the K-12 foodservice community, but competition is not far behind.#4
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Conclusion #5
• While the USDA regulations will be federally sanctioned – if they pass – it is important to note that policies differ between states and districts. In lieu of future mandates, many districts have already aligned themselves with certain criteria. Sodium and whole grain have been at the forefront of the movement in recent years and will continue to be in the future.
• States and districts have different requirements regarding nutritionals. Where sodium may not exceed 30% of a student’s daily value in one district, that percentage may be 35% in the district a county over.
• Manufacturers need to understand that what works for one district may not for another. PepsiCo must keep this in mind when going to market with its snack product line. Foodservice directors appreciate manufacturers that understand its needs and limitations. A sales force that can understand and cater to the individual district needs will set itself apart from its competition.
State and district regulations differ throughout the country.#5
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Conclusion #6
• Enter text
Tropicana 100% juice will be very important going forward with new juice regulations#6
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Conclusion #7
• While Frito Lay salty chips have tremendous kid appeal and sell well when offered, foodservice directors are looking for “better-for-you” snack options. Ninety-percent (90%) of K-12 operators are selling baked chips while only 41% are offering salty snacks in their a la carte operations. There is an obvious shift in the paradigm of what an a la carte program consists of.
• Baked chips remains the current answer for many districts; however, more and more are searching for whole grain options. Chip manufacturers need to understand how their products can fit within federal, state and district wellness guidelines. Salty snacks still have a presence amongst some districts that have not positioned themselves in line with upcoming rules and regulations. However, once these regulations are officially mandated, the future of salty potato chips is in danger, especially for those districts that heavily rely on free and reduced-price meals.
• In a search for whole grain options, many operators have said Sun Chips present an excellent choice when searching for a la carte items, particularly those that can be bundled as part of a reimbursable meal. PepsiCo can capitalize on the benefits the line presents the operator.
Segment is going away from salty snacks and looking for more “whole grain” alternatives#7
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Conclusion #8
Marketing efforts need to be around health attributes and how it will fit into the menu#8
• Enter text
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Conclusion #9
• Most schools rely on lunch sales to drive foodservice sales. However, districts are looking at the breakfast daypart to increase average daily participation and to push the nutrition agenda. Many schools have begun delivering breakfast to the classroom, particularly at the elementary level, while others have a renewed focus on the morning daypart since there is already such high participation during the lunch meal.
• Additionally, nearly 50% of school districts are offering homework help ,tutoring and many recreational programs after classes end. During these times, administrators are selling portable snack items – bagged chips, fruits, granola bars and juices to name a few.
• These dayparts offer a significant opportunity for PepsiCo in the K-12 marketplace, particularly with Quaker and Tropicana product lines. Oatmeal, granola bars and 100% juices are perceived as nutritionally acceptable items to serve students.
Government subsidies drive purchasing decisions#9
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Conclusion #10
• Foodservice directors make it clear that their time is precious. In dealing with dozens of vendors in a given school year, FSDs do not have time to meet with sales representatives from every manufacturer too frequently. Most would like to see a rep on an “as needed” basis, most typically when a new product is being introduced or the manufacturer needs to express new information about a product or a line.
• Additionally, directors are open to the opportunity for manufacturer-sponsored promotional activity, as long as the manufacturer is responsible for the majority of the execution. Schools prefer “nutrition-based” promotions rather than singling out a specific vendor; however, manufacturers that can do both have had success in the past.
• PepsiCo needs to remember to “make it count” during these manufacturer visits. Directors do not want to waste time going over old information about existing products. They value partnerships and prefer when representatives offer something new to a conversation. Any opportunity PepsiCo has during these meetings to share thoughts about nutrition, kid appeal, or a promotion that focuses on improving health and wellness can benefit both all parties involved.
Decisions differ between affluent districts and less affluent districts#10
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Conclusion #11
• During the course of this study, Technomic interviewed school districts on all ends of the spectrum. Those districts who tend to be “better off”
Sales Representation#11
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Industry Data
2010 Retail Sales Equivalent
2010 Operator Purchases
2010 Manufacturer Shipments
Potential Contact Points
Nominal Growth
Real Growth
($ Billions) (Share) ($ Billions) (Share) ($ Billions) (Share)(Share)
2010 2010R 2011F 2010R 2011FPrimary/Secondary Schools*
17.288 3.3 8.664 4.9 7.780 5.1 16,925 2.0 1.6 0.5 0.6
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Self-operated vs. FSM
While foodservice management firms have a presence in the education segment, the majority of K-12 operators interviewed are self-operated. Foodservice directors, particularly in districts with multiple schools, find it more cost-effective running the foodservice operation in-house. Overall, 94% of respondents are not operated by FSMs, while 6% make use of their services.
Self-operated94%
Operated by foodservice
management firm6%
Q1: Is your school district self-operated or operated by a foodservice management firm (i.e. Compass, Sodexo, Chartwells, etc.)?
% Self operated vs. FSM managed
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Foodservice Groups/Associations
Eighty-five percent (85%) of FSDs interviewed belong to a foodservice related group or association. Nearly all respondents that report they are part of a group or association are involved with their respective state’s School Nutrition Association, which provides industry/segment information, education and recipes to members. This membership, however, does not typically play a role in purchasing decisions but rather serves as a resource for information.
Yes - Which one(s)?
85%
No15%
Q2: Are you a member of any foodservice related groups or associations?
Frequency of Foodservice Association Membership
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Meals served
Not surprisingly, lunch (99%) and breakfast (93%) are the most common meals served at schools. Half of districts interviewed (46%) have after-school programs and nearly one of five school districts offer mid-day snacks to students.
99%
93%
46%
19%
4%
Lunch
Breakfast
After-schoolprograms
Mid-day snacks
Dinner
% Open for Daypart
Q4: What daypart(s) is your foodservice operation open for?
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Average Daily Participation
Foodservice directors are actively aiming to increase participation in school feeding programs. In best doing so, FSDs are continuously rolling out new menu items, promoting on the district/school web site and engaging in weekly or monthly student giveaways. Some districts employ kid-friendly promotions such as “lucky tray day”, where students finding a sticker at the bottom of the food tray win prizes.
Breakfast36%
Lunch60%
Snacks0%
After-school program
2%
Other2%
Feeding Program Focus
Q6: Which feeding program receives the most focus in an attempt to increase ADP? (select one)
36%
32%
42%
44%
60%
63%
58%
50%
Total
1-10
11-29
30+
Breakfast
Lunch
Feeding Program Focus by District Size
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Average Daily Participation (continued)
Chef to school
Some districts are not active in attempting to increase average daily participation, particularly those with high percentages of students that qualify for free and reduced-price meals. With high Free and Reduced populations, some districts actually lose money with more people participating.
• “I’m not doing anything to increase ADP. It’s a double-edged sword. The more students you have eating school lunch or any meal, the more I pay in indirect costs. There’s no incentive for me doing that. I want there to be participation, and we try that, but I’m just not a big believer that giving away a bookmark is going to make a difference.”
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Feeding Program Focus
Not surprisingly, breakfast and lunch receive the greatest focus from foodservice directors. As lunch typically receives the greatest participation – particularly in larger school districts – breakfast becomes a larger priority as the size of the district increases.
• “The most focus is on breakfast. This is where we have the most potential to grow because we currently feed a smaller percentage of the population as compared to lunch, where we sometimes max out. Plus, there is a big push to show the nutritional importance of breakfast.”
• “Our lunch participation is 75% and our absentee rate is 10%, so lunch really cannot get much higher. Breakfast participation on the other hand is at 50% and has some real opportunity for improvement.”
Many districts have begun serving breakfast in the classroom using portable carts. This is most commonly seen in primary schools to increase ADP and push the importance of nutrition on the students.
• “At breakfast we have Grab & Go meals at the elementary level. This really increased our participation.”
• “We have started breakfast in the classroom at three of our elementary schools. ADP increased instantly and has remained stable a year later.”
• The breakfast daypart is receiving the most attention for many school districts, presenting opportunity for a larger variety of food items brought in.Key Takeaway
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Group Influencers
Menu items that students do not like will not sell, which points to why 97% of foodservice directors report that students drive what is served in the schools. Smaller sized districts rely heavier on foodservice distributors than larger districts, often purchasing the most readily available products.
The influence of legislators/regulating agencies increases with the number of schools in a district. While 69% of operators report they carry weight, larger districts appear to feel heavier pressure.
Q9: To what extent do the following influence the items you serve in schools? (Using a scale of 1-5, where 1=very little influence and 5=very big influence.)
• Legislation plays a large role in purchasing decisions, but PepsiCo needs to remember that the students are the ultimate decider.Key Takeaway
Top 2 Box
Total 1-10 11-29 30+
Students
97% 97% 100% 94%Legislators/Regulating Agencies 69 65 71 81Foodservice Staff 52 55 58 31Foodservice Manufacturers 46 47 54 31Foodservice Distributors 43 47 38 38Parents 38 35 29 62Teachers/principals 33 33 25 44Peers in the Business 33 30 29 50
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Group Influencers
As shown on the previous page, current and pending legislation is heavily influencing district purchasing decisions. Since students are the end-users no matter the age, the foodservice director’s job is always to cater to the children. However, many directors need to abide by current – or get ready for possible – regulations rather than take into consideration student preferences.
• “Legislators sure hold the reins right now on making all of these regulations. The next couple of years are going to be very tough.”
• “Kids like things like mashed potatoes and gravy, which is a shame because that is one of the products that we are taking off of the menu due to the new government regulations. I don’t think a half of a cup of mashed potatoes is going to hurt anyone, but apparently the government thinks differently. The fact they don’t go exercise is going to hurt them, not eating mashed potatoes.
The weight of each group’s influence also differs between primary and secondary schools. Parents tend to have greater pull in elementary schools, where students are generally not using their own money, but rather that of their parents. On the contrary, high school students often use their own discretionary funds, making them much pickier with how they spend their money.
• “The influence is coming from a combination of everyone. Legislators are the biggest influencers right now, then the parents and lastly the students, especially at the lower grades. In the higher grades, students are more important because they are making their own decisions with their own money.”
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After-School Programs
As shown earlier in this report, 46% of K-12 operators surveyed currently have after-school programs. These programs most commonly consist of tutoring and homework help. Schools most often utilize shelf-stable, “healthy” or more nutritious snacks during this time period, such as 100% juices and granola bars.
• “We have after-school tutoring. We only provide a snack for this program, which consists of a bag of baked chips, pretzels or teddy grahams and a 100% juice.”
• “We have tutoring, homework help and some recreational activities after school. Pre-packaged snacks (cookies, cheese and crackers) and aseptic juice boxes work best because of lack of refrigeration.”
• “We have a huge after school program and give out about 30,000 snacks per month. We only have healthy items: 100% fruit juices, granola bars, 100 calorie snacks, and fruit.”
• Many offerings within the Quaker and Tropicana lines fit within guidelines and preferences of after-school snacks.Key Takeaway
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School Feeding Programs
Foodservice programs no longer consist of simply a cafeteria and vending machines. Twenty-three percent (23%) of schools make use of student-run stores, which many secondary schools use to teach students business skills. Stationary carts or kiosks, which can be located anywhere from a hallway to an outdoor patio, have become very popular amongst larger school districts. Classroom delivery, particularly for breakfast, is also more prevalent in districts with 30 or more schools and is used as an opportunity to increase ADP.
These offerings are viewed as part of the overall foodservice program. Directors do not consider any of the following “competition” to their overall feeding programs, but rather additional streams to increase revenue and participation.
Q7: Which of the following feeding/snacking programs do you have at your school? (select all that apply)
School Feeding Programs
Overall 1-10 11-29 30+
Cafeteria99% 98% 100% 100%
Vending53 55 50 50
Student Stores23 20 33 19
Stationary cart or kiosk19 10 17 56
Classroom delivery19 13 21 38
Concession stand29 32 29 19
• While nearly all districts have a school cafeteria K-12 operators are making use of many feeding programs, lending multiple opportunities for penetration.Key Takeaway
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Child Nutrition Act Reauthorization
In December 2010, President Obama signed the Healthy, Hunger-Free Kids Act, reauthorizing the Child Nutrition Act. As a result, the USDA has proposed several new regulations for primary and secondary school districts. Though these are not yet in effect, foodservice directors are bracing themselves for the impending policies. These regulations include:
Decreasing the amount of starchy vegetables, such as potatoes, corn and green peas, to one cup a week. Reducing sodium in meals over the next 10 years. Establish calorie maximums and minimums for the first time.
For lunch: 550 to 650 calories for kindergarten through fifth grade; 600 to 700 for grades 6 through 8; 750 to 850 for grades 9 through 12.
Serving only unflavored 1% milk or fat-free flavored or unflavored milk. Currently, schools can serve milk of any fat content.
Increasing the fruits and vegetables kids are offered. The new rule requires that a serving of fruit be offered daily at breakfast and lunch and that two servings of vegetables be offered daily at lunch.
Over the course of a week, there must be a serving of each of the following: green leafy vegetables, orange vegetables (carrots, sweet potatoes, summer squash), beans, starchy and other vegetables. This is to make sure that children are exposed to a variety of vegetables.
Increasing whole grains substantially. Currently, there is no requirement regarding whole grains, but the proposed rules require that half of grains served must be whole grains.
Minimizing trans fat by using products where the nutrition label says zero grams of trans fat per serving.
• It is essential that PepsiCo understands all impending federal regulations and the key sections foodservice operators are most concerned about.Key Takeaway
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USDA Regulations
Overwhelmingly, meeting nutritional requirements while staying within the budget is the primary concern with the new USDA regulations of K-12 operators. Foodservice directors are being asked to change menus and offerings – in some instances adding items – but the government is not offering financial assistance.
• “Making budget is going to be the most difficult part. We need to increase fresh fruit and vegetable offerings, but we are not receiving more money. It’s really going to take a toll on our budget.”
73%
55%
40%
36%
21%
20%
8%
7%
6%
5%
4%
Meeting nutritional requirements while staying…
Limits on calories/trans fat/sodium/saturated fat
Increased fruit and vegetable offerings at lunch
Increased fruit requirements at breakfast
Increased whole grain requirements
Protein requirement for breakfast
Access/communication of regulations information
Fluid milk requirements
Requirement to identify foods that are…
I’m not familiar with the new USDA regulations
Other
USDA Regulations with Largest Impact
Q11: Based on your understanding of the new USDA regulations, which three changes will have the biggest impact on your feeding programs? (select three)
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USDA Regulations (continued)
Foodservice directors are concerned about many of these future mandates. As stated on the previous page, the primary challenge will be the cost constraints and staying within the budget. While the government plans on adding 6 cents for reimbursable meals, FSDs do not believe this will cover the added expenses. As a result, many operators plan on raising school lunch prices, which they feel will negatively impact participation in the feeding programs.
• “The number one challenge of the new regulations is the money. Everything we are going to be required to do costs money and frankly, 6 additional cents in reimbursement is not going to come close to covering the additional costs.”
• “We will have additional costs and with a price increase, we will see a drop in participation. That’s not a winning combination!”
While staying within the budget is causing the most discussion, operators are also concerned with a number of other issues. More than half of K-12 foodservice directors feel that the reduction of specific nutritionals, such as calories, fat and sodium, will have the greatest impact on their feeding programs, while another 40% are concerned about changing fruit and vegetable lunch requirements.
• “The calorie restrictions are going to be difficult. It’s going to be hard for directors to try to keep some of the foods we have now. Food like corndogs, pizza are in trouble, and I’m almost afraid it will get to the point where we can’t menu burgers or chicken burgers.”
• “The biggest challenge for us is going to be the requirement for kids taking fruits or vegetables at lunch of breakfast. Our breakfast costs are going to be out of sight. We are really going to have to make adjustments to the way our serving line is set up, making sure that our fruits and vegetables are closer to the front of the line, in order to meet the requirement. I just feel there is going to be a lot of waste.”
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USDA Regulations (continued)
Most school districts have wellness policies in place that are just as – if not more – stringent than what the government is calling for. Districts have made the effort to stay ahead of the curve, particularly with sodium, fat and whole grain regulations. Those who have adhered to these previous policies appear to be taking the future USDA regulations in stride.
• “We have a district policy that is tighter than a lot of regulations, but they are right in line with what we will be expected to do.”
• “We are already menuing some whole grain products. We have had wheat bread and buns for 2-3 years because we knew the government was going to come down at some point.”
• Each district is at a different stage of preparation on the curve. PepsiCo reps need to understand these differences and cater their sales approach appropriately.Key Takeaway
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Health & Wellness
Health and wellness has become a central theme throughout the primary education world. With child obesity rates increasing, the government has made it a priority to increase health awareness with young students. First Lady Michelle Obama has made it a focal point during her husband’s time in office, launching the “Let’s Move” Program to help fight child obesity.
Many educators have partnered with parents in the community and have put wellness policies in place. Districts are collaborating with the community and educating students via their menu mix.
• “We have a health and wellness committee. We put out a monthly wellness newsletter, we have a fitness walk, provide wellness materials on the web site, and participate in community fitness events.”
• “The main thing for us is having as many whole grain products as we can and cutting down on sodium because we already fall within the USDA regulations with fat and saturated fats. We’re menuing more products that are lower sodium and high grain, such as bread, buns, biscuits and flour tortillas. We make sure to let the students know the benefits whenever possible.”
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Nutrition Awareness
Foodservice directors are primarily using visuals to raise awareness of nutrition at the schools. Nearly 9 of 10 foodservice directors report using materials such as signage and posters in the cafeteria, while 59% post nutrition information on a school or district web site.
Education in the school expands beyond the cafeteria walls and into the classroom. Fifty-six percent (56%) of operators in the segment include education in the curriculum, while 41% report the existence of non-curricula based classroom activities. These include classroom visits by the school or district dietician to stress the importance of nutrition to students.
88%
59%
56%
54%
41%
34%
18%
10%
6%
5%
3%
Posters in cafeteria
Post nutrition information on web site
Education in curriculum
Offering “better-for-you” menu options
Classroom based activities/programs (that are not specific to acurricula)
Fliers/Mailings to parents
Labeling/icons on menu items to signify “good for you” (i.e. color coded labels for items at salad bar)
Chef programs
Other
Student-run outreach
We aren’t actively trying to raise awareness of nutrition at our school
Methods of Raising Nutrition Awareness
Q10: What are you doing to raise awareness of nutrition at your school? (select all that apply)
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New menus
As has been made clear, foodservice directors need to ensure that a prospective new menu item meets nutritional requirements. Beyond that, kid appeal and cost tend to be the two most important criteria during the evaluation phase. Student preferences drive sales, and FSDs want to ensure that the new items will increase participation and revenue.
“Our first priority is that all menu items meet the USDA Healthier US Schools Challenge. Keeping this in the forefront, we then look for menu items that have kid appeal.”
• “It's all important! Kid appeal is probably the most important, if they don't eat it nothing else matters!”
• “The kid appeal is most important as is the fun & different student perception. They are our customers.”
• “Kid appeal remains the most important as long as it fits into the nutritional requirements. For instance, we have added cheese ravioli, flatbread pizza, and perogies. They are all kid-friendly foods and meet the requirements too!”
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Promote new/different menu options
Schools make use of several promotional tools when menuing new or different options. Along with signage, menu identifiers, and mentions during the morning announcements, many schools will provide samples for the students before the menu item is introduced in order to “break the ice” before it is officially offered. During the sampling period, school administration wants to make sure it is accepted by the students who will be purchasing the items.
• “We promote new menu options by first having a taste testing in the cafeteria. We solicit student feedback and if it is good, we will launch the new menu item. Students care how the food tastes and looks. Parents are more interested in the nutrition.
• “We advertise it at school to the students using posters and closed circuit TV. We will do student promotions where we have samples for them to taste. Sometimes we just feature it as a special on the menu. We don't really promote new items to the parents. However, we have used our web site and school newsletters to let them know what’s new.”
Other than making mention on menu mailings and newsletters, school districts do not make a concerted effort to market or promote new menu options to parents. Some districts will italicize or call out “new” menu items for parents, but foodservice directors make it clear that the students are the key decision makers when purchasing meals – not the parents – and targeting the former in promotional activities is more important.
• “We don't really promote new items to parents. Students are our customers in our cafeterias. They are the people that see and provide feedback on new possibilities.”
• “We will highlight new items on the menu, preview information in line 2 weeks ahead, and share with student leaders ahead of time to spread the word. Kids are savvy these days and are powerful shoppers.”
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Evaluation of new menu review
– very important – important – less important
When searching for new menu items, the most important factor to evaluate is the product’s nutritional requirements. No matter the school’s size or location, if a product is not going to nutritionally offer value to the menu, it will have limited – or no – place. All other factors are considered secondary. Amongst larger, suburban school districts, kid appeal is most often looked at as the second most important factor. However, cost is a bigger issue amongst smaller, lower-income school districts.
Factor Importance Comments
Nutritional Requirements “First is nutritional requirements. If the items do not meet the standards, it doesn’t matter if they are cheap or kid friendly. we can’t serve them.
Kid appeal “If the kids aren’t going to eat it, then nothing else matters!”
Low cost “Budgets are tight and schools are always looking at charging more items to the food service budget.”
Parent perception/pressure “Parent perception and pressure is always a constant concern. If a parent doesn't like something, they can certainly influence a lot of people - starting with their own child(ren).”
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Menu challenges – Primary Schools
Menu challenges are different between primary and secondary schools. Elementary and middle school students choose their foods very carefully and are accustomed to what they consume outside of school. Many FSDs report difficulty finding nutritious items that the children will eat.
• “My biggest challenge at elementary schools is variety of healthy items that the kids will eat, particularly vegetables. They now are accepting the whole grain/wheat products and like fresh fruit. They still like the fast food type choices over the home cooked.”
This “pickiness” presents another challenge for primary schools. Operators serving the K-8 segment continuously seek new menu ideas that keep the menu “fresh”. This is easier said than done.
• “Primary school students get stuck in little food jags and don't often try new things.”
• “In primary schools, the challenge is menuing what they like, but still offering a variety.”
• “The primary school students want simple, easy items they get at home or from a fast food place. Menuing variety gets challenging when their taste buds are so picky.”
56
Menu challenges – Secondary Schools
Secondary schools have different obstacles to face. While students in K-8 prefer the same menu, older students are looking for more variety. Foodservice directors have difficulty finding new menu items that “spice” up the menu that also fit within the nutritional guidelines.
• “Secondary schools cause grief as the kids are savvy, palates are developing, have peer influence and discretion over money.”
• “For the secondary schools, the kids are much more savvy so we can let them decide what items they would like to see while thinking of nutrition.”
• “Tastes have increased with older students, so the challenge is keeping their interest. We try doing this by changing up the menu as much as possible and offering new items.”
Older students more often spend their own money rather than their parents in the school lunch line. This enables them to be able to choose the items they want to eat more wisely. These students, especially in open campuses, have a plethora of options available, and schools need to offer competitive options at competitive prices.
• “We use a food court concept at the high schools so we have more variety daily. The biggest challenge is that they want the French fries , drinks and snacks that we can't sell so they wait until they are out of school or bring them with them to school rather than eat with us.”
• “It’s very hard to compete when we are selling a meal for $2.50 and it has to fit within nutritional guidelines when the student can run across the street and go to McDonald’s and get a meal they would rather eat for just as much. We just try to keep the menu fresh and offer them items they can’t get elsewhere.”
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A La Carte Programs
• The extent of the a la carte program differs within schools in the district. Elementary schools typically have little to no program, as the stress for health and wellness is greatest. Middle schools generally have a little bit of a wider selection of products to choose from, while the most variety of a la carte menu items is offered at the high school level.
• Wellness policies differ between states and districts – and even within a district. Elementary, middle and high schools will typically have different criteria that need to be met for a la carte programs. Below is an example from a district in California, outlining specific requirements for snack items:
Elementary Schools Middle Schools
Not more than 35% of total calories from fat (nuts, seeds, individually packaged cheese exempt)
Not more than 35% of total calories from fat (nuts, seeds, individually packaged cheese exempt)
Not more than 10% of total calories from saturated fat (individually packaged cheese exempt)
Not more than 10% of total calories from saturated fat (individually packaged cheese exempt)
Not more than 35% of total weight from sugar, including naturally occurring and added sugar (fruits andvegetables exempt)
Not more than 35% of total weight from sugar, including naturally occurring and added sugar (fruits and Vegetables exempt)
Not more than 175 calories per individual food item Not more than 250 calories per individual snack item
Electrolyte replacement containing no more than 42 grams of added sweetener per 20oz serving
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Offering A La Carte Programs
A la carte programs – which were defined for the scope of the study as sales that are independent of the meal program – are prevalent within K-12 school districts. Eighty-seven percent (87%) of K-12 operators have an a la carte program in their district.
% of Operators with A La Carte Programs
Q12: Do you have an a la carte program (An a la carte program is being defined as sales that are independent of the meal program, such as packaged chips, cookies, fruits, etc.)?
Yes87%
No13%
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A La Carte Items Sold
With the exception of cookies, most a la carte items listed below appear to be “better-for-you” than many traditional offerings. The item that most primary and secondary school operators sell as part of the a la carte program is baked chips/snacks (90%). This is a stark contrast compared to salty chips/snacks (41%). Once again, FSDs are looking for products that not only taste good and have kid appeal, but most importantly fit within district, state or federal wellness policies.
Items Sold A La Carte
Q14: What items do you sell a la carte? (select all)
Baked chips/snacks (bagged)
Cookies
Yogurt
Whole fruits
Granola bars
Crackers
Fruit based snacks
Fruit cups
Salty chips/snacks (bagged)
Other
Dip (for vegetables)
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A La Carte Selection Criteria (continued)
Meeting state and district wellness criteria plays a large role in the selection of a la carte items. Many districts abide by the 35-35-10 rule: 35% or less total fat, 35% or less sugar by weight, and 10% or less saturated fats. Products that fit within these guidelines are a welcome addition to the a la carte menu.
• “Much of what we sell is limited by our wellness policy so products have to be baked, not fried. Even the ice cream has to be lowfat.”
• We are always looking for items that students will purchase that meet our nutritional requirements. Most baked chips meet this criteria, along with graham crackers and fresh fruits.”
Districts that have a la carte programs use them as an additional revenue stream and rely on competitive prices to drive sales. Having a high margin plays a large role in whether to offer the product as an individual sale.
• “We take margin into heavy consideration when looking at a la carte items. If we can’t sell them for a decent amount, we don’t even consider them. If a supplier comes to us with a brownie that will cost us $0.50 and knowing we have to sell that for $1, we aren’t even going to look at that because we know that our students won’t pay $1 for a brownie.”
• “The cost and resale price are the two biggest factors to sell an item a la carte. If we can’t make at least double on something a la carte, there is little room for it in our program.”
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Selling A La Carte Items
The vast majority of those operators making use of an a la carte program have the items – at least some of them – available on an every day basis. Overall, 98% of FSDs report making individually wrapped or packaged items available five days a week.
Yes98%
No2%
Operators Selling A La Carte Items Everyday
Q13: Do you sell a la carte items on an everyday basis?
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A La Carte Bundling
K-12 operators are most often bundling a la carte items that offer nutritional value to the meal. Whole fruits are bundled daily 58% of the time due to their contribution towards the increased fruit and vegetable requirement. Many of the items that are offered a la carte – such as snacks and cookies – often remain an a la carte item.
Q15: How often do you “bundle” a la carte items. In other words, how often are a la carte items included with the main menu at a fixed price?
Frequency of “bundling”
Daily 2-4 times per week
Once per week
Once a month
Once every other month
Once a year or less often
We do not ever bundle
this a la carte item
Whole Fruits58% 12% 6% - 2% 2% 20%
Fruit Cups39 11 11 9 2 2 25
Yogurt37 4 12 9 4 4 29
Dip (for Vegetables26 16 21 11 - - 26
Salty chips/snacks (bagged)22 6 6 6 - 6 56
Crackers19 6 6 12 6 4 46
Baked chips/snacks (bagged)17 1 8 17 4 5 49
Cookies16 5 8 14 8 4 44
Fruit Based Snacks13 2 4 13 2 6 60
Granola bars11 2 8 2 2 5 70
Other8 - 4 - - 8 79
• Most a la carte items are purchased for that intent, not to bundle with meals. Products that fit withina meal’s wellness criteria are bundled more often than others.Key Takeaway
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A La Carte Bundling Challenges
The idea of “bundling”, or including a la carte items as part of the main meal, is excellent in concept but often difficult to execute with many menu options. The primary concern is staying within nutritional guidelines when integrating a la carte items into the main meal.
• “We bundle a la carte items into the menu at a few of our high schools, and it may be only one or two items. We do not bundle chips. The fat content for the entire meal needs to be below 30%, and it’s difficult to do that when including chips on the menu.”
• “We bundle items based on student preference and nutritional guidelines. We put in items that usually qualify for reimbursement. For example, we bundle in Sun Chips because students like them and they are reimbursable.”
The concept of reimbursable meals is an important one for school districts. As long as a meal stays within nutritional guidelines, the district receives money back for the meal. In line with staying within nutritional guidelines, packaged snacks that become a component of a meal need to meet size requirements. Directors reported the need for chips to be between 1-2 ounces in size. Having a la carte items that are bigger than necessary are counter-productive when bundled. Due to the increased requirements for proteins, whole grain and fruits & vegetables, bundling an item with little to no “value” results in a monetary loss for the school.
• “We don’t bundle a la carte items into our menu. It’s too expensive and anything we do a la carte is a different size relative to what can be put in a meal.”
• “A bag of chips has to be at least 1 oz to be a grain component. A lot of times we put things on the menu that meet specific components like grain, fruit, protein, and so forth. If we’re menuing chips, it has to mean something. We can’t put it on the menu and still have to come up with a grain component.”
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A La Carte Bundling Challenges (continued)
Districts with a high percentage of students qualifying for free and reduced-price meals are less likely to bundle a la carte items frequently. These districts rely on the reimbursable meal for added revenue. While adding a bag of chips or a cookie may slightly increase ADP, these schools have little motive to include items that will not be considered reimbursable.
• “We haven’t even tried bundling our a la carte products. We are trying to increase the number of reimbursable meals, and that would defeat the purpose.”
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A La Carte Sales Drivers
Product is the primary sales driver for a la carte programs, particularly in secondary schools. Students are looking for products that are recognizable and tasty. After the item meets those criteria, price is heavily considered. With a small amount of discretionary funds available to students, FSDs aim to keep a la carte items under $1 as much as possible.
• “We sell products the kids see in the retail world, and we sell them at a competitive price while still making money on them.”
30%
24%
23%
8%
5%
2%
Trendy/on trend flavor profile
Quality of the product
Price of the product
Merchandising/Display
Healthfulness of product
Packaging of the product
A La Carte Sales Drivers
Q16: What most drives sales in your a la carte program? (select one)
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A La Carte Product Evaluation
A la carte programs – and menu items in general – continue to point in the direction of nutrition. Seventy-eight percent (78%) of operators look at nutritional components when reviewing new a la carte menu items. Profitability/margins (44%) and kid appeal (41%) round out the top three factors. While FSDs aim to keep price down, a la carte items are targeted for a 100% mark-up from original cost.
78%
44%
41%
25%
21%
21%
13%
6%
5%
Nutritional components
Profitability/margins
Kid appeal (i.e. flavor profile, dipable, etc.)
Low cost
Volume of sales
Fun and different from student perspective (i.e.creative packaging, new product idea)
Ease of use of product
Storage/handling
Shelf life
Important A La Carte Program Factors
Q19: What factors are most important when reviewing new a la carte menu items? (select up to three)
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A La Carte Challenges
More than half (53%) of K-12 operators’ biggest challenge is finding products that meet the wellness policies. Finding product that kids like (14%) and is cost effective (13%) are important, but those are secondary to meeting reimbursable requirements. Operators need to ensure product is meeting calorie, sodium, fat, and trans fat criteria, among others.
• “Our biggest challenge would have to be the lack of items meeting the strict guidelines which seem to be getting stricter by the year!”
• “Finding a nice variety of products that offer some nutrition (although not all items we offer do) that the students want to purchase is our greatest challenge.”
53%
14%
13%
7%
Finding product that meets wellness criteria
Finding product kids like
Finding product that is cost effective
Profitability/margins
A La Carte Challenges
Q18: What is the biggest challenge you face with your a la carte program in your schools? (select one)
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A La Carte Challenges
The a la carte program is viewed as an accompaniment to the main meal served. While a la carte programs offer importance in additional revenue to those that have them, the focal point is still the entrée and reimbursable meal.
• “We want them to complement the meal, not replace the meal. So what would be an add-on the students would like.”
• “We try keeping the focus on the meal and not the ala carte items. We want to derive additional revenue from these sales but not allow these sales to drive our program.”
Districts with higher percentages of students who qualify for free and reduced-price meals place a larger importance on wellness policies; however, these percentages vary dramatically from district to district. For those districts with high percentages, wellness policies become that much more important since they rely on government subsidies. Due to this, a la carte programs have lower importance amongst these districts from a profitability standpoint.
• “Because our district is 72% free and reduced, we fortunately do not rely heavily on a la carte revenue. The biggest challenge is finding products students want that meet wellness criteria.”
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A La Carte Challenges
The nutritional guidelines and challenges schools are facing with regard to reimbursable meals are forcing K-12 operators to strongly evaluate their a la carte menus. With budgets getting tighter, operators are beginning to cut items that do not add benefit to a meal. State education organizations, such as the Nebraska Department of Education, goes as far as to give recommendations for schools to offer grain-based products in place of potato chips.
• “Potato chips served with a meal are considered an “extra”, which means they do not contribute to the meal pattern. While it is acceptable to occasionally offer potato chips, we highly recommend that schools offer instead a grain-based chip such as corn chips or pretzels. With the majority of Nebraska schools implementing Enhanced Food-Based Menu Planning, many districts find it difficult to meet the 12 grains/breads requirement for grades K-6 and the 15 grains/breads requirement for grades 7-12. Potato chips are also high in fat and sodium; two nutrients that need to be limited in school meals.”
As mentioned earlier, laws and regulations differ between districts and states. Some K-12 operators have had difficulty offering products they want due to different policies handed down. While this has hurt sales of products such as packaged chips, it has opened up doors for other PepsiCo offerings like sports drinks and juices.
• “State law restricts beverages in a way that doesn’t make a lot of sense. I would like to be able to sell flavored waters and teas with little/no sugar but have to stick to only sugary electrolyte replacement beverages. We can only sell milk, flavored or unflavored, water with nothing added, juice drinks that are at least 50% juice with nothing else added and electrolyte replacement beverages.”
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A La Carte Challenges
• As a la carte items have their own set of nutritional guidelines to follow K-12 operators are fighting what students would like and what they are allowed to menu. In addition, many are receiving pressure from parents to offer only “healthy” items, though these are not what drives sales. Operators in the segment often have difficulty with this “fine line”.
• “While I try to choose healthier options, parents perceive it as "junk“. I need the revenue stream - they don't seem to understand that they control what their kids buy. If you don't want them to have it, don't give them the money.”
• “The biggest challenge is probably the perception of parents. Many seem to think that we are not doing what we should. They think we should only be offering the students the meal and nothing else. ”
• Operators are dealing with many challenges with a la carte programs, most of which come back to the health and wellness theme.Key Takeaway
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A la carte Selection Criteria
Availability and price point are the most critical criteria when selecting a brand for a la carte items. Fifty-eight percent (58%) of K-12 operators find a well known consumer brand to be extremely or very important. Manufacturer promotions provide a nice “value-add” but are not seriously evaluated when selecting suppliers.
Q21: How important are the following criteria when selecting a brand/manufacturer for a la carte items. Please use a scale of 1-5, where 5=extremely important and 1=not important at all.
• Whereas availability and price point are factors that PepsiCo should put the most focus on, rebates and promotions can offer a point of differentiation from competition.Key Takeaway
Importance of Selection Criteria
Top 2 Box
Availability 89%
Price point 88
Well known consumer brand 58
History using the product 51
Works in multiple dayparts/service applications 37
Rebates 31
Foodservice Rewards 25
Affiliation with buying groups/foodservice management firm 24
Manufacturer promotions targeting the school district 22
Manufacturer promotions targeting the end consumer 20
Manufacturer-sponsored reward program (i.e. Coke rewards) 12
Bundling with other products made by same manufacturer 11
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Packaged Snacks Suppliers/Brands
Frito Lay has excellent penetration in the K-12 segment. Ninety-two percent (92%) of operators provide Frito products, which is 14 percentage points higher than the next highest provider, General Mills (78%). PepsiCo’s other packaged brand, Quaker, is offered at 38% of school districts surveyed.
92%
78%
67%
54%
38%
29%
12%
8%
6%
Frito Lay
General Mills (Chex, Fruit Snacks, Bugles, NatureValley, etc.)
Kellogg’s (Cheez It, Keebler, Famous Amos
J&J Snackfoods
Quaker
Barrel O’ Fun
Little Debbie
Pringles
Kettle Foods
Packaged Snack Brands Offered
Q22: What brand(s) of chips/packaged snacks do you offer?
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Brand Satisfaction
PepsiCo’s brands are viewed very positively by K-12 operators. Quaker (95%) and Frito Lay (91%) are considered leaders in the packaged snack food category.
• “Frito Lay always keeps us informed. Whenever they have a new product, we always find out about it from them in a timely fashion.”
Q23: Using a scale of 1-5, where 5=extremely satisfied at 1=not at all satisfied, how satisfied are you with:
Satisfaction of Brands
Manufacturer/Brand Top 2 Box
Pringles 100%
Quaker 95
Frito Lay 91
J&J Snack Foods 91
Kellogg’s (Cheez It, Keebler, Famous Amos) 91
General Mills (Chex, Fruit Snacks, Bugles, Nature Valley, etc.) 87
Barrel O' Fun 72
Kettle Foods 67
Little Debbie 58
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Snack Display Equipment
Space constraint is the primary issue impacting the type of snack display equipment used in schools. In the serving line, counter space is typically tight and floor space non-existent. Operators prefer smaller racks to fit within the available area. In addition, theft is a heavy concern – particularly with older students in high schools. Due to both of these issues, display equipment is most often located near the point-of-sale.
• “Available space is the largest and sometimes only factor. We are limited on what will fit on the serving line. We want to keep things in the cashier's ‘line of sight’ to help control theft.”
• “Snack displays must have a smaller footprint as we locate these items close to the cashier to discourage theft.”
• “All displays are by cashiers. That way, the snacks don't grow legs and walk away.”
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Manufacturer Consideration
Schools districts are more interested in meeting wellness criteria, kid appeal and acceptable price points than specifying certain brands for a la carte items. Since public schools are state institutions, winning bids are often strictly price driven.
• “We don’t give special considerations to any manufacturers. We look at nutritional specs on a product, how it tastes, how it holds up, ease of preparation and also cost when deciding which product to purchase.”
The quarter of operators giving special consideration (27%) look for retail-friendly products that they have had past success with. Assuming all other criteria are met, a recognizable brand name offers a heavy advantage in the competitive marketplace. Frito Lay, along with other retail-heavy brands such as Kellogg’s and General Mills, are considered most often.
• “Preference is given to manufacturers who process commodities. Certain manufacturers like Kellogg's have instant recognition and we are able to take advantage of their marketing efforts.”
“We do use branding with Kellogg's and Frito Lay. Students are very savvy today and know about retail items, so we try and tailor that to fit our needs as well.”
Yes27%
No73%
% of operators giving special consideration
Q20: Do you give special consideration to specific manufacturers or brands for a la carte items?
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New Product Testing
Foodservice directors generally test new products on a monthly basis or as new products become available. Districts are constantly searching for new menu items to add that fit nutritional guidelines and taste profiles. Purchasing decision makers will often take note of items seen at food shows, trade magazines, and recommendations from foodservice distributors and brokers. The latter two play a large role in the sampling of new products.
• “I try to put one or two new items on the menu each month. I will go to food shows looking for new products. My distributors are always on the look out for something new they think I might be able to use and bring me samples.”
After the FSD is made aware of the new product, he or she will generally engage others to gauge interest in the product and to determine how well it will fit on the menu. Student focus groups, surveys or small promotions are just a handful of avenues directors use to empower the end-user.
• “The distributors and brokers bring the new products to me for me to cut. I also ask them for new products or ideas. I cut the new product versus an old product to see which is better. If something is new in the market, then I sample it out to students to get their opinions as well.”
• “Sampling occurs through the year as brokers tell us about new items. We have small sample groups who try the items and submit evaluations. We also have done large school wide samplings where they can enter a drawing for a prize upon submission of their feedback card. This is supported and conducted by the broker with minimal support from our staff.”
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New Product Launches
Planning for the next year’s menu generally begins in April or May – months before the end of the current school year. To accommodate this, directors recommend new product launches occur either before Christmas or between January and March.
• “As soon as you get to the summer, it’s too late to add anything to the menu because everything has already been planned. I like to see everything before Christmas so I can take all of the products I have seen into account.”
• “Our student taste testing occurs in March, so that would be an optimal time for a product launch.”
Foodservice directors have a number of suggestions to manufacturers in launching new products, many of which focus on the accessibility and transparency of nutritional information. As it is such as a pressing issue and often the first factor evaluated, information needs to be readily available and easy to find.
• “They need to make sure that nutritional concerns are taken into account when formulating new products, such as whole wheat and whole grain and the removal of high-fructose corn syrup and preservatives. I want to be able to see what the product offers me without having to look all over.”
• “Manufacturers should give us materials that have the nutrition facts as well as the pack size, etc. We always get the fancy marketing materials, but it doesn't have nutrition facts. All I want is one sheet of paper with all of the information.”
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New Product Launches (continued)
As described earlier in this section, samples are an important piece of the product testing puzzle. Manufacturers that go “above and beyond” to provide samples for students do not go unnoticed by key purchasing personnel and it also creates demand by the end-user.
• “When my district changed over to baked chips district-wide 6 years ago, the manufacturer came in with all of the marketing information and gave samples of all the chips to the students. That’s the type of thing we are looking for.”
While larger urban and suburban districts often seem to be “in-the-know”, districts in less densely populated areas tend to feel overlooked. Directors in certain areas – such as Idaho, Montana, and Wyoming – do not find out about new products until they have first been introduced to other regions of the country.
• “They can do a better job of informing us. There are many times that we don't know a product is out until we see it in retail or a student is asking about it. We like to stay up to date on what is available and the students love it when we are able to bring an item in that isn't available in retail. They enjoy being the ones to inform others.”
• “I’d love them to e-mail us, snail mail us and food show us. If we don't know it is available, we can't buy it.”
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National Rewards Programs
Just more than half of operators belong to a national rewards program; however, few of them are manufacturer sponsored. More than two-thirds of those responding “yes” subscribe to Foodservice Rewards. Twenty-eight percent (28%) are part of Cool School Café, the leading school foodservice marketing program. Kellogg’s and Schwan’s are the leading manufacturer-sponsored programs mentioned, but they represent less than 2% of all responses.
Yes 53%
No47%
Currently Redeeming Points from Manufacturer Sponsored Programs
Q24: Do you currently track/redeem points to any manufacturer sponsored programs (i.e. Coke Rewards)?
82
Agreement Statements
Manufacturer National Rewards programs do not carry much weight in the K-12 foodservice segment. While a quarter of operators report they are likely to specify manufacturers with national rewards programs, only 5% feel strongly about the sentiment. Foodservice directors would rather a manufacturer be part of a nationally funded program rather than create rewards that only benefit one brand.
Q30: To what extent do you agree with the following statements?
Top 2 BoxStrongly
agreeSomewhat
agreeNeither agree nor disagree
Somewhat disagree
Strongly disagree
I am more likely to specify manufacturers with national rewards programs 24% 5% 19% 41% 17% 18%
• Operators are not looking for manufacturer sponsored programs but instead prefer Vendors aligning themselves with programs such as Foodservice Rewards and Cool School Café.Key Takeaway
83
Frequency of Student Promotions
In-school promotions are not widespread in the K-12 community, primarily because foodservice directors and/or staff do not want to put the effort in themselves. Less than one of every five K-12 operators (18%) currently run manufacturer-sponsored student promotions more than “a few times a year”. Student promotions that generally are run in schools are nutrition based rather than focusing on an individual product.
• “Vendor promotions aren’t valuable because we try running promotions around health and wellness. For example, we will run promotions around calcium, but we generally prefer not to single out brands or vendors.”
• “We seldom do in-school promotions. We would prefer our manufacturers to be our business partners and work with us on projects. For example, one manufacturer worked with us earlier this year to provide colorful placemats for Breakfast in the Classroom programs and another provided the bags for one school that helped us expand the program.”
Once a week1%
2-3 times a week0%
2-3 times a month
3%Every few months
14%
A few times a year19%
Very rarely43%
Never20%
Frequency of Student Promotions
Q28: How often do you run student promotions sponsored by a manufacturer? (i.e. Manufacturer providing samples or giveaway items to students, point-of-sale materials, etc)
84
Student Promotions
As infrequent as student promotions are, 61% of operators claim they would be interested if a supplier organized or managed a promotion in a school in the district. The key for FSDs is the “management” of the promotion on the supplier’s behalf.
• “We expect manufacturers to help us with merchandising and signage. We don’t have time to take care of all of that and a promotion is far less likely to happen if we are responsible for managing most of the grunt work.”
• “Wow, I don't have too much time for promotions anymore. There’s too much else going on. I don’t really have a budget really either anymore either. If manufacturers would do this for us and supply us with it, I for one might use that.”
It is important to note, however, that some school districts have “red tape” surrounding some specific promotions. It is essential that manufacturers understand what will and will not be allowed in the schools.
• “There are a lot of restrictions for promotions that we are allowed to run. There are constrictions on gifts we can give away. We’ve had promotions in the past where we gave out key chains to the students and then found out we weren’t supposed to.”
Q29: Would you be interested if a supplier organized/managed a promotion in a school in your district?
Yes61%
No28%
Promotions are prohibited in
our district11%
85
Manufacturer Rep Engagement
The frequency in which foodservice directors expect to see a manufacturer rep for packaged a la carte items appears to be in line with actuality. Nearly a third (31%) of respondents prefer to see reps on an “as needed” basis, while more than half of K-12 operators expect to – and do – see a manufacturer rep “quarterly” or “a few times a year”.
• “Brokers typically bring manufacturer represents on office visits. I control the frequency of those visits but find them helpful once or twice a year. This acquaints the manufacturer with the reality of the business environment we work within. It gives a chance to get them to know us versus them talk about the products them represent.”
Frequency of Seeing Manufacturer Rep
Q25: How often do you see a manufacturer/broker rep for packaged a la carte itemsQ26: How often would you like to see a manufacturer/broker rep?
Frequency of Wanting to see Manufacturer Rep
86
Manufacturer Rep Engagement
Due to the abundance of manufacturers or vendors foodservice directors have relationships with, FSDs prefer not to see a manufacturer representative unless there is something new to share, whether it be a new product introduction or a change in nutritional or packing information. Foodservice directors do not have the time to constantly meet with representatives for the sake of “exposure”.
• “I want to meet with a rep when they have more information to share. I do not like meeting with them when they are just there to make their visit that is needed and they have no new information.”
• “The only reasons to talk with them directly would be to tell them what we need and find out what they are already planning to do for us. We both are looking for ways to benefit each other so meeting at least a couple of times a year at an event to talk and share ideas or concerns would be ideal for me.”
87
Profitability Importance
The profitability of school foodservice programs is important.
The profitability of our feeding program is very important. We have to pay back the school district in indirect costs, which they take every year. We support salaries, so we always have to have an efficient program.
– “We review profitability yearly. There might be 4-5 weeks that we work on budgeting. I get a report every week and look to see where we are spending wise.”
– “I can’t have too much profit because then I would be making money off of taxpayers. I have enough if I have equipment go down or have an emergency. But we’re not here to bail other folks out.”
.
88
Manufacturer Rep – Profitability Analyses
While profitability is important to the overall feeding program, K-12 operators are not interested in external help with profitability analyses. School districts prefer to handle accounting responsibilities internally and do not need manufacturer assistance in analyzing profitability of menu or a la carte items. Many operators in the segment have a point of sale or accounting system in place to handle those needs and don’t believe manufacturer representatives would be able to offer support.
• “We have our own system to crunch those numbers. I would think it would be tough for a rep to come in here and understand what we do. I don’t think it’s worth their time or ours to go through that process.”
• “Profitability needs to come from us. We have vendors that do that all the time. Coca Cola is one of them and it doesn’t mean anything because their standards aren’t our standards. It doesn’t help at all.”
Where school districts would welcome help is positioning a new product to make it more profitable. Directors are open to any information, materials, or product placement advice that would help boost sales.
.
Top 2 BoxStrongly
agreeSomewhat
agreeNeither agree nor disagree
Somewhat disagree
Strongly disagree
The profitability of our school feeding program is important 84% 59% 25% 8% 1% 7%
Q30: To what extent do you agree with the following statements?
89
Parent/School Flyers
Nutritional information provided by manufacturers is almost unilaterally being used on a school or district web site. This allows all interested parties to be able to access the information at their own convenience.
• “Parents are so busy they do not have the time to read things like this. We post our nutrition information on our website if parents want to see it.”
• “We put our nutritional information on our web site so parents and school nurses can use them.”
• “Every department in the district has a link on the district website. I post the information on the School Nutrition site.”
Though not as common, some schools utilize manufacturer-provided nutritionals in monthly newsletters or other mailings to students’ homes in addition to posting the information on the internet.
• “We send home information on the back of each monthly menu. We sometimes incorporate some of the good things we use as parts of our breakfast and lunch programs.”
• “We put the nutritional facts on our web site. I will occasionally use vendor information from their brochures in my article for the school newsletter.”
90
Manufacturer Web Sites
With busy schedules, few foodservice staff members have the time to search web sites looking for new products. Most foodservice directors frequent manufacturer web sites often as 2-3 times per week and as sporadic as once every few months. Directors are typically searching web sites on an “as needed basis”, exclusively for information on nutritionals and allergens.
K-12 operators are more likely to visit web sites when it is user – or segment – friendly. Those working with primary and secondary schools prefer web sites that have specific links or portals to an education part of the site. This provides easier, more efficient navigation to find answers to nutrition or allergy questions.
• “I don't have any methods of evaluating websites but I visit those that are user friendly. This means that I don't have to dig through windows and tabs of information to find what I need. Simplicity in organized information is important.”
• “I check manufacturer web sites at least once a week. It’s easy to do. I really like the ones where the manufacturer has a special area for their school products so I don’t have to dig through everything else. This week, I had a school nurse call me with a diabetic student in her office and ask how many carbohydrates were in an East Side entrée product. I typed the manufacturer name into Google and it was very easy to find.”
As always, FSDs want to be informed of new product activity within the segment. Sending reminders – preferably by e-mail – is a useful and effective way for manufacturers spreading the word.
• “Email reminders help me to remember to take a look at the websites. Otherwise, there are so many manufacturers out there, it’s near impossible to visit them all.”
• “E-mail notices with links to the web site when new information is added.”
91
Manufacturer Web Sites
Smaller school districts tend to seek out manufacturer web sites more often than larger ones. While nutritional information is still the priority, operators in rural and less-populated regions would like to see more materials and information provided on the site.
• “A link for K-12 directors that could have information on any new regulations that are coming out and information about new products that are coming out would be extremely helpful. A one-stop shop on a web site would really make things easy on me.”
• It seems I am on some food manufacturers website every day. With impending regulations coming, I am looking at websites for nutritionals and calorie counts and if it fits into a menu I want to try to serve. Most have been easy to maneuver on but some, not so much.”
• “I do visit websites on a regular basis. I always consider the nutritional information, pack size, distributor, and if possible the cost of the item as well as any rebate or promotion that may be taking place.”
92
Competitor Web Sites
While PepsiCo does not have a specific K-12 link on its web site, its two largest competitors in the segment do. The chart below highlights key components of the Kellogg’s and General Mills web sites devoted to the K-12 foodservice segment.
Manufacturer Web site characteristics•Provides an “operator benefit” for recommended brands and products, including a section specific to a la carte items
•Displays images of merchandising equipment
•Offers “Nutrition Education” to visitors, including links to several Kellogg’s-related sites
•Includes recipes specific to K-12 segment
•Offers support tools, including recipe ideas and options that can be considered part of a reimbursable meal
•Provides a product guide specific to K-12 operators
•Provides product sales brochures
•Includes links to K-12 specific web sites
•Recommends products to serve
93
Web Site Improvements
Foodservice directors are primarily searching manufacturer web sites for nutritional information, such as fat, calories, sodium, etc. Aside from these essentials, 56% of K-12 operators feel an ingredient list posted online would be most beneficial, especially with the increase in student dietary demands, such as allergies and the need of gluten-free products. Nearly a quarter (23%) believe information on USDA regulations would be helpful, while recipes and promotional materials have importance but secondary in nature to those already listed.
56%
23%
11%
7%
2%
Ingredient list/allergens
Information on USDA regulations
Recipes/use of product
Promotional/marketing materials
Case pack sizes
Web Site Characteristics
Q27: Aside from nutritional information, which of the following criteria would be most helpful for a manufacturer to have on its web site? (select one))
94
Getting information to schools
As has been iterated previously in this report, the internet is the primary avenue of resource sharing between the school district and parents. This is no different for streamlining information between the district headquarters and the individual schools. District web sites generally have all nutritional information posted for primary and secondary schools to access.
Throughout the interviewing process, K-12 operators provided suggestions on how manufacturers can better assist the communications efforts to school officials. Aside from posting information online and providing easily accessible information – such as user-friendly download forms – foodservice directors would like manufacturers to keep them informed on product changes.
• “Manufacturers and suppliers need to do a better job informing us when they change things so we can make adjustments. Manufacturers will make changes to their package size and the nutritionals will change, but we won’t ever know about it until we have to look it up for one reason or another.”
95
Better Partner
Communication is the key to a successful partnership between the school district and the manufacturer. This communication does not necessarily mean face-to-face interactions; in fact, communicating via e-mail is often preferred. Foodservice directors do not have time to meet with all of their vendors on a regular basis, so finding out about new product information or changes in nutritionals online is sometimes preferable.
• “They can send me e-mails that I can look at when I have time. I don’t have time to see everyone and all of the new products that are available.”
• “They need to be able to provide us with the information we need or have it on a web site so we can access it with out having to contact them. I don’t have time to be reaching out to all of my vendors when I need to find something out. I need them to let me know when something is new.”
• “The bottom line for me is to stay connected with information and products that fit the current guidelines. Let the operator control the flow of communication and the relationship.”
It is critical that at the very minimum, manufacturers know and understand the federal wellness policies and regulations. To be a better partner, sales representatives should understand the intricacies and differences between districts and states and be able to communicate how their products can meet mandated guidelines.
• “Manufacturers need to continue to develop new products that will help us meet the new upcoming regulations and market those products.”
• “Reps and brokers should be trained to inquire about a district's wellness policy. It may more restrictive than state or federal laws.”
96
Better Partner (continued)
While most school districts reportedly do not run many promotions, they are not averse to the idea as long as manufacturers provide assistance. Suppliers that come to the table with ideas and are willing to provide the majority of the execution can be valuable vendors for the district, helping create a strong partnership between the parties.
• “We would prefer our manufacturers to be our business partners and work with us on projects. For example, one manufacturer worked with us earlier this year to provide colorful placemats for Breakfast in the Classroom programs and another provided the bags for one school that helped us expand the program.”
• “I also think the manufacturer could provide us with promotional materials when we are purchasing their product - especially if it was just awarded on a bid. It would only benefit them if we increased sales on their product. Receiving materials in the summer and winter would be helpful - we would have them for the start of school and after winter break. We are always looking for posters, table tents, etc. to enhance the appearance of the serving line and cafeteria. Maybe they could work with their brokers to accomplish this.”
• “I think they could better partner by providing promotions that didn't have minimum quantity purchases and didn't require us to submit invoices. The manufacturers hire brokers that could provide this information to them. I don't typically participate in minimum purchase promotions unless the broker takes on that responsibility. I just don't have the time to "babysit" these types of promotions. What would be great is straight rebate/cash back programs that are automatically generated.”
97
Agreement Statements
While sixty-one percent (61%) of K-12 operators believe budget constraints have had a major impact on purchasing behavior in the past two years, only 16% strongly agree with the statement. Many schools feel pressure from the budget; however, it appears to have more of an effect on labor issues than purchasing behavior.
Q30: To what extent do you agree with the following statements?
• Though budgets have altered purchasing behavior in the past 24 months, the impact has not yet been severe.Key Takeaway
Top 2 BoxStrongly
agreeSomewhat
agreeNeither agree nor disagree
Somewhat disagree
Strongly disagree
Budget constraints have had a major impact on my purchasing behavior in the past 24 months 61% 16% 45% 28% 9% 2%
98
District Budget Constraints
The majority of FSDs interviewed for this study report that their foodservice department is self-sustaining. Budgets generally do not cross over to other departments within the district, even during the hardships of the recession. Since most departments are self-supporting, budget constraints have not been an issue in the past 24 months. However, K-12 operators anticipate the budget influencing purchasing behavior in the coming school years. Items that are not necessary or offer nutritional value to meals may be the first to go.
• “Going forward, we'll have to be more conscious of what we REALLY need. I have constantly emphasized with the office staff & managers the need to be frugal. We are used to it.”
• “We have begun to limit some of the extras we used to have on our menus that don’t contribute as a meal component. The cookies, cake or really any dessert are the first items to go.”
Naturally, as the budget becomes a larger issue going forward, the importance of cutting costs grows as well. Schools are holding off on fixing old equipment, purchasing new equipment, and hiring new staff members in anticipation of budget constraints.
• “We are patching equipment together with duct tape. We aren’t going to replace any equipment until it dies!”
• “The district budget has not impacted purchasing nearly as much as it has impacted staffing. We are on a freeze until things get better, and who knows how long that will be?”
.
99
District Budget Constraints (continued)
While the budget has not necessarily impacted purchasing behavior in the past, constraints have had an influence on the types of promotions run by school districts. As budgets become tighter, foodservice directors are less likely to purchase promotional materials but rather use available resources to convey promotional ideas. Certain manufacturers provide posters and point-of-sale material to assist in efforts. Other districts make use of available resources, such as Cool School, Foodservice Rewards or Healthier US Food Challenge (HUSSC) for student prizes and giveaways.
• “I think the posters we receive from certain manufacturers, such as Schwan’s and Kellogg’s, are very effective. Not only do they show the product but some exclaim the nutritional benefits of their products. I also get posters from SUDIA and various food promotion groups such as the pear association, beef, etc. With a limited budget, the posters help to brighten the cafeteria, convey information, and encourage eating of the various foods.”
• “Since our budget is limited, we do not purchase much in the way of promotional items. I use my Cool School points for student prizes, etc.”
.
100
Continuing Foodservice Efforts
With the impending regulations and budget issues, price is becoming even more important in purchasing decisions. Foodservice directors plan to put their efforts into a number of different areas:
1. Buying local2. Examining packaging options3. Reducing waste4. Reducing/cutting labor costs5. Using government provided subsidies
• Buying local
• “We are trying to purchase more items from our local farmers, dairies and other stores. Not only does this help us in our sustainability efforts, but with fuel prices increasing, it will really help us look to cut some costs.”
• Examining packaging options
• “We continue to assess our products and search for alternatives that may provide us with the nutrient and quality that we expect. We are constantly assessing our packaging to see if there are more cost effective alternatives available.”
• “We are trying to be more sustainable in our operation so we are getting away from individual items like yogurt cups. We offer it in bulk and the cost is actually less. Portion control and menu selections can help the bottom line.”
101
Continuing Foodservice Efforts
• Reducing waste
‒ “We are trying to control food cost and be more aware of waste. We are making efforts to reduce our waste significantly because essentially, we’re throwing money in the garbage.”
• Cutting/Reducing Labor costs
‒ “We are limiting additional work hours and have required staff to obtain prior approval before working beyond their scheduled shift. This is rather difficult to do, but an essential step for us.”
‒ “We are cutting labor hours by not replacing retiring staff.”
• Using government provided commodities
‒ “We are trying to make greater use of entrees from commodity. Since we receive commodities for free, this helps us with costs.”
‒ “We are managing purchases through the bid process and making good use of commodities through processing with various manufacturers.”
102
Raise Prices
According to Section 205 of the 2010 Child Nutrition Reauthorization Act: Equity in School Pricing, many school districts will be forced to raise prices of school meals beginning next school year. Due to the new law passed by President Obama, the cost of the meal is required to be equal or above the federal reimbursement – which will be at $2.74 following a six-cent increase. Since schools are only permitted to raise prices a maximum of $0.10 per school year, prices will continue to jump on an annual basis until this federal reimbursement level is met.
Even many districts that already meet the required minimums have impending price increases. With the rising cost of food and the pressure to serve more fresh fruits and vegetables, the price on many of these fresh items is affected by everything from weather to shipping costs. Schools are disappointed that price increases are ultimately needed; however, there is little they can do but hope that participation will not be too negatively affected.
• “We will be raising prices starting next year after 8 years of no increase. We are expecting a small decrease in paid meals, but hopefully we can pick up more meals from free and reduced-price meals.”
• “As it looks, we will be forced to raise the price of lunch. I anticipate that this will decrease participation among paid students. But, because food cost has increased for everyone, we will have to focus our marketing efforts around the value of school meals.”
• “Everything is going up except our budget. The economy has taken a toll on us and our budgets. Being able to purchase a higher-priced item doesn’t mean quality, but sometimes to get quality you have to pay a higher price. That’s a difficult thing for us to decide. What items to purchase and have less quality for. With us having to raise prices, I’m afraid that’s going to hurt our participation.”
103
Actions Needed
An increase in price of school meals may hurt more affluent districts than others. Students who are approved for free or reduced-price meals will ,
“I have ot raised the lunch prices in 4 years nor the breakfast prices in 3 years. I have already talked to my superintendent about increasing lunch by $0.25 next year. In fact he approached the subject before me. He recognizes the impact of the possible new regulations. With only 34% F&R raising the price means less participation for me - at least at first.”
Items not mentioned:• Free and reduced price and how it affects decisions• Commodities and how they are used and getting them for free
104
Agreement Statements
First Lady Michelle Obama
Q30: To what extent do you agree with the following statements?
Top 2 BoxStrongly
agreeSomewhat
agreeNeither agree nor disagree
Somewhat disagree
Strongly disagree
Michelle Obama’s “Let’s Move” program has had an influence on our foodservice operation 30% 8% 22% 38% 26% 6%
105
Changing Menus
While 39% of operators report that changing menus due to new regulations has negatively impacted participation in the foodservice program, only 3% strongly agree with the statement. Many districts have not yet made many changes; however, schools are concerned about participation if impending policies are pushed through for the upcoming school year.
Q30: To what extent do you agree with the following statements?
Top 2 BoxStrongly
agreeSomewhat
agreeNeither agree nor disagree
Somewhat disagree
Strongly disagree
Changing menus due to new regulations has negatively impacted participation in the foodservice program 39% 3% 36% 37% 15% 9%
