Re: School Lunch Prices Increase -- Dracut Information Resource Forum

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Date Posted: 15:11:51 10/03/01 Wed
Author: Dennis Williams
Subject: Re: School Lunch Prices Increase
In reply to: john 's message, "School Lunch Prices Increase" on 15:00:45 09/28/01 Fri

Dear John,

I don't know too much about this specific price increase, but I do know the following:

1) Cafeteria revenue and costs are recorded in a special fund, with the intent to break even on an operational basis (meaning that all of the current operating costs have to be covered, such as wages, supplies, etc. in addition to the food cost). Now, 14% seems like a low food cost for a bottle of water ($5/35 units compared to the $1 selling price), but that may not include shipping. My point is, you can't just compare the food cost to the selling price; you have to include all the other costs. And there may be other products where the food cost percentage is much higher. Overall, a 25% to 30% food cost as a percentage of selling price is not real low.

By the way, this cafeteria fund is audited by outside accountants every year to ensure that the fund does not operate with a deficit -- or too large a surplus.

2) Unless I'm in my own kitchen (opening a box of macaroni and cheese or something like that), I can't feed anybody of any age for $1.25. Certainly not having it prepared and served by someone else. The reason that the prices are as low as they are is because, to some extent, they are being subsidized by taxpayers, most of whom, like me, no longer have children in the system. That's because even though the prices have to cover current operating costs, they do not have to cover the cost of the building in which the food is being served. If the cafeteria fund had to break even on a fully absorbed cost basis, including paying for things like mortgage principal, interest and property taxes, the prices would be even higher.

3) If students can't afford to eat at the cafeteria, then perhaps they can consider doing what I did when I went to school � bring a bag lunch. Oh, and be sure to fold the bag up for reuse, and save that tin foil! (Okay, yes, my mother grew up during the depression.)

Your concerns may be justified. As I said, I don't know the specifics of the price increase. But I did want to lend a little perspective. Your use of the terms "outrageously high", "unnecessary', and "ridiculous" don't carry a lot of weight unless you can better explain your position.

Dennis

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