Canteen Proposal

Need/Desire for a canteen

In order to determine the desire for a canteen, a number of opinions have been sort and a survey of the parent community has also been undertaken. The survey received 188 respondents out of a parent community of 400. Although there has not been any negative comments about the lack of a canteen by the parent community to the school, the students have noted to the school council they would like a canteen and the survey results were generally very supportive of having a canteen operate at least part of the week. The survey results are included as Attachment 4.

Structures

If the school was to operate a canteen there are three main ways to structure the canteen:

1. Volunteers only (School or P&C operated). This option has not been assessed as part of this proposal. As a large portion of the school has working parents (as evidenced by OOSH usage) who would be unable to volunteer. Past experience as well as other research (such as Birchgrove experience and information available from Healthy Kids Association) also suggests that this option may be difficult to operate successfully

2. Volunteers with Paid Canteen Manager (School or P&C operated)

Pros Cons Quality control Control over menu Someone responsible for day to day

operation Not relying solely on volunteers If canteen makes profit, goes to school Volunteers are only needed to prepare

and distribute food, not for all the administrative work as well

Lead time to develop policy and procedures Need to ensure canteen makes enough money

to cover a wage Still quite reliant on volunteers Need to educate people about the need for

volunteers even though have a paid employee Food wastage issues if only open 2 days Set up costs (utensils, containers etc) Financial risk if makes a loss Management of an employee – sick and annual

leave cover, replacement and potential gaps in service if manager leaves.

The next steps for this option are: Develop Canteen Policy Determine hours of operation Develop menu Develop procedures (ordering, timelines, portion controls, volunteers) Determine financial record keeping methods Marketing considerations Employ Manager (job description, advertise,interview)

3. Licensee

This would transfer the risk of operating the canteen to the operator of the canteen. They would pay rent or a license fee to the School. As the school ‘owns’ the property, any contract with a third party needs to be via the school, not P&C and therefore we would need to go through the tender process for this option.

In investigating this option we contacted The School Canteen as they provide a canteen service to nine other inner west schools. They currently operate from Kegworth, Ashbury and Dobroyd Public Schools (ie pay rent) and deliver and distribute for the other six.

Pros Cons No financial reporting burden on P&C No financial risk (ie if canteen makes a

loss) Known source of income (from rent) Still have some control over menu Don’t need to organise volunteers Principal maintains control over all

aspects of the licence agreement Able to choose an applicant experienced

in operating canteens or a food business

Paperwork Time frame for approval from Dept of

Education (8+ weeks) Potential to lose out on profit if turns out to be

successful Potentially won’t be accepted into the school

community

The next steps for this option are: Request Education Department – Schools Finance approval for tender process Prepare Canteen Licence Agreement and Package for prospective applicants (can charge an

application fee) Advertise Assessment of applications Send successful applicant details to Schools Finance for approval Sign Canteen Licence Agreement

Issues to be considered in selecting a structure

Issues Raised

There were a number of issues raised in the canteen survey, the P&C and School Council. Each of these can be mitigated by either structure chosen to operate the canteen.

Issue MitigantCanteen available for fundraising activities eg sushi days once a week/fortnight/month

85.5% of survey respondents indicated they would use a canteen between 1-5 times week. So a 2 day per week canteen would allow for other activities still to occur

Children having money at school Limit orders to on-line or bag orders only ie children will not be able to purchase food over the counter

Children late for class/lining up all of their break time

As above

Creation of excess of rubbish The School Canteen only use biodegradable and recyclable packaging. This will be a non-negotiable requirement for all applicants as part of the tender process.The same packaging would be sourced for Canteen Manager Option, however would increase costs substantially. *See below for discussion on rubbish

*Rubbish The school uses Remondis for the removal of rubbish. The school has a general waste and

mixed recycling bins. As lunch is eaten predominantly in the classroom a small mixed recycling bin would need to

be available in each room. A small number of larger recycling bins would also be placed in the playground.

The Green Team could be enlisted to help spread the message regarding the correct usage of the bins.

Canteen Committee will need to engage further expertise and advice from Remondis in relation to costs and optimal collection solutions.

As a result we believe a two day a week canteen providing lunch and recess orders with on-line ordering would be the best way to proceed.

Financial considerations

On the basis of a two day a week canteen option, the following sets out as estimate of the financial impact of each structure.

Volunteers with Paid Canteen Manager (School or P&C operated)

The cost of employing a canteen manager on a permanent part-time basis two and a half days per week is approximately $20,000 including all associated on-costs.

Attachment A provides a very high level analysis of the levels of orders required to breakeven as well as some sensitivity analysis over a number of different order levels over 40 weeks of operating. The table below summarises the results of this analysis.

Weekly numbers Breakeven Predicted 25% loss 25% gainLunch orders 120 200 150 250Recess orders 52 80 60 100Net annual surplus -$ 13,504$ 1,062$ 22,144$

The analysis shows to breakeven the canteen would need to receive 120 lunch and 52 recess orders over the two days per week at an average cost of $6 per lunch order and $3 per recess order. Attachment 3 includes the Term 4, 2013 menu and pricing from The School Canteen which supports these average assumptions. These prices were also the averages indicated by parents in the canteen survey. In terms of number of orders the previous canteen operator, Cafe Rozella, was receiving an average of 60 orders on a Thursday and 120 orders on a Friday, so it is not unreasonable to achieve these levels.

On predicted levels the canteen could make a small surplus of $13.5k, however if levels are lower there is little ability to offset the income shortfall and thus the P&C would need to underwrite the canteen for any potential loss being no more than $20k.

Licensee

The School Canteen currently pays rent of $1,100 per quarter to Dobroyd Point Public School which has approximately 300 children for a five day a week canteen. The pro-rata fee for a two day a week operation would be $1760 per year, which could assist in covering the cost of any additional waste and recycling costs and/or on-line ordering set up and administration costs.

On-line ordering

On-line ordering allows parents/carers to submit orders at any time up to 8:30am on the day of the orders being placed with most providers.

There will be costs to parents of operating an on-line ordering system. Two providers of on-line ordering systems have been contacted in regards to provision of on-line ordering – Schools 24 and Flexischools. The flexi-school model keeps the monies in trust but as a result charges the school a 3% transaction fee, while School 24 appears to potentially involve more administration on the part of the school in administering funds but no on-going transaction fees are charged. The table below sets out the charges that have been advised by each provider.

Schools 24 FlexiSchools

Top Up Fee Credit Card 1.50% 0.29$ Top Up Fee Direct Deposit -$ Top Up Fee Pay Pal 0.30$ Per order fee 0.25$ 0.25$

Set Up 250.00$ 350.00$ Transaction fee -$ 3%Estimate transaction fee -$ 1,728.00

School/P&C cost

Parent Costs

Under a licensee arrangement – it is likely that the tenderer will have a preferred online supplier that integrates with their other operations.

Recommendation

From the discussion at the P&C in November there does not appear to be an appetite to take risk in operating a canteen. However there is clearly a portion of the school community who is interested in having a canteen. We also acknowledge that any structure entered into will create more work both in administering and managing a canteen and it associated issues for all of the staff.

After consideration of the issues raised and discussions both at the P&C and School Council, the following proposal is put forward for consideration of the P&C and the School in regards to the operation of a canteen at Rozelle Public School. The canteen should be:

Open 2 days per week Online ordering with a solution for the 30 families without internet access TBD Recess and lunch orders only A trial may not be possible as a provider may not want to invest the time and money

associated in building the profile of the canteen only to have to withdraw or be subject to a full tender. Therefore a one year contract with option to extend may be a better option with operation commencing in Term 2, 2014.

Actions arising from recommendation

Discuss proposal with school Have The School Canteen present at February 2014 P&C meeting so that everyone can

obtain an understanding of what they can provide

If the school consents to move forward

Ask for volunteers to help with preparation of tender documentation and sit on tender assessment panel;

Start the tender process.

Attachment 1

P&C Run Canteen - Canteen Manager and volunteers

IncomeOrders

per dayDays/ Week

Total Orders Av. Price Per week

Weeks operating Total Weekly

Lunch orders 60 2 120 6.00$ 720.00$ 40 28,800$ Recess orders 26 2 52 3.00$ 157.35$ 40 6,294$

877.35$ 35,094$ 877$

Costs HoursDays/ week

Total Hours Rate Per week

Weeks operating /

paid Total

Canteen Manager 7 2.5 17.5 21.82$ 381.85$ 52 19,856$ 496$

Food costs - 40% 40% 350.94$ 40 14,038$ 351$ Waste removal 30.00$ 40 1,200$ 30$ Total cost 35,094$ 877$

Potential surplus 0$ 0$

Per day Days/wkTotal

Orders Av. Price Per weekWeeks

operating Total WeeklyIncome

Lunch orders 100 2 200 6.00$ 1,200.00$ 40 48,000$ Recess orders 40 2 80 3.00$ 240.00$ 40 9,600$

1,440.00$ 57,600$ 1,440$

Hours Days/wk Rate Per week

Weeks operating /

paid Total Costs

Canteen Manager 7 2.5 17.5 21.82$ 381.85$ 52 19,856$ 496$

Food costs - 40% 40% 576.00$ 40 23,040$ 576$ Additional Recycling 30.00$ 40 1,200$ 30$ Total cost 44,096$ 1,102$

Potential annual surplus 13,504$ 338$

Breakeven Point

Prediction

Canteen manager assumed to be permanent part-time and will be paid all year – all on-costs have been included superannuation, workers compensation, annual leave and long service leave.

Assumes all other labour required are school community volunteers

Attachment 2

P&C Run Canteen - Canteen Manager and volunteers

IncomeOrders

per dayDays/ Week

Total Orders Weekly

Orders per day

Days/ Week

Total Orders Av. Price

Total per week

Orders per day

Days/ Week

Total Orders Av. Price

Total per week

Orders per day

Days/ Week

Total Orders Av. Price

Total per week

Lunch orders 60 2 120 100 2 200 6 1,200$ 75 2 150 6 900$ 125 2 250 6 1,500$ Recess orders 26 2 52 40 2 80 3 240$ 30 2 60 3 180$ 50 2 100 3 300$

877$ 1,440$ 1,080$ 1,800$

Costs HoursDays/ week

Total Hours Per week Per week Per week

Canteen Manager 7 2.5 17.5 496$ 496$ 496$ 496$

Food costs - 40% 351$ 40% 576$ 49% 527$ 40% 720$ Waste removal 30$ 30$ 30$ 30$ Total cost 877$ 1,102$ 1,053$ 1,246$

Potential surplus 0$ Total weekly surplus 338$ Total weekly surplus 27$ Total weekly surplus 554$ Weeks operating 40 Weeks operating 40 40 40 Annualised 0$ Annualised 13,504$ Annualised 1,062$ Annualised 22,144$

Breakeven Point Prediction 25% loss of orders 25% gain of orders

Attachment 3

The School Canteen Term 4 2013 Menu and Pricing

PASTATraditional Italian pasta at its best Plain Pasta (Gluten Free Option Available*) $3.30Napolitana (Gluten Free Option Available*) $4.00Bolognese (Gluten Free Option Available*) $4.50Creamy Pasta (Gluten Free Option Available*) $4.50Beef Lasagna $5.50

* Gluten Free Pasta $1.00 extra

PIZZA Pizza bases made from scratch using fresh ingredients topped with house made tomato sauce, your choice of topping and mozzarella cheese that melts in your mouthChoose from Margherita, Ham, Mushroom or Ham & Pineapple $4.00

VEGETERIAN Vegetarian Lasagna $5.50Vegetarian Wrap (Fresh veggie pattie with lettuce and mayo on a tortilla bread) $4.50Sushi – Teriyaki Tofu & Cucumber rolls $4.40

SUSHISushi Nori rolls made to order dailyChicken Teriyaki, Cooked Tuna, Avocado or Cucumber $3.80

LUNCHTIME FAVOURITES

Homemade Sausage Rolls with tomato sauce (2 to a serve) $4.00Chicken Strip Wrap with lettuce and mayo $4.80Crumbed fresh Chicken tenderloins (2 to a serve) $4.00

SANDWICHESMade with fresh ingredients to order on your choice of wholemeal or white bread we do not use butter unless requested (gluten free bread available for $1.00 extra)Vegemite or Jam $2.20Cheese $2.50Chicken, Ham or tuna $3.50Salad Sandwich $4.00Egg Sandwich $3.50Extras; Cheese, Mayo, Lettuce, tomato, bread roll, tortilla bread, toasting $0.50

SALADS

Garden Salad (lettuce, tomato, cucumber and grated carrot) $2.50Add Shredded Chicken Breast, Tuna or a fresh hard boiled egg to your salad for $1.00 extra

$1.00

SNACKS

Popcorn $1.00Cheese & spinach tortilla $2.50Cheese Tortilla $2.00Garlic Tortilla $1.50Snack Pack- fresh carrot and cucumber sticks served with crackers and cheese $2.50Banana $1.50Fresh Mixed Berry Yoghurt Cup $1.50

DESSERT

Apple Slinky $0.50Seasonal Fresh Fruit per piece $0.80Frozen Grape Cup $1.00Fruit Salad $3.50Biscuit of the day (2 to a serve) $1.00Muffin of the day $1.50Strawberry jelly cup $1.50Chocolate Pot (low fat house made chocolate custard) $2.00Smooze Frozen Ice Treat (Mango, Pink Guava, Pineapple or plain coconut) $1.50Gelato – freshly made gelato assorted flavours each week.Flavours include Vanilla Lemon, Milo and Caramel

$2.00

Juicies – 100% fruit juice frozen available in Apple , apple and blackcurrant or Tropical Flavour

$1.50

DRINKS

Water (300ml) $1.00Plain Milk (250ml) $1.00Flavored Milk (250ml) Low fat milk mixed with fresh house made Chocolate or Strawberry flavour

$2.00

Nudie 100% Kids Fruit Juice (250ml) Orange, Apple, Real Lemonade or Tropical $2.50

If you have any queries regarding our menu, special dietary needs or would like to suggest an addition to our menu please contact us on

0416 786 603 or email: orders@theschoolcanteen.com.au

Thank you and we look forward to being of service to your family.

www.theschoolcanteen.com.au

Attachment 4

Canteen Survey Data Summary

Number of respondents – 188

Number of children at school in 2014

Response

PercentResponse

Count0 0.5 11 53.2 1002 42.6 803 3.7 7

188

Breakdown of what year the respondents’ children would be in for 2014

Year

Count

% of total

% of total by stage

P 6 2.17K 52 18.771 55 19.862 52 18.77 59.573 34 12.274 34 12.27 24.555 20 7.226 24 8.66 15.88

67% used the canteen before, mostly for lunch (97.5% of respondents) and recess (63.9% of respondents)

33% had not used canteen before. Most of these indicated it was because it was their first year at the school this year, and the canteen had not been available.

Reasons for ordering in the past

Answer Options Response Percent

Response Count

Treat for child 76.2% 93Convenience 83.6% 102Break for parent 68.0% 83Nutritional Variety 18.0% 22Other (please explain) 4.1% 5

answered question 122

Frequency of use in the past

82.7% respondents used the canteen at least once a week or more often.

Answer OptionsRespons

e Percent

Response Count

4-5 days/week 5.7% 72-3 days/week 25.4% 311 day/week 51.6% 63Fortnightly 11.5% 14about once a month 4.1% 5about once a term 1.6% 2less frequently 0.0% 0

answered question 122

What is important to you when ordering?

People are prepared to pay more for high quality, nutritional food.

Price

Menu

Var

iety

Food

Qua

lity

Nutri

tiona

l V...

Ease

of U

se/O

...

Hour

s of O

per..

.

Paym

ent O

ptio

...0

50100150200

What is important to you when ordering from a canteen? Rank the following attributes from most important to least important.

FirstSecondThirdFourthFifthSixthSeventh

How often would you use the canteen?

85.9% of respondents would use the canteen at least once or more often per week.

Answer Options Response Percent

Response Count

4-5 days per week 6.9% 122-3 days per week 31.2% 541 day per week 47.4% 82fortnightly 9.2% 16once a month 3.5% 6once a term 1.2% 2less often 0.0% 0Never 0.6% 1

answered question 173

How important is having a canteen?

Answer Options

Very import

antImport

ant

Somewhat

important

Not at all important

How important is having a canteen

57 60 44 13

Price Expectations

Average Maximum Minimum MedianLunch 6 12 3 5Recess 3.23 10 1 3

Canteen Opening Expectations

The majority of people don’t expect the canteen to be open every day.

Answer Options Response Percent

Response Count

a. 1-2 days per week 22.4% 39b. 3-4 days per week 46.0% 80c. 5 days per week 31.6% 55

answered question 174

Ordering Preference

Answer Options Response Percent

Response Count

a. Online in advance 47.1% 82b. Online on the day 29.3% 51c. In Person 23.6% 41

answered question 174

Other Comments

Responses were broadly catergorised as follows:

CategoryTotal

Community 17Don’t want one 3Food/Menu 40Frequency 1Packaging 1Payment 4P&C 2Quality 1Size of school 4Structure of canteen 6Willing to volunteer 8Grand Total 87

“I would expect that a school the size of Rozelle Public should have a canteen.”

“It is an important aspect of the school community to have a canteen - supports parents and is fun for the kids”

“We really miss the school canteen - it provided a break from the monotony. I dont mind paying more money than previously so that it is financially viable.”

“Would support if canteen re opened and purchase once a week”

“I would rather have a canteen that operates less days per week that has quality of food and menu diversity as opposed to one that operates all week with lesser quality food.”

“Having a canteen is worthwhile but difficult unless it is professionally run (ie not relying on volunteers)”

“I think it's really important that there be no soft drink or other really sugar heavy food and drink options.”

” the canteen is a great addition to the school and makes the life of working parents so much easier, we appreciate the efforts and the people working/volunteering behind the scenes! Thank you!”

“Also, the school is not well prepared to deal with the rubbish and need for recycling the canteen generates. I would think that needs to be addressed before the canteen operates again - it is crazy for all the cardboard boxes that hamburgers were sold in, were then thrown in the bin along with milk cartons, etc.”