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K-12 Foodservice Assessment. Prepared by:. June 2011 Project #14026. Introduction. Introduction.
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K-12 Foodservice Assessment Prepared by: June 2011 Project #14026
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.
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?
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?
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?
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?
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?
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?
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.
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.
Executive Summary • Bullet 1 • Bullet 2
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: Health & Wellness is a “hot topic” in k-12 foodservice, but implementation is diverse. You must get through this first. #1 With impending USDA regulations and costs increasing, a la carte menu items are in trouble and need to offer “value”. #2 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 Frito Lay & Quaker are viewed positively amongst the K-12 foodservice community, but competition is not far behind. #4
List of All Conclusions State and district regulations differ throughout the country. #5 Tropicana 100% juice will be very important going forward with new juice regulations #6 Segment is going away from salty snacks and looking for more “whole grain” alternatives #7 Marketing efforts need to be around health attributes and how it will fit into the menu #8
List of All Conclusions Government subsidies drive purchasing decisions #9 Decisions differ between affluent districts and less affluent districts #10 Sales Representation #11 Go-To market strategy – less is more #12
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
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
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
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
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
Conclusion #6 Enter text Tropicana 100% juice will be very important going forward with new juice regulations #6
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
Conclusion #8 Marketing efforts need to be around health attributes and how it will fit into the menu • Enter text #8
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
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
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
Conclusion #12 Enter text Go-To market strategy – less is more #12
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 operated vs. FSM managed Q1: Is your school district self-operated or operated by a foodservice management firm (i.e. Compass, Sodexo, Chartwells, etc.)?
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. Frequency of Foodservice Association Membership Q2: Are you a member of any foodservice related groups or associations?
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. % Open for Daypart Q4: What daypart(s) is your foodservice operation open for?
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. Feeding Program Focus by District Size Feeding Program Focus Q6: Which feeding program receives the most focus in an attempt to increase ADP? (select one)
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.”
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 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.”
Legislation plays a large role in purchasing decisions, but PepsiCo needs to remember that the students are the ultimate decider. Key Takeaway 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. Top 2 Box 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.)
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.”
Many offerings within the Quaker and Tropicana lines fit within guidelines and preferences of after-school snacks. Key Takeaway 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.”
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 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. School Feeding Programs Q7: Which of the following feeding/snacking programs do you have at your school? (select all that apply)
It is essential that PepsiCo understands all impending federal regulations and the key sections foodservice operators are most concerned about. Key Takeaway 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.
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.” 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)
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.”
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 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.”
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.”
