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
 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
Cons
 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  Paperwork
 No financial risk (ie if canteen makes a  Time frame for approval from Dept of
loss) Education (8+ weeks)
 Known source of income (from rent)  Potential to lose out on profit if turns out to be
 Still have some control over menu successful
 Don’t need to organise volunteers  Potentially won’t be accepted into the school
 Principal maintains control over all community
aspects of the licence agreement
 Able to choose an applicant experienced
in operating canteens or a food business

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
Canteen available for fundraising
activities eg sushi days once a
week/fortnight/month
Children having money at school
Children late for class/lining up all of
their break time
Creation of excess of rubbish
Mitigant
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
Limit orders to on-line or bag orders only ie children will
not be able to purchase food over the counter
As above
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% gain

Lunch orders 120 200 150 250
Recess orders 52 80 60 100
Net 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
Parent Costs
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
School/P&C cost
Set Up $ 250.00 $ 350.00
Transaction fee $ - 3%
Estimate transaction fee $ - 1,728.00

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

Breakeven Point
Orders Days/ Total Weeks
Income per day Week Orders Av. Price Per week 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
Weeks
Days/ Total operating /
Costs Hours week Hours Rate Per week 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

Prediction
Total Weeks
Per day Days/wk Orders Av. Price Per week operating Total Weekly
Income
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

Weeks
operating /
Hours Days/wk Rate Per week 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

 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

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

Orders Days/ Total Orders Days/ Total Total per Orders Days/ Total Total per Orders Days/ Total Total per
Income per day Week Orders Weekly per day Week Orders Av. Price week per day Week Orders Av. Price week per day Week Orders Av. Price 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

Days/ Total
Costs Hours week 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
 Attachment 3

The School Canteen Term 4 2013 Menu and Pricing

PASTA
Traditional Italian pasta at its best
Plain Pasta (Gluten Free Option Available*) $3.30
Napolitana (Gluten Free Option Available*) $4.00
Bolognese (Gluten Free Option Available*) $4.50
Creamy Pasta (Gluten Free Option Available*) $4.50
Beef 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 mouth
Choose from Margherita, Ham, Mushroom or Ham & Pineapple $4.00

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

SUSHI
Sushi Nori rolls made to order daily
Chicken Teriyaki, Cooked Tuna, Avocado or Cucumber $3.80

LUNCHTIME FAVOURITES

Homemade Sausage Rolls with tomato sauce (2 to a serve) $4.00

Chicken Strip Wrap with lettuce and mayo $4.80
Crumbed fresh Chicken tenderloins (2 to a serve) $4.00

SANDWICHES
Made 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 $2.20
Cheese $2.50
Chicken, Ham or tuna $3.50
Salad Sandwich $4.00
Egg Sandwich $3.50
Extras; Cheese, Mayo, Lettuce, tomato, bread roll, tortilla bread, toasting $0.50
SALADS

Garden Salad (lettuce, tomato, cucumber and grated carrot) $2.50

Add Shredded Chicken Breast, Tuna or a fresh hard boiled egg to your salad for $1.00
$1.00 extra

SNACKS

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

DESSERT

Apple Slinky $0.50

Seasonal Fresh Fruit per piece $0.80
Frozen Grape Cup $1.00
Fruit Salad $3.50
Biscuit of the day (2 to a serve) $1.00
Muffin of the day $1.50
Strawberry jelly cup $1.50
Chocolate Pot (low fat house made chocolate custard) $2.00
Smooze Frozen Ice Treat (Mango, Pink Guava, Pineapple or plain coconut) $1.50
Gelato – freshly made gelato assorted flavours each week. $2.00
Flavours include Vanilla Lemon, Milo and Caramel
Juicies – 100% fruit juice frozen available in Apple , apple and blackcurrant or $1.50
Tropical Flavour

DRINKS

Water (300ml) $1.00

Plain Milk (250ml) $1.00
Flavored Milk (250ml) Low fat milk mixed with fresh house made Chocolate or $2.00
Strawberry flavour
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 Response Response

at school in 2014 Percent Count
0 0.5 1
1 53.2 100
2 42.6 80
3 3.7 7
188

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

% of % of total by
Year Count total stage
P 6 2.17
K 52 18.77
1 55 19.86
2 52 18.77 59.57
3 34 12.27
4 34 12.27 24.55
5 20 7.22
6 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% 93

Convenience 83.6% 102
Break for parent 68.0% 83
Nutritional Variety 18.0% 22
Other (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.

Response Response
Answer Options
Percent Count
4-5 days/week 5.7% 7
2-3 days/week 25.4% 31
1 day/week 51.6% 63
Fortnightly 11.5% 14
about once a month 4.1% 5
about once a term 1.6% 2
less 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.

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

200
180
160
140
120 First
100
80 Second
60 Third
40
20 Fourth
0
Fifth
Price

Menu Variety

Food Quality

Nutritional Value

Use/Ordering

Operation

Options/Flexibilit
Hours of

Sixth
Ease of

Payment

Seventh
y

How often would you use the canteen?

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

Response Response
Answer Options
Percent Count
4-5 days per week 6.9% 12
2-3 days per week 31.2% 54
1 day per week 47.4% 82
fortnightly 9.2% 16
once a month 3.5% 6
once a term 1.2% 2
less often 0.0% 0
Never 0.6% 1
answered question 173
How important is having a canteen?

Very Somewhat
Answer Options Important Not at all important
important important
How important is
57 60 44 13
having a canteen

Price Expectations

Average Maximum Minimum Median

Lunch 6 12 3 5
Recess 3.23 10 1 3

Canteen Opening Expectations

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

Response Response
Answer Options
Percent Count
a. 1-2 days per week 22.4% 39
b. 3-4 days per week 46.0% 80
c. 5 days per week 31.6% 55
answered question 174

Ordering Preference

Response Response
Answer Options
Percent Count
a. Online in advance 47.1% 82
b. Online on the day 29.3% 51
c. In Person 23.6% 41
answered question 174
Other Comments

Responses were broadly catergorised as follows:

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