1. Breakfast & Lunch Price Adjustment Report Board Report 5/19/09 Lodi Unified School District Prepared by: Douglas Barge Warren Sun

2. Lodi Unified School District Table of Contents 2

3. Lodi Unified School District Introduction Food Service operational costs increase at an average rate of 4% - 6% each year. The current paid meal prices do not cover the cost of the meal production. (Free and Reduced meals are covered largely by the federal and state reimbursement) We need to adjust current meal prices to reduce the projected revenue deficit. With a balanced meal price structure, Food Service will maintain the sustainable revenue growth required to Implement the mandated Wellness policy, meet the program needs, and generate funding to eliminate environmentally unfriendly Styrofoam trays in the district. 3

4. Lodi Unified School District Program Challenges 4

5. Lodi Unified School District Continued Growth 5 With a limited market of 29,800 students, our biggest area for potential growth is in Breakfast Participation and Paid Lunch Participation

6. Lodi Unified School District Future Program Needs 6 Increasing consumption of fresh fruits and vegetables Increasing the usage of fresh homemade products Expanding the Breakfast program Expanding the Garden Bars to all school sites to include transport sites. Additional emphasis on teaching students to make healthy choices, as per our Wellness Policy Growing Green, Living Healthy Reducing environmental impact by eliminating Styrofoam Trays, Replacing old equipment with greener equipment, Increasing the amount of local fresh fruits and vegetables purchased.

7. Lodi Unified School District Stimulate overall participation in both breakfast and lunch by providing a pricing structure that lowers the combined meal price. Increase paid lunch prices to reduce the deficit gap between paid prices and cost of production. A win-win situation for all parties. Food Service will see increases in participation and revenue leading to program improvements. Greater student meal participation will lead to better attendance and better overall achievement. 7 Strategy – Increasing Revenue through Entrepreneurship

8. Lodi Unified School District Option 1 Increase Elementary breakfast price by $0.25 ($1.00) and lunch by $0.50 ($2.00), increase Secondary breakfast by $0.25 ($1.50) and lunch price by $0.25 ($2.50). Pros: Reduces the deficit incurred by insufficient meal prices. Provides the financial resources to offer a nutritious garden bar. More equitable meal price structure which will help the long term success of the program. Cons: May negatively affect overall meal participation. May negatively affect overall meal affordability. May be difficult to retain customers due to price increases Difficult economic time for parents 8

9. Lodi Unified School District Lunch Price Comparison 14

10. Lodi Unified School District Option 2 Provide Free breakfast for LUSD students. Increase lunch price $0.50 ($2.00) at Elementary and $0.25 ($2.50) at Secondary schools. May negatively affect lunch participation. May negatively affect lunch affordability. There is a risk the deficit incurred by the meal price will remain. Increased breakfast participation will positively impact student attendance and overall achievement Reduces the deficit incurred by insufficient meal prices. Provides the financial resources to offer a nutritious garden bar. More equitable meal price structure which will help the long term success of the program. Pros:Cons: 9

11. Lodi Unified School District Combined Meal Price Comparison 13

12. Lodi Unified School District Recommendation Option #2 offers significant rewards across the board. 11 Increased breakfast participation will have a very positive affect on student attendance and success. Increased breakfast participation and increased lunch prices will increase revenue an estimated $171,000 for the 2009-2010 school year. The additional revenue will allow the Food Service Department to pursue program improvements such as the elimination of the undesirable Styrofoam trays.

13. Lodi Unified School District Conclusion 12 In these hard economic times and with so many program cutbacks, it is especially important to give our students every advantage we can. Providing convenient, inexpensive and nutritious foods gives our students documented academic advantages. It gives us the opportunity to reinforce healthy eating habits. The combined price for breakfast and lunch gives parents some financial relief. The additional reimbursement from increased participation will provide opportunities to expand the Food Service programs, further benefiting the students.

14. Lodi Unified School District Appendix 15

15. Lodi Unified School District Appendix 16

16. Lodi Unified School District Appendix 16 Proposed Meal Price Changes Current2009-10 Breakfast K - 6th$0.75$0.00 7-12th$1.25$0.00 Adult$1.75 Lunch K - 6th$1.50$2.00 7-12th$2.00$2.50 Adult$2.75