FAQ: OUTSOURCING FOOD SERVICE
1. Has the Board decided to outsource Food Service?
No, this is still in the discussion phase.
2. Why is the Board considering outsourcing food service?
Over 50% of school districts in Pennsylvania have outsourced their food service programs for financial and program purposes. In some cases, in house or self-op food programs experience a revenue shortfall annually due to labor, benefits and rising food costs; the program cannot sustain these expenditures with the revenue received through State and Federal subsidies and paid meals.
3. How is the Food Service program budget different from other budgets?
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The Food Service budget is not part of the school district budget and is expected to be self-sustaining. When labor, benefits and rising food costs (expenditures) are not offset by paid meals and state and federal payments (revenue) the district needs to use fund balance to cover the loss to the food service program.
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The years preceding COVID the food service program experienced losses each year which required transfers from the general fund to cover supplies, food, and labor costs. These losses ranged from $103,899-$204,392 . The program started to be self-supporting only when the Federal and State government was offering free breakfast and lunch which increased reimbursements to help school districts get back on track after COVID.
In 22-23 the Federal government removed the free lunch and breakfast funding however, the State has kept free breakfast for the 22-23 and 23-24 school years. With the removal of the free lunch program but having the State run free breakfast we are now experiencing a break even in the program and no longer having funds to put back into the program.
5. If the Board decides to outsource food service will current food service workers lose their jobs?
No, the Food Service Management Company makes every effort to hire those employees who are current cafeteria employees; however, they will have to go through the normal hiring process as one would when applying for a job.
6. If the Board decides to outsource food service how will this affect retirement (PSERS)?
The Board is concerned about its employees and will make every effort to ensure a fair transition. Should the Board decide to move forward with outsourcing food service, employee retirement will be impacted as follows:
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Employees who are both fully vested with PSERS (5 years or 10 years depending on PSERS classification) and of age to retire will not lose their retirement benefits, will (a) have the ability to retire from the District, (b) begin collecting their pension, and (c) may continue to work for the Food Service Management Company without penalty.
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Employees who are fully vested but not close to retirement (not within 2 years), will be able to collect their retirement at retirement age with no penalty. These employees may work for the Food Service Management Company but will not have a state supported pension as a benefit.
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Employees that are not vested will be able to receive the money they have contributed to PSERS.
7. Will the District still be involved in the food program if it is outsourced?
The district is required by the Pennsylvania Department of Education (PDE) to be fully involved with the food service program as the School Food Authority (SFA) regardless if the program is outsourced or in house. This means the district will still be involved with the Wellness Program, menu development, and operations of the cafeteria.
8. If a student has food allergies or a 504 plan, how will this be handled by the Food Service Management Company?
Food Service Management Companies have registered dieticians assigned to districts within their region. The dietician will work directly with parents to come up with special menus that meet the needs of the student’s allergies or 504 plan.
9. Will the Food Service Management Company still follow the State and Federal guidelines for the National School Lunch Program (NSLP)?
Food Service Management Companies are required by PDE to follow the guidelines set by State and Federal agencies.
10. Will the food quality be affected by outsourcing?
Food Service Management Companies, like our current in house food service program, must adhere to State and Federal guidelines for healthy meals. As such, with either program, meal choices will be based on the same requirements and continue to be varied with scratch cooking occurring where possible. That said, as the district receives bids, food taste and quality will be considered.
11. Will meal prices increase if food service is outsourced?
The district still determines the pricing for meals and ala carte items.
12. Will parents still use SchoolCafe for student accounts or will that change?
The district chooses the student meal account software. Unless the district chooses to change, SchoolCafe will remain in place.
13. If food service is outsourced will there still be community/special events that are usually done by our current program?
Yes, the Food Service Management company will continue the community outreach efforts and special events that are a special part of our district.
14. If the Board decides to outsource food service will the Food Service Management Company reduce pay rates for current cafeteria employees?
No, cafeteria employees will not see a decrease in their hourly rate. In some cases, there may be an increase in pay rates.