The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education

Table of Contents:

Chapter 1: Executive Summary

Scope and Methodology

Scope

Methodology

Consumer survey methodology

Industry Framework and Drivers

Fast facts

Share of Stomach: Sales Analysis

Fast facts

K12 Programs and Initiatives

Fast facts

K12 Foodservice Program Analysis

New York City Public Schools

Los Angeles Unified School District

Chicago Public Schools

San Francisco Unified School District

Fairfax County Public Schools

University Foodservice Trends

Fast facts

University Foodservice Program Analysis

Duke University

Louisiana State University

Stanford University

University of Colorado

University of Connecticut

University of Miami

University of Michigan

University of Portland

The University of Texas at Austin

Vanderbilt University

Foodservice Contractor Education Profiles

Aramark

North America Education Sector

School Meal Programs

Nutrition Education

Higher Education Overview

Residential Foodservice

Food Courts & Snack Bars

Convenience Stores & Vending

Sodexo Inc

Education Foodservice

K-12 Foodservice

School Lunch Programs

Age-specific dining programs

Childhood hunger programs

Nutrition Education

North American Higher Education Foodservice

Residential Foodservice

Retail Foodservice

Convenience Stores & Vending

Compass Group PLC

Compass Group North America (CGNA)

K-12 Dining

Private Schools

Higher Education

Education Strategy

Health & Wellness

Campus Community

Dining Programs

Chapter 2: Industry Framework and Drivers

Education not immune from revenue problems

K-12 in a cash crunch

Higher education calls, but more consumer pocketbooks are empty

College plans delayed or foregone?

College saving trends suggest financial difficulties

Saving for college is a priority for more parents

Total amount saved for college drops among lower-HH income groups

K12 struggles to address obesity and food health challenges

Who’s obese? Who’s overweight?

Adults leading the way

But kids following in their footsteps

Graph 2-1: Prevalence of Obesity Among Children and Adolescents, 1988-2008

And they may be obese when they grow up

Racial/ethnic disparities

Socioeconomic disparities

Health consequences

Don’t forget: It’s about money

Obese kids cost money, too

Physical activity on the ebb

Education: a trillion dollar business

Table 2-1: Expenditures of Educational Institutions

Public elementary and secondary education expenses

Per pupil expenses pass $10,000

Postsecondary expenses highest at public 4-year institutions

Average cost of post-secondary enrollment starts at $2,400, goes up to $18,700

Table 2-2: Undergraduate Tuition & Required Fees,

Public & Private, Residency, 2005-06 v. 2008-09

One-quarter of U.S. is enrolled in school

More students in college than in high school

Table 2-3: Enrollment Status of the Population 3 Years Old and Over, 2008

Women dominating postsecondary ranks

Table 2-4: Enrollment at Title IV Institutions, by Level of Institution, Student Level, Attendance status, Gender, and Race/Ethnicity, Fall 2008

Chapter 3: Foodservice Usage & Outlook Tracker

Packaged Facts’ Consumer Restaurant Tracker

Table 3-1: Foodservice Categories and Types

February 2010 food retail momentum continues through October 2010

Graph 3-1: Consumer Restaurant Tracker: Current Behavior: A Top Line View

Looking ahead: Consumers more likely to save & spend on groceries than spend at restaurants

Intended behavior portends full-service restaurant pullback

Graph 3-2: Consumer Restaurant Tracker: Next 3 Months: A Top Line View

Saving money remains at the forefront; intention to save spreads

Graph 3-3: Consumer Restaurant Tracker: Future Behavior: Saving Money

Students

Graph 3-4: Consumer Restaurant Tracker: Current Behavior: Students

Saving intentions match spending behavior

Graph 3-5: Consumer Restaurant Tracker: Future Behavior: Students

Foodservice usage and usage frequency

Overview

Limited-service restaurants

Full-service restaurants

Snack and beverage concepts

Institutional foodservice

Table 3-1: Foodservice Establishment Usage and Mean Use, 2010

Foodservice and institutional foodservice usage analysis

Note on reading charts

Foodservice category use by demographic

Age

Graph 3-6: Foodservice Usage in Last Month, by Foodservice Category, Age 2010

HH income

Graph 3-7: Foodservice Usage in Last Month, by Foodservice Category, HH Income, 2010

Work status

Graph 3-8: Foodservice Usage in Last Month, by Foodservice Category, Work Status, 2010

Population density

Graph 3-9: Foodservice Usage in Last Month, by Foodservice Category, Population Density, 2010

Institutional foodservice category use, by demographic

Gender

Graph 3-10: Institutional Foodservice Use in Last Month, by Foodservice Category, Gender, 2010

Age

Graph 3-11: Institutional Foodservice Use in Last Month, by Foodservice Category, Age, 2010

HH income

Graph 3-12: Institutional Foodservice Use in Last Month, by Foodservice Category, HH Income, 2010

Work status

Graph 3-14: Institutional Foodservice Use in Last Month, by Foodservice Category, Work Status, 2010

Population density

Graph 3-15: Institutional Foodservice Use in Last Month, by Foodservice Category, Population Density, 2010

Student usage of foodservice categories and types

Table 3-2: Foodservice Establishment Usage, All Users v. Students, 2010

Table 3-3: Foodservice Establishment Mean Usage, All Users v. Students, 2010

Chapter 4: Share of Stomach: Sales Analysis

Market size and overview

Educational foodservice

Discretionary spending less relevant

Loans and grants more relevant

Educational foodservice passes $40 billion in sales

Graph 4-1: Educational Foodservice Sales, K-12 and College, 2005- 2012

Graph 4-2: Educational Foodservice Sales, K-12 and College, % Change, 2005- 2012

Primary and secondary education foodservice

A steady history with enormous funding support

Shaped strongly by population growth trends and public sentiment

But local and state revenue shortfalls dampen prospects

Graph 4-3: Primary and Secondary School Foodservice Sales,

Public and Private Schools, 2005- 2012

Graph 4-4: Primary and Secondary School Foodservice Sales,

Public and Private Schools, % Change, 2005- 2012

College and university foodservice

The expense of college cuts both ways

Loans to the rescue

Marketing colleges to compete for students

Affluence and restaurant savvy heighten student expectations

But economic conditions weigh on families

Graph 4-5: College and University Foodservice Sales, 2005- 2012

Chapter 5: K12 Programs and Initiatives

K12 meal cornerstones

National School Lunch Program & National School Breakfast Program

Overview

How they work

Nutritional requirements

Free and reduced price meals qualification

Reimbursement from government

Table 5-1: Free, Reduced Price and Paid Reimbursement Rates:

Breakfast, Lunch and Snack

Participation

Program costs

Breakfast program availability reduces tendency to skip breakfast

Convenient breakfast options increase participation

Sweeping change at hand: Move It!

Large-scale initiatives

But still falling short

Lax fruits and vegetables policies

Competitive foods requirements

Beverages still an issue at middle schools and high schools

Enough! Let’s Move!

Task Force on Childhood Obesity

Goal specifics: solve childhood obesity in a generation

How? Less added sugar; more fruit and vegetables

Tweak school meals

Recommendations

Where’s the incentive? HealthierUS Schools Challenge

Table 5-2: HealthierUS Challenge,

Award Levels & Amounts

Strengthen legislation

Healthy, Hunger-Free Kids Act

Chefs Move to Schools & Recipes for Healthy Kids

A garden to emulate

School meal program nutrition revisions on the horizon

Calories

Fats and cholesterol

Salt content

Whole grain labeling

What to do about competitive foods?

A significant presence

But options are on the table

Chapter 6: K12 Foodservice Program Analysis

New York City Public Schools

Table 6-1: New York City Department of Education,

Food Service Expenses, 2009

Breakfast in the Classroom a hit

But competitive foods a significant health issue

Los Angeles Unified School District

Table 6-2: Los Angeles Unified School District, by the Numbers

Not food service; it’s Café LA

Competitive food services: beware!

LA goes high-tech with Cafeteria Management System

Policy goals

Second Chance Breakfast

Operational and financial challenges

Chicago Public Schools

Budget crunch

Table 6-3: Chicago Public Schools, by the Numbers

Nutrition Support Services

New nutritional standards for USChallenge Gold

A head start on IOM recommendations

Cooking up Change

San Francisco Unified School District

Table 6-4: San Francisco Unified School District, by the Numbers, Fiscal Year 2010

Student Nutrition Services

Electronic POS system in place

Leave it to San Francisco: slow food in schools!

Nutrition initiatives

Table 6-5: San Francisco Unified School District,

Food Service Menu Highlights

What is Grab n Go?

Table 6-6: San Francisco Unified School District,

Grab n Go Breakfast Program, by the Numbers

Super Choice menu rollout

Salad bar implementation

Other initiatives

Fairfax County Public Schools

Nutrition initiatives

Competitive food policy

Chapter 7: University Foodservice Trends

Students’ and college foodservice food and foodservice attitudes and behaviors

Table 7-1: Food & Foodservice Attitudes & Behaviors: All Users, Students & College Foodservice Users, 2010

University Foodservice Trends

Foodservice contractors on the radar, but under the radar

New brands introduced

Flexibility, variety and convenience

Flexible meal plans

Prepaid debit accounts going off-campus

Catering

Late night munchies

Food allergies and special diets meet Meal Plans

Vegetarians and vegans

Kosher and Halal

Food Allergies

Building community with university dining

Entertainment value

Floor-plan makeovers yield results

Foodservice contractors partners in remodeling

Feedback, comments and the power of Twitter

Sustainability on campus

Trayless and to-go cups

Biodiesel

Let the locals be your sourcing—even as close as campus

Healthy options

Student Issues that contribute to weight gain

Stress and schedule changes

Chapter 8: University Foodservice Program Analysis

Duke University

Table 8-1: Duke University Student Profile

Duke University Meal Plans and Card Features

Table 8-2: Duke University Meal Plans - Food Point Chart

Merchants on Points Delivery

Duke University Dining Stations

Clamshell To-Go and Composting

Legal to Drink? Come to Campus

Louisiana State University

Student profile

Table 8-3: Louisiana State University Student Profile

Foodservice programs and services

Table 8-4: Louisiana State University Meal Plans

Louisiana State University Dining Tenets

Like them (on Facebook)

Stanford University

Student profile

Table 8-5: Stanford University Student Profile

Meal Plans

Table 8-6: Stanford University Campus Undergraduate Meal Plans

Dining Units and Food Retail at Stanford

No Gluten, No Nuts, Kosher and Halal

Technologic Stanford

Sustainability

University of Colorado Boulder

Student profile

Table 8-7: University of Colorado Student Profile

Meal Plans

Dining Services

Table 8-8: University of Colorado Meal Plans

Sustainability at the University of Colorado

I Love Food/I Hate Waste Program

University of Connecticut

Student profile

Table 8-9: University of Connecticut Student Profile

University of Connecticut Meal Plans and Units

Nutrition information and Recipes

Green Dining

University of Connecticut Campus Foodservice by the numbers

Table 8-10: University of Connecticut Campus Foodservice, by the Numbers

University of Miami

Student profile

Table 8-11: University of Miami Student Profile

Chartwells and the Compass Group

University of Miami Meal Plans

Table 8-12: University of Miami Meal Plans

Tray-less

Be a Flexitarian

University of Michigan

Student profile

Table 8-13: University of Michigan Student Profile

Meal Plans

Table 8-14: University of Michigan Meal Plans, Fall 2010

Dining Halls

Dining and Religious Observances

Web-driven Communication

Gluten-Free and Dietitians

University of Portland

Student profile

Table 8-15: University of Portland Student Profile

Big Changes at the University of Portland

Meal Plans Breakout

Table 8-16: University of Portland Campus Foodservice, by the Numbers

Bon Appétit Management Company

Slug Club

University of Texas

Student profile

able 8-17: University of Texas Student Profile

Foodservice Venues

Dine-In-Dollars and Bevo Bucks

Table 8-18: University of Texas Campus Foodservice Prices,

All You Care To Eat Dining Centers

Eco2Go

Composting Two Ways

What’s Next in Texas

University of Texas Campus Foodservice by the numbers

Table 8-19: University of Texas Campus Foodservice, by the Numbers

Vanderbilt University

Student profile

Table 8-20: Vanderbilt University Student Profile

Foodservice programs and services

The Taste of Nashville Program at Vanderbilt University

Vanderbilt Dining Applications for the i-phone

2009-10 foodservice offerings

Future trends at Vanderbilt

Vanderbilt University Campus Foodservice by the numbers

Table 8-21: Vanderbilt University Campus Foodservice, by the Numbers

Chapter 9: Foodservice Contractor Education Profiles

Aramark

Overview

Foodservice Operations

Sales analysis

North America Business and Industry Sector

North America Health Care Sector

North America Education Sector

K-12 Education Overview

School Meal Programs

Expanded Meal Opportunities

Nutrition Education

K-12 Strategy: Health & Nutrition, Boosting Student Participation, Age Differentiation

Health & Nutrition

Boosting Student Participation

Age-Segmented Dining Brands

Higher Education Overview

Residential Foodservice

Food Courts & Snack Bars

Convenience Stores & Vending

Higher Education Strategy: Green Thread Program, Health, Technology

Green Thread Program

Health

Technology

Table 9-1: Aramark by the Numbers

Sodexo Inc

North American Health Care

Corporate Foodservice

Education Foodservice

K-12 Foodservice

School Lunch Programs

Age-specific dining programs

Childhood hunger programs

Nutrition Education

North American Higher Education Foodservice

Residential Foodservice

Retail Foodservice

Convenience Stores & Vending

Education Foodservice Strategy: Student Board of Directors, CustoMenu, Autonomy

Student Board of Directors

CustoMenu

Autonomy

Sodexo's Retail Brand Group

Pandini’s

Jazzman's Café and Bakery

Salsa Rico

Original Burger Company

Mein Bowl

Market Trends and Sodexo Response

Obesity and Health

Globalization and Diversity

Sustainability

Table 9-2: Sodexo by the Numbers

Compass Group PLC

Compass Group North America (CGNA)

Sales analysis

Foodservice Strategy

Room for growth

It Takes You - Eat Local

Leveraging role of single-source provider

Selective acquisitions

North America Business & Industry Sector

North America Health Care Sector

North America Education Sector

K-12 Dining

Private Schools

Higher Education

Education Strategy

Health & Wellness

Campus Community

Dining Programs

Table 9-3: Compass Group by the Numbers

Subsidiaries

Abstract:

With restaurant foodservice sales generally under pressure, education foodservice sales remain a bright spot: Packaged Facts forecasts education foodservice sales at primary, secondary, and postsecondary schools will reach $41.15 billion in 2010, up 2.5% from 2009, according to The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education.

We view federal food programs and student loans as revenue bulwarks that have helped soften the recessionary blow on educational foodservice, as they have helped shield it from swoons in discretionary spending. In response to the children’s obesity crisis and propelled by First Lady Michelle Obama’s Let’s Move campaign, we believe that K-12 foodservice will continue to receive significant attention—and funding—beyond the Obama administration’s first term. The wild card concerns state and local revenue: With property tax revenue declining steeply and with many budgets facing significant revenue shortfalls, primary and secondary schools are in a real fight for local and state budgetary dollars.

Within the next five years, nutritional change will continue to aggressively evolve, as policy makers ready their revisions to school meal nutritional guidelines. We believe these changes are widespread and significant enough that they will ripple out of schools and into the home, helping to reshape how consumers interact with food.

As for today’s college students, the children of the Restaurant Age expect more than ever from their foodservice programs. But with more families in economic straits and lower college enrollment rates ahead, college foodservice programs will need to compete more aggressively to grow revenue.

The Education Foodservice Market in the U.S.: Elementary, Secondary and Higher Education provides the insight industry participants need to understand today’s evolving educational foodservice market, by mapping key trends and policies shaping the K-12 and university sales growth and by profiling a range of school district programs, college foodservice programs, and educational foodservice contractors.

Packaged Facts forecasts educational foodservice to grow 2.7% in 2011 and 2.9% in 2012, with slightly higher estimates for college foodservice than for K-12 foodservice.

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