P1251328616eJRLz

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2005 Child Nutrition Industry
Conference Managing The Forces Of Change
www.schoolnutrition.org
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CNIC Conference Program
GENERAL SESSION NUTRITION VS. BUSINESS AND
COMPETITIVE VENDING FOODS Speaker Leo Lesh,
SFNS, Executive Director, Denver County SD, CO
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Managing the Forces of CHANGE
2005 Child Nutrition Industry Conference
January 16 18 Austin Texas
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Three Types of Conference Participants
The Hostage
Vacationers
Willing Learners
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The Changing Face of School Food
ServiceNutrition vs Business Insights to
Competitive Vending





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What is the most important force that makes it
essential for School Food Service to promote
nutritional initiatives?
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SOCIETAL

CHANGES
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What Factors Related To This Force Best Explains
Why Nutritional Initiatives Are Needed?

• Shifts in health perception create tension in
  society

2. These tensions tend to change our
conditioning and perception about the nature
of things
3. The crisis ensuing from these tensions
provides both opportunity and dangers
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Change is
Inevitable
Growth Is
Optional.
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Seven conditions for growth as a result of change

• Dissatisfaction with the status quo
• Vision of where we need to go
• A process by which to get there
• The will to make it happen
• Action steps to begin the journey
• Evaluation of action steps
• Re-commit to the journey

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WHERE IT ALL BEGAN In the ancient city of
Alexandria coin operated vending machines were
also present. The writings of Heron of
Alexandria, about a century (215 BC), report of
an automatic 'holy' water dispenser. This machine
was found in the temples and allowed each person
to receive a uniform allotment of holy water
without requiring a priest to constantly dispense
it.
Sources Ancient Greek Gadgets And Machines,
Robert S. Brumbaugh, Thomas Y. Crowell Company,
p. 7 Ancient Inventions, Peter James and Nick
Thorpe, Ballantine Books, p. 128-129
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Vending Trivia - Continued

• In Japan, the first vending machine was "a
  machine selling tobacco and other articles,"
  which was based on an idea by the inventor
  Koshichi Tawaraya, in 1888. According to a patent
  certificate in 1890, it was equipped with
  elaborate mechanisms, such as ones that rejected
  counterfeit coins and returned coins.

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Vending Trivia - Continued

• In the U.S. it is generally accepted that vending
  began in 1888, when the Adams Gum Company
  introduced its penny machines. 1
• 1798 the term soda water was coined
• 1835 the first bottled soda water in the U.S.
• 1861 the term pop coined
• 1 A Concise History of Vending In The United
  States, G. Richard Schreiber, Sunrise Books.

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From Those Humble Beginnings !

• Bill targets school vending Machines
• Schools may ban vending machines to fight obesity
• NEW YORK (Reuters) -- As popularity contests go,
  vending machines may no longer be part of the
  "in" crowd
• School vending machines presents quandary
• Dispensing Junk How School Vending Undermines
  Efforts to Feed Children Well
• Schools Across U.S. Target Vending Machines in
  Obesity Controversy

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Nutrition vs Business
Nutrition has me on the ropes, but I am not
giving up yet..
I am going to pulverize this vending machine!
Nutritional Integrity
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Youre my kind of Machines
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The Essential Triangle
Financial Stability
Political Environment
Nutritional Integrity
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Three Cherries!!!! my favorite fruit. I LOVE
this new vending machine!
Financial MGR
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What is the difference between this
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And this?
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Or this
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They all perform the same function !
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FACTOIDS!!!

• For generation X and Y, snacking and grazing
  are the norms
• For these same groups, three sit down meals daily
  are the exception
• These groups are big consumers of handheld foods
• Fifty-eight percent of these groups surveyed
  selected sandwiches or bagels for lunch 1
• Todays vending machines can phone home, transmit
  inventory levels, sales figures, out-of-service
  and other data directly to a desktop PC
• The average amount spent in a vending machine at
  school is about 1.50
• 1From the Future of Vending and
  Foodservice Industry 1998-2013

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Vending Purchase Frequency
Never 8.9
Daily 18.3
Less than once/week 32.1
3 -4 times week 14.7
1 -2 times/week 25.9
A la Carte/Vending Research, Student/NAC Survey
Report, June 2001
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Times for Vending Purchases
A la Carte/Vending Research, Student/NAC Survey
Report, June 2001
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Vending vs Cafeteria Sales
A la Carte/Vending Research, Student/NAC Survey
Report, June 2001
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What are our options?

• Eliminate vending completely
• Limit the hours of the machines
• Limit the number of vending machines
• Limit access to only adults

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OR

• You could accept the challenge and work with a
  vending company (or start your own), and the
  district to help control the number, the
  locations, the revenues and the product selection.

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The Debate
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The keys to success..Self OP

• Have Business P L A N!!!!
• Do your research
• Variety is the spice of vending
• Use a plan-o-gram

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PLAN-O-GRAM
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The keys to success..Self-Op Continued

• Service
• Partners
• Maintenance
• Excellent accounting and business practices

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DPS Food and Nutrition Services
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DPS Vending Year to Year Comparisons Middle
School High School
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DPS Vending July to DecemberMiddle School
High School
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  Items in Vending Machines              
    Fat Sugar       Fat Sugar
8 Pretzels 0 0     Apples In a Bag 0 6
12 Animal Crackers 14 23     Grapes In a Bag    
24 Rice Krispies Bar 20 36     Fruit In a Bag    
5 Baked Doritos Cheddar Sour Cream 21 1     Veggie In a Bag    
16 Strawberry Yogurt Bar 21 19   10 Wheat Thins 39 10
25 Pop Tarts 23 29   21 Cashews n/a n/a
4 Baked Doritos Sour Cream Onion 25 4   9 Yogurt Pretzels    
1 Baked Doritos Cool Ranch 27 5   19 Toasty Peanut Butter Cracker    
2 Baked Doritos Nacho 27 5   18 Granola Bar, 3 varieties 26/30 32/35
26 Chex Mix 28 7   11 Low Fat Iced Ginger Snaps 14 35
3 Baked Doritos KC Master piece 29 7   25 Cereal Bar 2 varieties 19/24 31/35
17 Honey Oat Bar 30 24   28 Elfin Crackers 19 24
6 Baked Cheetos 35 4   23 Chips Ahoy Thin Crisp 100 Calorie Packs 27 30
7 Baked Cheetos Hot 35 4   11 Nabisco Honey Maid Raisin Cookies 30 35
4 Fruit Bowl Asst 0 12/19   13 Sunkist Mixed Fruit Snacks 6 31
14 Snack Mix 39 3   9 Raspberry and Yogurt Newton Bars 17 35
2 Sun Chips 39 7   12 Corn Nuts Chile Picante Kraft 37 0
29 Grandmas Vanilla Cookies 40 32   16 Crunch Donuts 40 37
33 Hickory Smoked Beef Jerky 14 15   25 Fruit Snacks 0 58
27 Honey Maid Cinnamon Sticks 19 29   26 Bugles 50 3
18 Austin Reduced Fat Cheddar Crackers 37 14   27 Bugles nacho 50 3
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DPS Snack Vending Advice Sheet
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DPS Snack Vending Breakeven
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The keys to success..Contracted

• Define your needs
• Define the scope
• Clearly define the rights and responsibilities of
  the parties
• Describe the products you want vended
• Include a non-competition clause
• Specifically describe the reporting needs of the
  district
• Know who to contact for servicing
• Define how refunds are handled
• Define how product rebates are handled
• Providing an out

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Colorado Department of Education
WWW.cde.state.co.us/index_ nutrition.htm

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The keys to success..Exclusivity Agreements

• Commitment
• Ask for what you want
• Experiment

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Beverage Exclusivity Contracts

• Only water can be sold in elementary schools
• Water cant cost more than other products
• Battery operated timers must be on all machines
• Terminating the contract
• Graphics
• Extras
• Management
• Nutrition/Revenue committee

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Pepsi Advice Sheet
Deliveries
From Unit Revenue Comm
Bill-to Delivery Address Asset Location In Building To Sold Amount Vend Price Rate Commissions
999999 School Name 123456 Staff Lounge 1/1/2003 486 486.00 1.00 50 234.78
1/29/2003
999999 School Name 789456 Front Entrance 1/1/2003 1086 651.60 0.60 50 314.78
1/29/2003
999999 School Name 987654 Locker Room/Gatorade 1/1/2003 186 486.00 1.25 25 117.39
1/29/2003
     
Total 1758 1,623.60 666.96
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Nutrition vs Vending
Business
Nutrition
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In Conclusion
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THE END
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CNIC Conference Program
GENERAL SESSION NUTRITION VS. BUSINESS AND
COMPETITIVE VENDING FOODS Speaker Leo Lesh,
SFNS, Executive Director, Denver County SD, CO
62

2005 Child Nutrition Industry
Conference Managing The Forces Of Change
www.schoolnutrition.org