Implementing Strong Nutrition Standards for Schools: Financial Implications

A frequently expressed concern

is that implementing strong

nutrition standards will reduce

revenue obtained from food

and beverage sales.(12-14)

The Issue• Thepercentageofchildrenandadolescentswhoareobesehasmorethantripledinrecentdecades,and

mostyoungpeopledonotmeetrecommendationsforhealthyeating.(1,2)

• Overweightandobesityarestronglyassociatedwithanincreasedriskofdiabetes,highbloodpressure,highcholesterol,asthma,jointproblems,andpoorhealthstatus.(3)

• Despitethesefacts,manyschoolsstillallowstudentstopurchasecompetitivefoodssuchascandy,chips,soda,andotherunhealthysnackfoodsandbeveragesinvendingmachines,schoolstores,orasàlacarteofferingsinschoolcafeterias.(4,5)

• Researchshowsthatstudentswhoattendschoolsthatsellfoodswithlownutrientdensity(oftenreferredtoasjunkfoods*)andsugar-sweetenedbeverageshavelowerintakeoffruits,vegetables,andmilkatlunch,lowerdailyintakeoffruitsandvegetables,andhigherdailypercentageofcaloriesfromtotalfatandsaturatedfat.(6-9)

• Themajorityofstudentsattendschoolsindistrictswithwrittenwellnesspoliciesthatincludenutritionstandardsforcompetitivefoodsandbeverages,andmorethanhalfofstateshavepoliciesthatlimitorrestrictcompetitivefoodsinschools.(10,11) However,thesepoliciesvaryinstrength,andmanydonotensurethatonlyhealthyfoodsandbeveragesareavailableonschoolcampuses.

*Foodsorbeveragesthathavelownutrientdensity(i.e.,theyprovidecaloriesprimarilythroughfatsoraddedsugarsandhaveminimalamountsofvitaminsandminerals).

National Center for Chronic Disease Prevention and Health Promotion Division of Adolescent and School Health

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The EvidenceWhile some schools report an initial decrease in revenue after implementing nutrition standards, a growing body of evidence suggests that schools can have strong nutrition standards and maintain financial stability.

• Eightypercentofprincipalsinonesurveyreportedlittleornochangeinrevenuewhentheyimplementedastatepolicyrestrictingthesaleofjunkfoodsandsodainschools.(15)

• Apilotstudyinanurbanmiddleschoolfoundthatwithin2monthsofimplementingnutritionstandards,theschoolgeneratedmorerevenuefromfoodsalesthanalargermiddleschoolinthesamedistrictthatcontinuedtosellsodaandfastfood.Thisincreaseinrevenueresultedfromincreasedparticipationintheschoollunchprogram.(16)

• DatafromapilotstudyinfiveschoolssuggestthatimplementingnutritionstandardsthatallowsalesofonlyhealthysnackchoicesincreasedthenumberofstudentsparticipatingintheNationalSchoolLunchProgramanddidnotcauseanysignificantchangestoschoolfinances.(17)

• Among16schoolsthatreceivedfundingtopilottesttheimplementationofstatenutritionstandards,13schoolsreportedanincreaseingrossrevenue.Mostoftheseschoolsreportedincreasesinthesalesofreimbursableschoolmeals,withthegreatestincreasesoccurringintheschoolsthateliminatedàlacartefoodscompletely.(18) Twooftheschoolsreportinganincreaseingrossrevenuewereabletoincreasebothsalesofschoolmealsandcompetitivefoodswhilecomplyingwithstatenutritionstandards.Oftheremainingthreeschools,onehadvirtuallynochangeingrossrevenues;onelost8%ingrossrevenue,andanotherlost15%.

• InareportofschoolnutritionsuccessstoriespublishedbytheU.S.DepartmentofAgricultureandtheCentersforDiseaseControlandPrevention,fourofthefiveschoolsanddistrictsthatimplementednutritionstandardsforcompetitivefoodsreportedanincreaseornochangeinrevenue.(Onedistrictdidnotreportanyfinancialdata.)(19)

• Anevaluationoftheimpactofstatelegislationestablishingnutritionstandardsforcompetitivefoodsfoundthatofthe11schoolsthatreportedfinancialdata,10experiencedincreasesofmorethan5%inrevenuefrommealprogramparticipation,whichoffsetdecreasesinrevenuefromàlacartefoodservice.(20)

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Financial risk often can be minimized by careful selection and clever marketing of the healthier food and beverage choices.

• Arandomizedcontrolledtrialof20secondaryschoolsfoundthatpromotingthesaleoflow-fatfoodoptionsandincreasingtheavailabilityoftheseoptionsresultedinahigherpercentageofsalesfromthesefoodsandnoeffectonoverallfoodservicerevenue.(21)

• Twostudieshavefoundthatloweringthepriceoffruits,vegetables,andlow-fatsnacksresultedinasignificantincreaseinthesalesofthesefoodswithoutadecreaseintotalrevenue.(22,23)

School beverage vending contracts are not a significant source of revenue for most schools.

Ananalysisof120beveragecontractsfrom16statesfoundthat,onaverage—

• Salesofbeveragesinschoolsgenerateonly$18perstudentperyear.(24)

• Foreverydollarthatstudentsspendonbeveragevendingmachinepurchases,only33centsgoestotheschool.Theremaining67centsgoestothebeveragecompanies.(24)

Resources• InstituteofMedicine.Nutrition Standards for Foods in Schools: Leading the Way toward Healthier Youth. Availableat

www.iom.edu/Reports/2007/Nutrition-Standards-for-Foods-in-Schools-Leading-the-Way-toward-Healthier-Youth.

• CentersforDiseaseControlandPrevention.NutritionStandardsforFoodsinSchools.Availableatwww.cdc.gov/Healthyyouth/nutrition/standards.htm.

• U.S.DepartmentofAgriculture.TeamNutrition.Availableatwww.teamnutrition.usda.gov.

• U.S.DepartmentofAgriculture.HealthierUSSchoolChallenge.Availableatwww.teamnutrition.usda.gov/healthierUS/index.html.

• U.S.DepartmentofAgriculture.ChangingtheScene–ImprovingtheSchoolNutritionEnvironment.Availableatwww.fns.usda.gov/TN/Resources/changing.html.

• RobertWoodJohnsonFoundation.SchoolWellnessPolicyEvaluationTool.Availableatwww.yaleruddcenter.org/resources/upload/docs/what/communities/SchoolWellnessPolicyEvaluationTool.pdf.

• CenterforScienceinthePublicInterest.SweetDeals:SchoolFundraisingCanBeHealthyandProfitable.Availableatwww.cspinet.org/new/pdf/schoolfundraising.pdf.

• ConnecticutStateDepartmentofEducation.ActionGuideforSchoolNutritionandPhysicalActivityPolicies.Availableatwww.sde.ct.gov/sde/lib/sde/PDF/DEPS/Student/NutritionEd/Action_Guide.pdf.

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