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APSE South & South West Catering Advisory Group
Tuesday 15th October 2013
Portcullis House, London
Welcome Chair: Cllr Van Coulter, Oxford City Council
Plymouth City Council providing school dinners and community meals service to Gold Catering Mark standard Brad Pearce, Education Catering Manager, Plymouth City Council
Providing school food and community meals services to Gold Catering Mark Standard
APSE south & south west catering advisory group Brad Pearce - Education Catering Manager Tuesday 15 October 2013
Education Catering Service
Plymouth City Council “In-house” provider of school food Maintained schools and academies
Currently working with:
62 maintained primary schools 5 maintained special schools 1 maintained nursery school 2 primary academies 2 secondary academies
Education Catering Service
Statutory responsibility FSM Paid meal on request
Community focus Areas of deprivation Social inclusion Tackling health inequalities Support families with cooking
skills and food budgeting
Education Catering Service
Plymouth has a pupil population of 37,396 In the schools where we provide services the number
of pupils is 20,774 We currently employ 250 people We buy £1.2m of food per annum We serve circa 8,000 meals per day
Education Catering Service
Since the introduction of mandatory food and nutritional standards we have been proactively working to ensure that all pupils have access to freshly prepared, good quality food. We have: -
Built 20 new production kitchens Refurbished a further 45 school kitchens Removed deep fat fryers
Sustainable procurement – Our objectives
Work began to re-tender our food contracts from 2009 onwards. Good quality produce Affordability Fresh Seasonal, and; Local
Sustainable procurement – Our challenges
Value of the business EU Procurement Law (OJEU) Number and size of contracts Food and fuel cost increases
Sustainable procurement – Our outcomes
In order to explain to potential contractors and suppliers what our preferred aims were we adopted the principles of Food for Life. Three local suppliers covering all requirements All have a presence in Devon and Cornwall High quality local produce Shared deliveries Road miles and carbon footprint significantly reduced
Sustainable procurement – Our outcomes
Food costs per meal New Economics Foundation reported that our
procurement generates a SROI of £3.04 for every £1.00 spent
Increased our take-up of meals by 30% over the last 5 years
Food: Plymouth
Sustainable food cities
Catering Mark & Food Plymouth
School Funding Reform
In 2012 the government announced that budgets must be
delegated to schools.
The budgets for the provision of school meals must be delegated with effect from 01 April 2013.
Funds available for delegation
Free school meals Kitchen repair and maintenance School lunch grant
For Plymouth this equates to around £1.8m
Additionally, the Council is providing the additional transitional amount of £600k - reducing over 4-years which will support schools in the transfer of responsibilities
Cabinet also approved that the service explore additional trading options and potential revenue streams
Consultation
We held consultation events with schools who indicated in a significant majority to either: - Pool budgets, or; Trade with the LA and the Education Catering Service Pool = work together for the greater good and share budgets and continue to cross subsidise. Any losses carried forward to next years’ pooled budget. Trade = individual SLA between the school and the service. Any losses borne by the individual school in year.
School preferences
All schools decided that initially for the year 2013/14 they would enter into the “pooled” arrangement. This is: a significant recognition of the work of the service a recognition of the benefits of sustainable procurement
and economies of scale a recognition and support for smaller schools
School Food Steering Group
With all maintained primary and special schools having agreed to pool catering budgets for 2013/14 we established a School Food Steering Group to: -
Manage the changes to school food delivery following the national school funding reform, and;
Explore potential alternative delivery models to move to a viable and sustainable service
Scope of the Steering Group
Consideration of the future delivery models for
school meals Finance arrangements for the catering pool from
April 2013 to March 2014 Profitability of individual school kitchens Menu development in line with nutritional
standards
Scope of the Steering Group
Wider issues such as childhood obesity and whole
school food policies Impact of welfare reform – eligibility criteria and
ability of parents to pay Setting the meal price Food contracts procurement Staffing issues
Agreed principles
Children need to be involved in shaping the offer Building on strengths and what schools have said
via their decision to pool That all children should have access to freshly
cooked, healthy and affordable hot school food Collaboration and cooperative model values Vision for a longer term sustainable City wide
offer
The future of school food provision
Legal advice from outside of the Council EU Competition Law and State Aid Moving forward Memorandum of Understanding
April 2014 Work towards a Joint Venture Cooperative
April 2015
School Food Plan
One of Europe's most vibrant waterfront cities where an outstanding quality of life is enjoyed by everyone.
Community Meals
Cabinet Paper - January
2013 Ambitious plans for
modernising Adult Social Care services
Improved quality and
outcomes and increased choice and control
Improving the community
meals service via a traded model
Community Meals
Trial November 2012 Service transfer March 2013 Commenced full production
July 2013
Six school kitchens 1,200 meals per week
Maximised use of labour Maximised use of kitchen
estate Increased food procurement
Reduced costs per meal by
circa £2.00 per meal Sheltered Housing
Next steps for development
Create and develop the JVC with schools Community Meals – improve and expand the service to
existing clients plus new traded customers Start to implement the School Food Plan Re-tender all food contracts for October 2014 Explore ways to support schools to implement The
Plan and create links with Health and Food for Life Catering Mark
Continue work with the Plymouth Food Charter Continue work to support the Sustainable Food City
Plymouth Action Plan
Questions?
Questions
GS Plus Catering Services- expanding operations outside your council boundaries Julia Richardson, Head of Business Development, GS Plus
Julia Richardson
Business Development Executive for GSPlus & GSS
Expanding operations outside your council
boundaries
Start of the Journey • The journey started under CCT in 1991. Then under
Labours rule with the introduction of Best value like most councils at the time we set up as a Trading Services Group
• In 2005, we had the opportunity to work closely with celebrity chef Jamie Oliver which allowed us to radically to transform our catering service
• From receiving National and local Enquires about our new service and by using the powers given under the Local Gov Act of 2003, we started to bid for other work outside of RBG
• Our first success was in In 2009 when we successfully tendered to provide the catering services for one primary school and a large independent school in a neighbouring Borough
• These initial successes made us think “We can do this”
GSS were created in December 2009 and GSPlus in February 2010
Companies in brief GSPlus Ltd and GSS Ltd are part of a group with
different legal structures.
GSPlus Ltd is limited by guarantee and provides support to GSS ltd which is limited by shares 100% owned by RBG
GSPlus Ltd holds our RBG work while GSS is mainly used for all external bidding. Under our model GSPlus provides the a Guarantee to GSS and also key management and technical expertise within the relevant service areas
Modernisation Our commercialism programme has two key phases based over
four years from 2010-2014
The aim of phase one was to modernise our service delivery in order to retain current contracts and place ourselves in a better position to compete in an open market
This included substantial investment in Staff Training, and New technology In Phase One we also overhauled our processes and standards
including achieving all three ISO standards in Catering, Fleet management and Cleaning.
Phase two started in 2012 and has included further focus on
Customer care and relationship building, Account management procedures and robust bidding strategies
Services initially delivered by the Group
Large Fleet Management Department responsible for the full hire/maint of over 700 vehicles to public and private sector clients
Education Catering Services –Primary, Secondary and college
Hospitality catering Cleaning Services – To schools/Borough
Buildings & centres/Parks/libraries/and also a few external customers
Passenger Services- To schools, adult and older people services and some external customers
Initial Action Plans for expansion Phase Two To expand our School meal
service further afield To increase the scope and
number of our cleaning contracts To look at providing joined up
services via a Facilities Management model
Key Challenges!
Legacy of the Local Authority perceived culture
Sometimes deserved, often unfair! Capacity and Resource -Bidding team -Enhanced Financial modelling -Mobilisation resource Temptation to expand too fast Low margins, so need high volume of turnover Having to quickly create new processes and
procedures tor new contracts Parent Company scrutiny Still doing the day job!
Must haves
STAFF FLEXABILITY
PERSISTENCE
Financial stability
Be prepared that not all your ideas and creations will work first time and can have consequences
Must do!
Only select the most feasible ideas for development
RACI Responsible – Define owners of tasks Accountable – Set clear deadlines and
goals for completion of actions Consult – Regular communication and
progress updates Inform – All parties in the project should
be are given clear directives and support to complete on budget and on time
Research your key competitors
Where we are now Grown steadily over last three years Started with two Contract areas under RBG now in six
Local Authority areas. Increased our turnover including
Doubling our turnover in Catering, with the award of a large contract in Kent in 2012 to supply 156 schools, we now provide catering for over 243 schools and colleges No of employees that TUPED initially at the company
launch was around 880, now we employ over 1450 members of staff
New Services Expanded our offer to
encompass FM Including Security, Reception
Services Extended our Hospitality
services and in the last year we have won three new prestigious sites in Hackney, Greenwich and Lewisham
Set up our own Recruitment agency to supply relief staff
Required a new team to supply ICT services to schools
Onwards and upwards! Future plans include : Investment in new state of the Art MOT
testing station, to include MOTS for PCVs and HGVs
Focus on growing our ICT business substantially over the next two years
Further expansion of our Catering Hospitality Business
Contact [email protected]
Questions
Performance trends in catering services and key learning from 2013 State of the Market survey Rob Bailey, Principal Advisor, APSE
State of the Market 2013
Catering Rob Bailey, Principal Advisor, APSE
www.apse.org.uk
Services provided
www.apse.org.uk
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
School meals Civic
catering Staff catering Welfare
meals None Other
(please specify)
92.9%
50.8%
41.3% 42.9%
0.8% 15.1%
Catering Organisation
www.apse.org.uk
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Education, Civic and Care catering are separate Catering is a standalone service
Within central FM service including Soft FM Within central FM service including Hard FM
Wholly owned local authority company
Partly owned local authority company
Shared service with another autherity
All catering contracted out
Some catering contracted out
Schools employ their own catering staff
38.7%
30.2%
42.5%
5.7%
14.2%
0.0%
0.0%
1.9%
26.4%
20.8%
Wages and Job evaluation
www.apse.org.uk
49.5%
37.9%
3.9%
1.9% 0.0%
6.8%
Increased a great deal
Increased slightly
About the same
Decreased slightly
Decreased a great deal Not applicable
School meal numbers
www.apse.org.uk
0%
10%
20%
30%
40%
50%
60%
70%
increase alot increase slightly stay the same decrease slightly
decrease alot
2%
35%
27% 30%
7% 3%
63%
19%
11%
3% 2%
53%
20% 23%
2% 2%
51%
28%
18%
2%
2008
2009
2011
2012
2013
www.apse.org.uk
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
Disagree strongly
Disagree
Agree
Agree strongly
No opinion
FM organisation?
www.apse.org.uk
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Yes - We are already
Yes - within 12 months
Yes - within 2 years
No Other (please specify)
25.3%
8.1% 15.2%
42.4%
9.1%
2011
2012
Nutritional Software
www.apse.org.uk
The search for productivity
www.apse.org.uk
Reduced hours 50.5%
Reductions in management 39.6%
Reductions is catering staff 32.7%
Reduction in Council subsidy 28.7%
Renegotiation of meal charging methodology
23.8%
Reduction of food on plate cost 14.9%
Reduced use of agency labour 12.9%
Taking over central support functions (e.g. payroll)
5.0%
Increased use of agency labour 1.0%
Productivity Options
www.apse.org.uk
0
10
20
30
40
50
60
70
43
29
46
59
28
21
67
24
36
14 10
21
Secondary
Primary
Growth • Free school meals • Breakfast Clubs • External & Partnerships Decreases • Hospitality and civic • Academies & secondary schools • Pupil numbers decreasing
www.apse.org.uk
www.apse.org.uk
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
School Catering - Meal Uptakes
Paying uptake Free uptake Paying not taken Free not taken
www.apse.org.uk
2009/10 average
2010/11 average
2011/12 average
Total staff expenditure £3,775,208 £3,624,979 £3,318,233
Staff expenditure as a percentage of total expenditure
55.67% 56.51% 55.21%
Front line staff costs £3,437,777 £3,244,107 £3,028,199
Front line staff expenditure as a percentage of total expenditure
50.22% 50.77% 50.17%
Food provisions cost £2,085,829 £1,984,855 £1,854,896
Food provisions cost as a percentage of total expenditure
30.86% 31.17% 31.27%
Central establishment charges £214,409 £238,039 £237,070
Central establishment charges as a percentage of total expenditure
3.54% 3.52% 4.17%
Total operational expenditure £6,495,872 £6,191,917 £5,784,684
Total expenditure £6,700,385 £6,403,080 £6,021,754
Cost breakdown
www.apse.org.uk
Contact details
Rob Bailey, Principal Advisor Email: [email protected]
Association for Public Service Excellence 2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road,
Old Trafford, Manchester M32 0FP. telephone: 0161 772 1810
fax: 0161 772 1811 web:www.apse.org.uk
Round table discussion/ Questions
APSE Update
Future Meetings- 2013/14
National – Catering Advisory Group Manchester 16th October First quarter 2014- tbc
Regional- Catering Advisory Group ? After future APPG School Food meetings ?
www.apse.org.uk
www.apse.org.uk
Contact details
Helen Burkhalter
Principal Advisor- South / South West
Email: [email protected]
Phone: 01865 749365 / 07880201078
Association for Public Service Excellence 2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road,
Old Trafford, Manchester M32 0FP. telephone: 0161 772 1810
fax: 0161 772 1811 web:www.apse.org.uk
