Teenonomics May 2014 | Page 4

T£€NONOMIC$ May 6th 2014 page 4 RENDONOMICS School meals; a pound land bargain How can school meals be so cheap? (And why do they never look like the photos?) doubt that There’s no in house caRendcomb's tering provides a great range of food. This leaves many people to wonder, how the school can feed each of us for as little as a pound a meal, and still maintain its ‘Eat right, stay bright’ policy. What is the economics behind this? Well its all down to simple economies of scale. This is where as a firm, in this case the school, grows in size its average cost per unit produced is reduced. For the school, as more Source 1 With over 500 students to feed, almost 1/3 of which require 3 meals a day, it brings great benefits to have stronger purchasing power. This allows the school to bulk buy ingredients and cut Source: Rendcomb college catering down wholesale prices. With a weekly budget students go to lunch it being spent 23% fruit and becomes cheaper for veg, 27% fresh meat and them to produce each fish, 16% dairy and the meal. As the graph rest on bread and dry (source 1) shows there is goods, a bargaining posian increased output from tion on the fresh ingrediQ2 to Q1, in turn reducents, which make up such ing the average costs to a large proportion of the Ac1. These cost savings budget, is certainly a key come in all sorts of forms element of the costs. from purchasing, techOnce the raw goods arnical (reducing wastage rive however, it’s down to and increasing efficiency the in-house catering through new equipment staff to do what they do for mass produced scales) best, making a delicious and finally specialisation meal for a yummy price. (staff members can specialise in different areas of the kitchen e.g. washing up, main course & cake) all increasing the kitchen’s efficiency. Source: Mirror online