APSE South & South West Catering Advisory Group

Transcription

1 APSE South & South West Catering Advisory Group Tuesday 15 th October 2013 Portcullis House, London

2 Welcome Chair: Cllr Van Coulter, Oxford City Council

3 Plymouth City Council providing school dinners and community meals service to Gold Catering Mark standard Brad Pearce, Education Catering Manager, Plymouth City Council

4 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

5 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

6 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

7 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

8 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

9 Sustainable procurement Our objectives Work began to re-tender our food contracts from 2009 onwards. Good quality produce Affordability Fresh Seasonal, and; Local

10 Sustainable procurement Our challenges Value of the business EU Procurement Law (OJEU) Number and size of contracts Food and fuel cost increases

11 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

12 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

13 Food: Plymouth

14 Sustainable food cities

15 Catering Mark & Food Plymouth

16 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.

17 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

18 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.

19 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

20 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

21 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

22 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

23 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

24 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

25 School Food Plan

26 One of Europe's most vibrant waterfront cities where an outstanding quality of life is enjoyed by everyone.

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28 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

29 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

30 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

31 Questions?

32 Questions

33 GS Plus Catering Services- expanding operations outside your council boundaries Julia Richardson, Head of Business Development, GS Plus

34 Julia Richardson Business Development Executive for GSPlus & GSS Expanding operations outside your council boundaries

35 Start of the Journey The journey started under CCT in 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

36 GSS were created in December 2009 and GSPlus in February 2010

37 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

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39 Modernisation Our commercialism programme has two key phases based over four years from 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

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41 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

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43 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

44 Key Challenges!

45 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!

46 Must haves

47 STAFF FLEXABILITY

48 PERSISTENCE

49 Financial stability

50 Be prepared that not all your ideas and creations will work first time and can have consequences

51 Must do!

52 Only select the most feasible ideas for development

53 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

54 Research your key competitors

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57 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

58 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

59 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

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62 Contact

63 Questions

64 Performance trends in catering services and key learning from 2013 State of the Market survey Rob Bailey, Principal Advisor, APSE

65 State of the Market 2013 Catering Rob Bailey, Principal Advisor, APSE

66 Services provided 100.0% 92.9% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 50.8% 41.3% 42.9% 30.0% 20.0% 10.0% 0.0% School meals Civic catering Staff catering Welfare meals 0.8% None 15.1% Other (please specify)

67 Catering Organisation Schools employ their own catering staff Some catering contracted out All catering contracted out Shared service with another autherity Partly owned local authority company Wholly owned local authority company Within central FM service including Hard FM Within central FM service including Soft FM Catering is a standalone service Education, Civic and Care catering are separate 20.8% 26.4% 1.9% 0.0% 0.0% 14.2% 5.7% 42.5% 30.2% 38.7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

68 Wages and Job evaluation 37.9% 1.9% 0.0% 3.9% 6.8% 49.5% Increased a great deal Increased slightly About the same Decreased slightly Decreased a great deal Not applicable

69 School meal numbers 70% 63% 60% 50% 53% 51% 40% 30% 20% 35% 27% 19% 20% 28% 30% 23% 18% % 3% 2% 2% 2% 11% 7% 3% 2% 2% % increase alot increase slightly stay the same decrease slightly decrease alot

70 Disagree strongly Disagree Agree Agree strongly No opinion 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

71 FM organisation? 50.0% 42.4% 40.0% 30.0% 25.3% 20.0% 10.0% 8.1% 15.2% 9.1% % Yes - We are already Yes - within 12 months Yes - within 2 years No Other (please specify)

72 Nutritional Software

73 The search for productivity 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%

74 Productivity Options Secondary Primary

75 Growth Free school meals Breakfast Clubs External & Partnerships Decreases Hospitality and civic Academies & secondary schools Pupil numbers decreasing

76 School Catering - Meal Uptakes 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Paying uptake Free uptake Paying not taken Free not taken

77 Cost breakdown 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 % 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, , ,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

78 Contact details Rob Bailey, Principal Advisor Association for Public Service Excellence 2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road, Old Trafford, Manchester M32 0FP. telephone: fax: web:

79 Round table discussion/ Questions

80 APSE Update

81 Future Meetings- 2013/14 National Catering Advisory Group Manchester 16 th October First quarter tbc Regional- Catering Advisory Group? After future APPG School Food meetings?

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83 Contact details Helen Burkhalter Principal Advisor- South / South West hburkhalter@apse.org.uk Phone: / Association for Public Service Excellence 2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road, Old Trafford, Manchester M32 0FP. telephone: fax: web: