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Food prices expected to increase; vendor slashes profit guarantee by more than half

Metz and Associates likely will remain the food service provider for Franklin Regional School District next year -- and students likely will see a price increase for meals while the district might see less of a profit from its food services vendor.

Student lunch prices are expected to be increased by 10 cents to $1.65 for elementary students, $2 for middle and high school students. Breakfast will cost five cents, 80 cents for elementary students and $1 for middle and high school students. The school board will vote to renew the contract with Metz and Associates later this month.

Finance director Dan Watson said the food costs for the district will increase by 6 percent, making the price increases necessary. Additional labor costs also contributed to the price changes.

Metz and Associates guaranteed a profit of $48,939 for the current school year. Next year the company is expecting a little more than $20,000 in profit.

Watson said the company does not expect to make enough profit in 2007-08 to pay the guarentee, so it will have to cover the difference between the profits and the guarantee.

Watson said Aramark, the district's previous food provider, brought in $31,325 from special events. Metz and Associates brought in $7,000 from events in the 2007-08 school year. He said the company is still working to establish relationships with Aramark's old clients.

The board opted last year to bring in Metz and Associates to provide healthier food choices for students.

Board member Lynn Gurrentz suggested that to help increase revenue, meals for adults should be increased more than students. The cost had been slated to be $3.05 per lunch, but instead board members will vote on a proposal that would set it at $3.50.

Board member Joe Seymour said he was pleased with how Metz did in its first year despite the change in profit expectations.

"It is what it is," he said. "But there's been a lot of positive feedback."

The board will vote on the contract renewal on May 19 at 7:30 p.m. in the board room at Heritage Elementary School.

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