Private School Catering: Preparing for Change Against the Backdrop of VAT

As a result of the general election, the independent school sector faces a new challenging financial landscape over the coming months. With the impending threat of VAT on school fees under a new Labour government, it is now more important than ever for independent schools to make use of the latest technology to help them better understand the true cost of school catering and to take steps to budget more efficiently.

The imposition of VAT on school fees will undoubtedly place an additional financial burden on independent schools, making it even more challenging for them to provide high-quality education and services to their students. In order to mitigate the impact of VAT on school fees, schools must take proactive measures to reduce costs and increase efficiency in all areas of operation, including school catering, which is one of the biggest overheads.

When it comes to school catering every item purchased, used or wasted has a cost implication and if you don’t have complete visibility of true costs, and accurately account for everything that goes in and out of the school kitchen, your spending will likely spiral out of control. A simple thing like understanding the true cost of a plate of food, could make a big difference to your business. At Zupa, when we refer to ‘true’ costs, we mean everything down to the very last ingredient, from a sprinkle of parsley to a drizzle of vinegar or a squeeze of lemon juice. This might seem pedantic but oversights like these can add up over a period of time and if you haven’t included those costs in the overall price of every school meal, you are effectively throwing money down the drain.

There are of course ways to keep on top food prices and to ensure that you are accurate with your costing, but you must first identify how you account for this. For example, are you are estimating the cost of a meal, or working on a single source of truth, i.e., the facts? Using the right technology will help you to plan recipes, cost your dishes accurately, compare live prices, and purchase competitively from a wider network of suppliers. With complete visibility of cost control, you will also ensure reliable stock rotation and inventory management and will reduce wastage at the same time.

Understanding the true cost of school catering and implementing effective (P2P) Procure to Pay technology like Zupa’s Caternet, means schools can streamline their catering operations, control spend and reduce unnecessary expenses. The right procurement technology can also play a crucial role in helping schools to budget more efficiently and make more informed decisions about their catering services.

Thankfully, advances in technology mean that procurement solutions can provide schools with real-time data and insights into their catering costs, allowing them to identify areas where savings can be made and negotiate more competitive deals with suppliers. By using procurement technology to manage purchasing processes and track expenditure more effectively, schools can ensure that they are getting the very best value for money from their catering providers at a time when they need it most.

In addition to cost savings, platforms like Caternet can also help schools to improve the quality of their catering services by facilitating better communication with their suppliers, creating more innovative menus that make the most of current stock and even dietary preferences. Technology will also allow schools to monitor food quality and safety standards, allergens, and ensure compliance with the latest regulations. By investing in new cloud-based technology solutions (with no upfront capital expenditure), schools can not only save money but also enhance the overall dining experience for their students.

As we move forward into the new academic year, in-house catering is certainly likely to become a strategic move for many schools that currently outsource, with many wondering if bringing catering in-house will improve cost-efficiency. Some schools have already begun reviewing outsourced contracts with a focus on sustainability and cost savings. Regardless, the existing threat of VAT on school fees highlights the need for independent schools to better understand the true cost of school catering and to take immediate steps to budget more efficiently.

With an unpredictable academic year ahead, schools must ensure that they are better prepared to navigate the financial challenges ahead. Catering is a huge cost for schools, but a high quality catering provision is also an expectation of a good private school education. Therefore, it is essential for schools to prioritise cost savings and efficiency in all areas of operation, including school catering, if they are to continue to provide high-quality dining and education to their students.

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