Few restaurants could afford to lose $1 on every meal they serve, but in Haywood County school cafeterias, that’s the reality faced every day.

It costs $3.75 to fix a lunch, including the food and labor. But, the federal government pays just $2.79 for students receiving free or reduced lunches — the sector that makes up the majority of kids going through the lunch line.

The loss of $1 per lunch adds up fast considering there are 5,300 lunches being served in Haywood County schools every day. That’s a loss of nearly $100,000 a month.

The plight is universally shared by every school cafeteria.

“You have to buy your food, your equipment, pay your employees and their benefits — you tell me what restaurant could do that at $2.79,” said Sherry Held, the nutrition director of Macon County Schools.

To plug the hole, schools peddle a la carte items — chips, cookies, ice cream, Gatorade and the like. In all, the sale of snacks generates a little more than $1 million a year in Haywood County to cover the losses on the lunch side.

Granted, the chips are the baked variety only and the cookies and ice cream are low-fat. But, they still aren’t healthy per se.

“I would love not to even put those things out there, but we have to offer them to make up that difference,” said Allison Francis, the nutrition director for Haywood County Schools.

In Swain County, a la carte snacks bring in $150,000 a year, money the school lunch program simply can’t afford to do without.

“They are forced to sell items that students will buy in order to generate money,” said Lynn Harvey, the director of child nutrition for the state of North Carolina.

Absent adequate funding from the federal or state government, the burden to supplement school lunches would fall to local school systems. But they, too, don’t have the dollars to spare.

“Most local boards of education would prefer to put their education dollars in the classroom,” Harvey said. “We need to help our decision makers recognize that adequate meals at school is a tremendous part of academic success.”

There is one school district in the state that has put its money where their students’ mouths are. Asheville City Schools subsidizes the school lunch program so elementary school cafeterias don’t have to sell snacks. Water, 100-percent fruit juice and animal crackers are the only supplemental items found in Asheville City elementary schools.

“The school system was willing to kick in funding to make that happen,” said Beth Palien, the nutrition director for Asheville City Schools. “We want to do what is in the best interest of the child.”

She estimates they are giving up at least $75,000 a year.

That’s something that’s simply not possible for most school districts, despite their hearts being in it.

“I would love to see the meals be part of public education like text books and transportation and not have to sell that other stuff,” Francis said.

Francis is grateful that in Haywood County, the local school system covers indirect costs such as electricity, which certainly helps.

Still, Haywood County is losing about $200,000 dollars a year. Right now, the balance is coming from savings, squirreled away in better times. That fund has been depleted to just $600,000 though and clearly won’t last forever.

Options on the table

Cost constraints are the primary hurdle faced by school cafeterias in serving healthier, better quality food.

Cafeteria workers wish they could serve apples instead of apple juice, baked potatoes instead of fries or even fresh green beans instead of canned. Francis recalled one school principal who asked why they couldn’t buy raw chicken breasts to grill instead of serving frozen chicken nuggets.

It costs 16 cents for four ounces of juice, compared to 30 cents for a whole apple, for example.

“Unfortunately a lot of healthier made-from-scratch items cost more. It takes more time to prepare so you have to have more labor,” Francis said.

That’s a luxury Francis doesn’t have. The workforce at the 16 school cafeterias in Haywood County has been cut from 120 to 107 in two years. Francis luckily was able to make the cuts through attrition rather than lay-offs.

Haywood cafeteria workers have seen a cut in their pay in an effort to make ends meet. They used to spend teacher workdays cleaning and repairing kitchen equipment. But this year, they will stay home on teacher workdays and lose nine days of pay as a result.

Baked, not fried

Another hurdle to healthier food is the right kitchen equipment — which, in the end, also comes down to money.

At Jonathan Valley Elementary in Haywood County, a fryer still claims coveted floor space in the kitchen, but it hasn’t been used in three years — at least not as a fryer. Until someone hauls it away, it’s been pressed into service as a counter for hot pots and pans.

Haywood, Jackson, Macon and Swain counties have phased out fryers almost entirely during the past few years.

“We have no fryers in our school cafeterias at all,” said Diane Shuler, the nutrition director in Swain County. “They are baked, steamed, broiled, boiled.”

It wasn’t cheap, however. Cafeterias had to replace their fryers with giant industrial ovens, lined with enough racks to warm hundreds of corn dogs and potato wedges at a time.

“A new oven is $15,000 to $16,000 dollars,” Francis said.

Discontinuing fryers also means more prep work at a time they are trying to cut back on labor.

“We are feeding such a larger volume of students in such a short period of time, to bake enough fries you have to start a lot earlier,” Shuler said.

In Haywood County, Francis budgets a measly $60,000 a year for equipment. Francis guards the money with her life for the inevitable equipment repair or breakdown.

The dishwashers in the schools date to the 1970s, but it would cost $35,000 a piece to replace them — hardly in the realm of possibility until they absolutely won’t function, she said.

“We joke that we use duct tape to hold everything together. We patch it up as long as we can,” Francis said.

Dollars and cents

Half or more of the student body at most schools in WNC qualify for free or reduced lunch. In Macon County, 60 percent of the student body is in the program. Here’s how it works:

•  For students on free lunch, the federal government reimburses the school for $2.79 a lunch. The student pays nothing.

• For those on reduced lunch, the government reimburses  $2.39. The student pays just 40 cents.

• For students who pay out-of-pocket, most school districts charge $2 for at the elementary level and $2.25 at middle and high school. The government kicks in 28 cents for out-of-pocket students.

While there’s little the school system can do about the reimbursement rate from the feds for free and reduced lunch students, it begs the question: why not, at least for out-of-pocket students, charge a price commiserate with the true cost of the lunch?

Out-of-pocket students account for just 10 and 20 percent of the total lunches served in area schools, but charging more for their plates couldn’t hurt. Or could it?

“We would be out pricing ourselves. Parents can’t afford to pay that much,” Francis said.

Raising the cost for out-of-pocket kids would be akin to shooting themselves in the foot, Francis said.

School cafeterias benefit from an economy of scale. It’s better to have those out-of-pocket students buying lunch at the current price than not at all, since the fixed costs of labor and overhead are the biggest expense behind that lunch — not the cost of the food itself. Francis estimates out of the $3.75 she has in every lunch tray, only $1 of that was actually spent on food.

“The more people that participate the better off we are,” Francis said.

But like it or not, schools will be forced by federal pricing mandates, starting next year, to raise the cost of lunch for out-of-pocket students by 10 cents a year during the next several years until it more closely matches its reimbursement level.

Francis had always wanted to go back to school on the side to get her master’s in nutrition. But, now, she is reconsidering which degree she really needs the most.

“The longer I have been in this job, I realize it takes an MBA,” Francis said.

Lunch programs by county

Haywood

• Total annual budget: $4.86 million

• Percent of budget spent on food: 34 percent

• Amount made selling snacks: $1 million

• Federal reimbursements: $2.3 million

• Self-pay lunches: $900,000

• Average number of lunches served a day: 5,365

• Percent that get lunch: 80 percent in elementary, 79 percent in middle, 65 percent in high

Macon

• Total annual budget: $2.5 million

• Percent of budget spent on food: 46 percent

• Amount made selling snacks: $400,000

• Federal reimbursements: $1.575 million

• Self-pay lunches: $450,000

• Average number of lunches served a day: 3,150

• Percent that get lunch: 77 percent in elementary, 66 to 71 percent in middle and high

Swain

• Total annual budget: $1.129 million

• Percent of budget spent on food: 35 percent

• Amount made selling snacks: $126,500

• Federal reimbursements: $642,000

• Self-pay lunches: $178,000

• Average number of lunches served a day: 1,443

• Percent that get lunch: 83 percent in elementary, 77 percent in middle, 66 percent in high

It was only 11 a.m., and already 60 fidgeting children had streamed down the lunch line at Jonathan Valley Elementary School, eagerly eying the pans of corndogs and beans, a steady barrage that would continue in five-minute waves until, some 300 lunches later, each class had eaten.

At the end of the serving counter they paused and peered into the milk cooler, pondering whether to grab chocolate or regular, while those lucky enough to have spare change in their pocket might make a dive into the most coveted bin — a freezer full of ice-cream.

Here’s what the kids don’t know. The chocolate milk is fat free, the ice-cream is low fat, and as for the corn dog? Try turkey dogs wrapped in whole-grain dough.

“We try to sneak it in there,” said Allison Francis, the nutrition director for Haywood County Schools.

There’s actually a term for that in school nutrition circles: “stealth health.”

SEE ALSO: Strained finances pose a hurdle to healthier school lunches

Despite the age-old stereotype, school lunches are the most mulled-over, fought-over, thought-out meal kids are likely to eat all day.

“School food historically gets a bad rap,” said Sherry Held, the school nutrition director in Macon County. “But where can you get a meal as nutritious as ours?”

Held and her counterparts are quick to rally to their own defense.

“People say school meals are not healthy, but let me tell you something, they are,” said Diane Shuler, the school nutritionist in Swain County.

But it isn’t easy.

“It gets kind of complicated,” Shuler said. “People think all I do is feed kids.”

Meeting a litany of federal standards yet fixing something kids like — particularly within the dour budget at their disposal — is a challenge to say the least.

“We probably all need counseling, but it is rewarding,” Held agreed. “If the students are eating good food, it is going to help fuel their minds and bodies.”

School lunches are undoubtedly a big business. While school lunch planners at the local level agonize over their weekly menus, trying to shoehorn all the food groups into a meal kids will eat, giant food manufacturers are employing teams of lobbyists to work the halls of Washington, ensuring pesky details like the health of children don’t stand in the way of bringing their products to market.

Despite the powerful interests behind fried tater-tots and crinkle fries, the federal government is moving slowly but surely toward healthier school lunch trays.

National media made great hay out of the fight over school lunch standards last month — a now notorious debate over whether pizza constitutes a vegetable.

New federal standards for school lunches will be unveiled in January, something that has school nutrition directors waiting somewhat nervously.

“We are about to see a sweeping overhaul in the child nutrition program,” said Lynn Harvey, the state director of child nutrition. “We know it will include more fruits, vegetables and whole grains.”

It will undoubtedly cost more. The federal government will ante up an additional six cents per lunch to help defray the costs, but Harvey has heard estimates that the cost of providing a single lunch will increase by 56 cents.

Money problems limit solutions

Several years ago, North Carolina took matters into its own hands. No more waiting on the federal government to make school lunches healthier. The state would come up with its own guidelines.

Unfortunately, many of the lofty goals — like requiring whole grains and banning fryers — were ultimately side-lined because they cost too much. Instead of standards, they were downgraded to mere “recommendations.”

“The problem is those standards were never funded by the North Carolina General Assembly,” said Harvey.

The standards were tested in 134 elementary schools across the state, but when it came time to make them policy, without funding to help schools make the transition, they were deemed impossible and unfair.

Healthy foods not only cost more and require more staff time to prepare, but school districts would have to replace equipment such as fryers with ovens — something that would cost a single county hundreds of thousands in new kitchen equipment.

At the time, Francis worked in one the few school districts to pilot the standards contemplated by the state. One in particular sticks out in Francis’ mind: the idea of meeting the USDA food group quotas for each and every lunch. Previously, schools counted servings of fruits, vegetables, protein and so on during an entire week and took the average — rather than applying the exact food group standards to each meal.

“It was next to impossible. All of us were in tears trying to plan menus and make it work,” Francis said. That idea was soon dropped.

Unfortunately, so were the other standards.

But, local school districts have voluntarily implemented the recommendations from the state anyway — roughly 80 percent in all. Fruit plays a starring role in desserts, from apple crisp to sliced pears. Tacos are made with ground turkey. Fried foods have been phased out almost entirely.

All the milk is either skim or 1 percent. Salad dressings are low-fat.

In Macon County this year, all chicken products are now whole-muscle chicken, rather than processed parts.

It’s something Shuler would like to do in Swain County as well, but the cost is prohibitive. Whole-muscle chicken products are simply too costly, she said.

One of the biggest pushes has come in whole grains. Bread and buns are whole grain, even the pizza crust. It means brown rice instead of white. Whole-wheat pasta is being slipped into dishes. But, it’s a balancing act.

“If it doesn’t taste good, even if you follow all these guidelines, they aren’t going to eat it,” Held said.

It’s the challenge all school lunch directors face.

“You can make something as healthy as you possibly can, but if it is not something they like, it is going to end up in the trash can,” Francis said.

Francis understands picky kids. For years, she stuffed a peanut butter and jelly sandwich in her purse before going to out eat with her kids. There was no way she was going to order and pay for something on the menu her kids wouldn’t eat anyway.

Meanwhile, food companies have seen the writing on the wall. From Sara Lee to Kellogg’s, they offer special wholesale lines for school cafeterias that have lower fat, sugar and salt contents than the grocery store varieties.

Sure you might see pizza on the school menu but looks can be deceiving.

“Our pizza has whole-wheat crust and reduced fat-cheese and turkey pepperoni,” Francis said.

These facts are strikingly absent from the printed lunch menu, however.

“We don’t really want to tell children they are eating whole-grain pizza. We just tell them, ‘You get pizza today!’” Held said.

‘Baby steps’

Held has learned the importance of baby steps in the five years that she has been with Macon County Schools.

“We try to ease them in to making better choices, like whole-wheat spaghetti and slowly eliminating the not so healthy choices,” Held said.

They are also learning what simply doesn’t take. Kids are savvy. They check the school lunch menus, and if they don’t like what’s on it, they bring their lunch that day. The cafeterias can ill-afford to fix food that no one will buy.

Students have summarily rejected whole-wheat mac-and-cheese for example, Held said. In Swain, they learned that lesson the hard way.

The first time Swain County put whole-wheat mac-and-cheese on the serving line this year, kids eagerly loaded it onto their trays but were less than enamored with it once they sat down and started eating. Hoping once more, they went got it again the next time it made a lunch line appearance.

But the third time it turned up on the menu, they wouldn’t touch it. The school cafeteria had to crank out 130 peanut butter and jelly sandwiches — the staple substitute when standard menu items are rejected — as kids came through the line.

The problem, however, is that Swain County ordered copious volumes of whole-wheat pasta at the beginning of the year that still has to be used up.

“Live and learn, live and learn,” Shuler said.

Ultimately, the hope is that the good eating habits introduced at school will bleed over into their home life.

“If you daughter came home and said, ‘Mommy I tried sweet potato wedges at school today and they were really yummy,’ you might say, ‘Really?’” Held said. “We do the best we can with the time we have with them.”

Free breakfast!

Any K-12 student eligible for free or reduced lunch can now get breakfast at no cost — yes, that’s totally free — thanks to a new state initiative that recognizes kids don’t learn as well when they’re hungry.

School lunch by the numbers

• $2.79: federal reimbursement for students on free lunch

• $2: school lunch for elementary student paying out of pocket

• $3.75: average cost of preparing a lunch in Haywood County

• 16 cents: cost to school for 4 ounces of juice

• 30 cents: cost to school for an apple

• $15,000-$20,000: cost of an oven to replace a deep fryer

• 35 percent: portion of school lunch budget spent on food

• 65 percent: portion of school lunch budget spent on salaries and overhead