Definition-Policies-Costing and Pricing

MODULE 2
Definition-Policies-Costing and Pricing

OVERVIEW

The double burden of under and over nutrition experienced by

the school children in the Philippines is due to the fact that total food
intake for some children has remained in adequate, resulting in
undernutrition.

In this module we will discuss what kinds of food the canteen

must server to the pupils/students to achieve the goals and objectives
of the DepEd regarding the to D.O’s that has been implemented

Questions for Discussion

1. Illustrate the pinggang pinoy that has been introduce by the DepEd and Department of Health
during National Nutrition Month.

2. What are the 3 category in pinggang pinoy?

3. Do you eat foods according the needs of your body?

OBJECTIVES

At the end of this module the student should be able to:

a. Know the 3 categories of Nutrition Facts

b. Appreciate what food help us.
c. Perform and illustrate what is pinggang Pinoy
 Definition-Policies-Costing and Pricing

Nutrition Facts

Most food products have Nutrition Facts Oatmeal

on their label which provide information about Whole wheat bread
the nutrition content of a food or drink as Cassava (camoteng kahoy)
prescribed by the Department of Health Boiled Sweet Potato
Administrative Order No. 2014-0030. Boiled Saging Saba
Corn, Binatog
Food products with nutrition Facts shall Boiled Peanuts
be evaluated using the cut-off points for the Suman
three categories given below: Puto
Body-building Fishes
(Grow) Shelfish
i. The Green category includes foods and
Small Shrimps
drinks that should ALWAYS be available
Lean meats
in the canteen. These foods and drinks are
Chicken without skin
the best choices for a healthy school
Nuts
canteen as they contain a wide range of
Eggs
nutrients and are generally low in
saturated and trans fats, sugar and salt. Body- Fresh Fruit
Regulating Green, leafy and yellow
(Glow) vegetable.
General Description:
 Contains wide range of nutrients ii. The Yellow category includes foods and
 Saturated Fat is less than 3 grams
drinks that should be served carefully.
(approximately equivalent to more
than half a teaspoon of fat) per These foods and drinks contain some
serving nutrients but at the same time also
 No trans fat contain large amounts, these foods and
 Added sugar is less than 10 grams (or drinks may contribute to excess calories.
teaspoon) per serving
 Sodium is less than 120mg (equivalent
General Descriptions:
to 300 mg of salt or 1/20 teaspoon of
salt) per serving May contain some nutrients but at the
same time contains
 Saturated fat is more than 3 to 5
List of foods and Drinks under the Green
grams.
Category  No trans fat
FOOD Examples  Added sugar is more than 10 grams
Drinks Milk (unsweetened) but less than 20 grams per serving.
Safe and clean water  Sodium is more than 120 mg to 200 mg
Fresh buko water per serving.
(unsweetened)
Energy Giving Milled Rice
(Go) Brown Rice or Iron-fortified
Rice
Corn
 Definition-Policies-Costing and Pricing

List of Foods and Drinks under the Yellow sport drinks, flavoured
Category mineral water, energy
drinks, sweetened
Food Examples
waters, powdered juice
Drinks 100% fresh fruit juice drink
Energy- Fried rice
giving Bread Any product
(Go) Biscuits containing caffeine
Banana Cue, Camote Cue, Turon,
Maruya Any processed
Pancakes fruit/vegetable juice
Waffles with added sugar of
Champorado more than 20 grams.
Pansit Energy-giving Any jelly, ice crushes,
Arroz Caldo (Go) and slushies
Sandwiches
Butter,Margarine,Mayonnaise (use Any ice cream/ice
sparingly) drop/ice candies
Body- Processed foods such as meats/fish,
Building hotdogs, sausage, burger patties, All types including
(Grow) chicken nuggets, tocino, tapa, etc. chocolates,
hard/chewy candies,
Body- Stir-fried Vegetables
chewing gums,
Regulati
marshmallow etc.
n
(Glow)
French fries, bicho-
bicho, etc
iii. The Red Category includes foods and Body-building Chicharon
drinks not recommended in the canteen (Grow) Chicken Skin
menu. These food and drinks contain high Bacon
amounts of saturated fat or sugar or salt and Deep fried food
should not be served in healthy school including fishball,
canteens. kikiams, etc.
Body-regulating Fruits canned in heavy
General Description: (Glow) syrup
 Saturated fat is more than 5 grams
 Contains tans fat no matter how Activity Time!
insignificant the amount is
 Added sugar or total carbohydrates is
a. Prepare sample of a meal plan which
more than 20 grams
 Sodium is more tha 200 mg per serving you gonna distribute to the students.
(Bfast/Snack, Lunch, Meryenda)
from Monday to Friday.
List of Food and Drinks under the Red Category
b. Picture your plate in lunch, let see
FOOD Example what kinds of food do you eat the
Drinks Softdrinks, alcoholic most.
drinks, sport waters,

Financial Management
Pricing Arrangements
A fair price for hand-made items such as
sandwiches, rolls and „open‟ sandwiches, etc..
Should take into account the cost of the
ingredients, the cost of paid labour, and if
possible mark up of approximately 25%.
See the TSCA website at
www.tascanteenassn.org.au for an example of
pricing items for canteen sales.
Manufactured items (e.g. yoghurt, milk,
fruit juices, etc) provide a proportion of canteen
sales and canteens should charge the
recommended price for these items. This mark-
up on these items ranges from 20% - 40%.
In order for a canteen to be financially
viable, income from selling food must either be
equal or greater than the expenses involved in
running the canteen.
Accurate costing of foods plays a very
important part in determining income. A
financially successful canteen also requires
efficient management of all canteen resources.
Determining the cost price of pre-package
items.
The cost price of a pre-packaged item is
the amount it cost the canteen to purchase that
item. Selling prices of items can easily be
determined using the wholesale price of goods,
especially as this price does not change.
Changes in price can be due to:
 Seasonal availability, particularly of fruit
and vegetables.
 Bulk purchase
 Discounted items and sales
 Competitive prices
Definition-Policies-Costing and Pricing
 Incentives
 Taste-testing opportunities
It is important for the canteen to have
standard recipes with strict quantities of
ingredients and standard serving sizes in order to
accurately price recipes.
Remember to cost out recipes accurately
by including all ingredients, even the butter or
chutney which is used in sandwiches.
Underestimating the cost of recipes – even for
small quantities of ingredients – can affect
profits in the long term.
Determining the Selling Price
After getting the total cost of the recipe,
compute for the selling price by using any of the
two methods as follows:
1. Food cost percentage method
Selling Price = material cost/desired cost%
Example: if the cost per serving of champorado
is P26.44 and the desired food cost percentage is
40%, then the selling price will be computed as:
P26.44/.40 = 66.11
The selling price may be rounded off to
P70.00 so that giving of change will not cause
problem anymore.
2. Mark Up factor Method, computed as:
Selling price = material cost x mark up factor
Mark up factor is equal to:100% divided by the
desired food cost percentage. If the desired food
cost percentage is 40%, the mark up factor will
be:100/40 = 2.5

Selling price per serving of champorado
P26.44 x 2.5 = P66.1
Suggested Selling Price is P70.00
The product cost percentage varies among food
establishments, depending on the desired mark-
up.
How to Market your Canteen
If the canteen is to be a success,
promoting and marketing the canteens healthy
foods is essential.
Use simple promotion and marketing strategies
to:
 Get children excited about changes to the
menu and increase the numbers of
students purchasing healthy food
choices
 Keep canteen sales and income
sustainable
The different aspects of marketing healthy food
choices in school canteens can be described by
the 4 P‟s:
 Product
 Place
 Price
 Promotion
The 4 P‟s are explained on the
following:
Product’
„Product‟ means not only the food that
are sold in the canteen, but also the image of the
canteen as a whole – the service, the canteen
Definition-Policies-Costing and Pricing
environment, how foods are promoted, and how
well connected the canteen to the school
community. Following are some suggestions to
market your canteen:
 Create a positive image for the canteen to
give it a higher profile in the school
community. For example, give the
canteen a catchy name that may attract
the clientele. This gives the canteen an
identity or „brand‟ which can be used for
advertising and marketing.
 Food companies place great importance
on naming products, as it is an important
component of overall marketing
strategy.
 Food name should be relevant to your
customer: the children e.g. in the run up
to the school‟s athletic carnival, food
names could be sporting flavor like
“Meatball Bolt” – four meatballs in a
tomato pasta sauce, in a whole meal roll
topped with low fat cheese.
 Use standard recipes and serve consistent
sizes.
 Carefully choose fresh fruits and
vegetables.
Place
„Place‟ refers to the canteen environment
and the way food and drink are arranged in the
canteen. The canteen should be attractive,
appealing place that everyone enjoying visits.
When planning the layout and appearance of the
canteen, consider whether or not it is easily
accessible, spacious, clean and attractive.
Following are some suggestions:
 Placing tables and chairs, and plants near
the canteen creates a nice eating
atmosphere. Some schools have created
an outdoor eating area with chairs and
tables under umbrellas or a sail.

 Why not involve the Arts Department in
creating a „nice place to be‟? Students
could design and paint murals on the
walls and colourful menu boards.
 Place healthy choices at the students‟ eye
level. For example, have fresh fruit
within arm‟s reach and position several
rows of bottled water at eye level.
 Make sure three is a well-stocked display
of pre-prepared healthy foods, for
example salad tubs and rolls and wraps,
to encourage impulse purchases of the
healthy kind.
 Rotate the position of products regularly
to generate interest.
 Consider selling at both the canteen and
via pre-orders, pre-ordering may make it
easier for canteen staff as it will enable
them to prepare and plan efficiently for
stock.
 Provide a catering service for morning
and afternoon teas for staff meetings and
other external meetings and events that
may be held at the school.
 Consider the canteen operating hours.
Price
The right product at the right price is
important. Children often look something to fill
them up at the cheapest price. They also
consider how much change they will have for
„extras‟. When introducing a new food, base
your price decisions not only on what is likely to
be appealing but also on what you can
realistically charge. Following are some
suggestions:
 Ensure that the canteen offers a selection
of low cost, filling, nutritious items such
as raisin toast, etc.
 Price food simply, for example $1.50
instead of $1.45, so that it is easier for
Definition-Policies-Costing and Pricing
students to pay and easier for the
canteen staff to give change.
 Before trialling a new product. Compare
the price of your product with in the
price in local shops.
 Make healthier options affordable and
preferably cheaper than unhealthy
options.
 Offer reduced prices on slow-selling
items.
Promotion
Promoting your products is one of the
most important factors in encouraging healthy
choices at the canteen.
Planning promotional activities is
interesting, exciting work. Schools find that
volunteers come „out of the woodwork‟ once
parents realize that their involvement in the
canteen can be so rewarding.
Below are some examples that may assist you to
promote the school canteen and its menu.
 Advertise new items, specials, etc in your
schools‟ regular newspaper.
 For younger children, separate notice can
be sent home advising parents of menu
changes or special promotions.
 A large noticeboard, with items and
prices clearly shown, is an excellent way
to ensure that the children know what is
available.
Reference/s:
School Canteen Handbook (2014):
“Management of a Healthy School Canteen”
 Definition-Policies-Costing and Pricing

MODULE TEST!

I. Enumeration
a. Give the 4 P’s how to market your canteen.
b. The two determining how to compute selling price.
c. 3 categories given by DOH for ensuring nutritious meal or menu.

II. Identification
1. _____________ your products is one of the most important factors in encouraging
healthy choices at the canteen.
2. The right product at the right ______ is important.
3. _________ refers to the canteen environment and the way food and drink are arranged in
the canteen.
4. _________ means not only the food that are sold in the canteen.
5. The _________ of a pre-packaged item is the amount it cost the canteen to purchase that
item.

III. Filling Up
Give at least 5 examples of Green Food initiated by the DOH and DepEd.
Foods Examples
Body-giving
(Go)
Body-building
(grow)
Body-regulating

IV. Essay
a. Why do we need to know the different categories given by the DOH and DepEd for
all public school canteen?
b. Do we need to follow this kind of Guidelines and Rules? Why, why not?
c. How can you help, as a near future teachers to provide nutritious and not expensive
meal for the students?

V. Research & Interview

a. Research how Red Categories affects the health of any individual specifically
pupils/students.
b. Interview atleast 3 persons who you know like to go to canteen, kindly ask them if
there are any experiences that they can share and memorable for them.