Ansoff helps with the school lunches

In a great example of market development, Wittersham Primary School dinner ladies have found a new market for their product by selling school lunches to local residents, not just the school pupils.

The adult diners book in advance, pay £3 for their lunch and are shown to their tables by Year 6 pupils acting as hosts. This is new competition for the local pub where the landlady questions the economic viability of serving lunch for £3, but consider the breakeven analysis – the school has its own kitchens and two dinner ladies, and fixed costs per unit were rising as fewer children were opting for school meals. Adding a further 20 customers per day to the sales revenue means that the fixed costs can be spread further; as bookings are taken in advance they can be sure of the amount of stocks needed, the variable costs remain at about 62p per head giving a contribution of £2.38, and the potential for reaching breakeven point is greater.

The dinner ladies waste nothing, and prepare, serve and clear up lunch for more than 100 – the extra effort involved for 100 compared to 80 is minimal and their jobs are more secure. For the customers, many of whom are retired, the cost of £3 can be offset against savings in their own electricity bills and shopping, as well as the benefits of social company, warm food and a good helping of nostalgia.

They seem very appreciative as well: “This is much better than any restaurant,” one diner said. “I’ve booked my table for the rest of term.”