Holmdel district recognizes cafeteria staff, discusses Chartwells finances and proposed meal-price increases

The Holmdel Township School District Board of Education on May 14 recognized cafeteria employees and received a financial update on its food-service contractor, Chartwells.

At the start of the meeting the board presented Holmdel pins to school cafeteria staff in observance of School Lunch Hero Day. “So on behalf of Holmdel Board of Education, we'd like to thank you for all that you do,” Business Administrator Debbie Donnelly said as staff were invited to the front for photos.

The board then reviewed Chartwells’ year‑to‑date financials. Debbie Donnelly said sales for April year‑to‑date increased by nearly $60,000 and that free‑and‑reduced meals rose by about $12,100 during the same period; Chartwells covers those meals under its agreement and does not receive offsetting revenue for them. Donnelly said Chartwells returned purchasing credits to the district of more than $106,000 year‑to‑date and that personnel costs rose modestly because of the vendor’s union contract.

Donnelly told the board the district plans to present a meal-price increase for action at the June meeting: elementary lunches from $3.50 to $3.80 and complex (middle/high) lunches from $4.25 to $4.40. She said if sales volume holds steady, the proposed increase would generate about $36,000 in additional revenue for 2026–27. Donnelly also noted a five‑year amortized $275,000 renovation commitment Chartwells made as part of its last RFP; that amortization (about $55,000 per year) ends in the 2026–27 year and has affected program operating results.

Donnelly said the current contract guarantee is to break even and that, after accounting for increased free/reduced meals and the remaining amortization cost, the program is operating at a loss year‑to‑date. She said if those two items were excluded, the program would show an approximate $18,000 profit year‑to‑date. Donnelly reported Chartwells expects food costs to rise in future years as vendors respond to requests to remove dyes and additives from menu items.

Board members asked follow‑up questions about top choices by school and year‑over‑year comparisons; Donnelly said the requested top‑10 data had been provided previously to the board and that additional financial detail had been shared with board members.

No vote on Chartwells’ contract or the price changes was taken at the meeting; Donnelly said the pricing proposal will be presented to the board at its June meeting for formal consideration.

The presentation closed with board members thanking Chartwells staff and the district for operating the kitchens without additional hires this year, despite the financial pressures donors and the district are absorbing.

The board’s discussion was limited to the agenda item; public comment on unrelated topics was reserved for the meeting’s public‑comment period.