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How Brands Like Domino's Profit From School Lunch

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Roughly 30 million kids in the U.S. eat school lunch every day, and "Big Food" companies have a pretty big stake in what makes it on kids' trays. It starts with federal money, but before USDA funding makes it to cafeterias, many school districts order from food giants like Tyson and PepsiCo who grab a big slice of the school lunch pie. We hear a lot about school lunches in America and the food itself doesn't always get the best reputation. From Hollywood depictions to real life memories, the school cafeteria is a quintessential part of American culture. Who decides what food gets put on the tray? And how come one school serves this on a $1.25 budget, while another serves this? Why are teachers working at McDonald's for a night? And how does a slice of Domino's pizza meet USDA guidelines? Those are all loaded questions with complicated answers, but if you really boil it down the answer is money. Lots and lots of money. The billion lunches that get doled out in school cafeterias every year make up a multibillion dollar industry that makes sure millions of kids are fed. It starts with federal money but on its way to cafeterias, school districts have to order the meals and food giants grab a big slice of the school lunch pie. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Dominos #PepsiCo How Brands Like Domino's Profit From School Lunch
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Text Comments (5975)
オオタの旅日記 (29 minutes ago)
Living in both the U.S. and Japan as an elementary school student, I would say the lunch in the U.S. was horrible. The Japanese school lunches were thousand times better with REAL nutritious food.
Thomas Dinh (2 hours ago)
At my school a 1 ounce cup of ranch is 75 cents.
Fellow Citizen (3 hours ago)
Dear America, I don't even know where to begin. I'm sorry.
Sarah (3 hours ago)
Lol in Australia we have to bring our own lunch to school ✌️
SpikeMoney (5 hours ago)
In my opinion Little cities are the ones that havent changed, they say the funding isnt there.
Josh Kakkanad (10 hours ago)
This childhood obesity issue isnt something government should need to deal with it is something for the parents to deal with. My parents are blunt they say stop eating so much you're getting fat why do parents today not say stuff like that? Imo they're doing it for the benefit of their kids not anything else. School lunches are just getting to the point that no one wants to eat it because of the forced healthy diet stuff like sweet potato french fries and tater tots? Who would want that??
smallleopard (11 hours ago)
Our school cut juice claiming that will make kids fat.
Mike Andrews (12 hours ago)
"Why can't the kids eat healthfy"
Twinxlife (12 hours ago)
Tyson is evil
666dynomax (13 hours ago)
trump has the worst hair ever
Gabbi Durham (13 hours ago)
Did y’all steal a Vox video?
tyler abrams (15 hours ago)
I couldn’t even get whole milk in school
Babita Kumar (16 hours ago)
It's just sad to see that no one is thinking of the burden these poor choices in school lunches will place on the health system later on. Provide children with a balanced and nutritious meal and they will perform better overall. These children are the future leaders of the country, why is no one concerned about the crappy food they eat?
Happy (16 hours ago)
Carl Creighton (17 hours ago)
mmmmm school lunch pie
Chewy Tzu (18 hours ago)
My mom always makes my lunch.
Beautifully Bree (21 hours ago)
season the vegetables. easy. people dont know how to cook veggies well.
Beautifully Bree (22 hours ago)
american school lunch nutrition is a joke. European countries have it right.
TheLaXandro (22 hours ago)
Why don't people just take their own lunch with them?
Hcaz Htims (22 hours ago)
Pack your lunch then
Xusez (22 hours ago)
my school serves “pizza hut” pizza
GameAndBlox (23 hours ago)
Well my school atleast gives the wasted food to dogs and stuff
Unnatural09 (1 day ago)
I thought was literally vox... The narrator sounds familiar.
Nick C (1 day ago)
Cool cool cool capitalism is totally not ending the world cooooooooooooooooooooo
Paco (1 day ago)
Pfff in my country you have to go out of the school on big break (10-15min) in store,or bakery to get something to eat and it's much much more than 1.25$,and that's from first grade so when you're 6
Maor Aharon (1 day ago)
Good thing where I live you take your food to school
Joy Morgan (1 day ago)
They forgot about the mystery meat.
K (1 day ago)
I bet Andrew Ruis has seen a few penii in his days.
Heather T (1 day ago)
Money and profits rule supreme above a counties health and well being.
Meh Deb (1 day ago)
Food is the most fundamental need. How can we expect to grow our littles when their brains are starved for proteins and nutrients? We should be giving them the best food we can offer.
Matthew Barnes (1 day ago)
Pizza was always like very soggy the crust was very thick but you at the same time for some reason and don't even get me started on the burgers they were so dry Westview put the ketchup on it and that just me a little bit more moist 10% moist the tater tots we're actually pretty good I'm French fries were just soggy and dry at same time floppy
John D II (1 day ago)
What is that noise overriding the voice?
Betsy Norwood (1 day ago)
Surprisingly, my high school is really good about having all of the 5 food groups in the lunches. The lunches aren’t like a meal from Outback, but I’ve definitely had worse.
Diana McAllister (1 day ago)
India provides daily, healthy meals FROM SCRATCH to its school children. Don't try and tell me the United States can't afford the ingredients or time to do this as well. https://www.pri.org/stories/2014-07-17/indias-school-lunch-program-not-only-fights-hunger-it-can-breed-tolerance
AsF Cdark (1 day ago)
My school lunch is terrible good school but a few kids went home from food poisoning
vato (1 day ago)
American school lunches are quite disgusting (experienced than myself) and the plastic trash leftover from them is enormous. Why aren't they using standard silverware and plates? There are atonomous machines for cleaning it afterwards
Kerbalnaught (1 day ago)
What I think is wild is that the USA has areas where people are given lunches that cost $1.25 because that is the poverty of the area. Maybe if more was focused on developing these areas, they would one day not need to hand out lunches because every child would be fed.
pine apple (1 day ago)
poor americans
Smith (1 day ago)
jacky dust (1 day ago)
Time has come, the rich envying the poor with even EATING, than time has come, WHEN companies won't be able to buy there own stuff, for their staff will have to suffer, as they will prevent their own children from eating and are mean, knowing how to be mean and nothing more . THEY will Start to fight against each other in greed and violence, for this psychopaths will run out of money and they will steal from their customers, which they already begun.
jacky dust (23 hours ago)
+Jammin Clemmons https://tse1.mm.bing.net/th?id=OGC.f2b00b2285d51b08dd94244b105071cb&pid=Api&rurl=https%3a%2f%2fmedia.tenor.co%2fimages%2ff2b00b2285d51b08dd94244b105071cb%2ftenor.gif&ehk=WXVpl6oltCPX0K3vhvXtbg
Jammin Clemmons (1 day ago)
* *Mr. Jacky Dust* * - Šta je taj jebeni pakao? Vi neznani ljudi vjeruju da je sve što vam je hranjeno (kašikom) pročišćeno? Trebalo bi da budeš sramota što te čak zove ljudska bića. Pokajte se! - Idi Amerika i SAD! - Neka vas Hristova sila potresa! Ti i ti ćeš se kupati u sveti vodi, Sada ... odmah, kažem!!
Jack Laskowski (1 day ago)
$1.25 meals??? Mine were over 5 bucks and it was the same garbage! They wanted $3.50 for a single piece of pizza! That didnt even include a drink or side!!!
Chakat Nightsparkle (1 day ago)
Free Lunch at School had always sucked. all it was, was a peanut butter and jelly sandwich, and the peanut butter and jelly didn't even cover all of the bread was spread on it in a way so was just slightly in the middle very thinly. was about 95% bread and that is all. No Milk, we got a cup of water. That was School Lunch. and They still serve that as Free Lunch today 17 years later.
PB (1 day ago)
dont forget about the students they make work in the lunch room for free when the schools cant afford enough workers.
Blahblah (1 day ago)
"Studies show if kids are fed they perform better in school" .... well duuuh!! Hearing about how kids go no food or basically cardboard food makes me so sick. This is horrible and an absolute embarrassment for a "1st world country". Crooks need to go to jail for this abuse and people with a heart need to be promoted into leadership.
ocean man (1 day ago)
Shout out to my school lunch teacher that let me take 2 pizzas for free. This goes out to you Mr. T.
Wesley Martins (1 day ago)
Communism. All that matters are the jobs. Screw those kids.
lifeofcarrot (1 day ago)
It's a vicious cycle. Companies like that make sure kids are well used to eating their products by the time they become financially productive. Once that happens, they'll keep on supporting and buying those products. When they have kids, they will think nothing of the fact that this is fed to their kids and won't advocate for change. Their kids will be used to these products from school as well as from home and the vicious cycle goes on. This is nothing but long term brainwashing to ensure profit from generations onwards. How do we let these companies do this to us.
Oscar Bergström (1 day ago)
Noma is not in that building anymore
Serious Guy (2 days ago)
I don't get the idea of school meals, just eat at home ¿
Gecko o (2 days ago)
It seems to me like Mexican dictatorship tried to copy the model from the united states, that is why they were advertising cheetos as a nutricious option. No one bough it and right now that is one is remembered as one of the greedies advertisements.
Dlard (2 days ago)
Mikei Petersenn (2 days ago)
We love Domino. The food is good.
Jamari Riptoe (2 days ago)
i'm hungry well time for some domino's. foh
Collin Hennessy (2 days ago)
So poor people have more kids, and the government cuts prices wherever they can? That's socialism.
Collin Hennessy (2 days ago)
How is capitalism uniquely American, and how are school lunch programs capitalist? Some kids get free or discounted lunches, while kids from higher income families have to pay full price. I never went without food at school, even if I forgot my lunch money for days in a row, and forgot to pay it back for weeks. I just couldn't get ice cream or extra milks, which I didn't need.
Collin Hennessy (2 days ago)
How are those loaded questions?
KPOPFANBOYUK (2 days ago)
cosmicnights (2 days ago)
Got to take your own lunch in Australia. Or use tuckshop.
Shifty Gaming (2 days ago)
Drop your lunch number mine is 3835
Xnate13X (2 days ago)
6:57 These are the "Fruit by the foot" in school lunches design now? That's the design from the 90s/early 2k's before they switched the design! :p
Zain Chupacabra (2 days ago)
These companies kinda remind me of The Keefe Group from that Whole Shabang video.
Hakob Enfiajyan (2 days ago)
I remember how good school lunch was back in the day until Michelle Obama's lunch program came in. Nobody even ate the crap anymore and I can be sure that at least half the food schools today receive goes straight in the trash bin. I feel sorry for the kids that have to endure all of this. I remember before the 2012 days when we got chocolate milk,chicken nuggets,chicken wings,pizza. Kids these days will never know dat feel of going to lunch and eating dem chicken tenders.
dahlia (2 days ago)
+Hakob Enfiajyan So because she added some veggies and took away some fried food you're trying to tell me kids would rather starve?
Hakob Enfiajyan (2 days ago)
+dahlia she made the food so bad that kids like me either had to eat old boiled eggs for lunch or starve for the whole day until I got home. Kids who had a lot of money to spend just spent it at the vending machine. If you were a kid that didn't get weekly money from his parents so you relied on school lunches then your tour was over. You had to eat the boiled egg or wait until you got home. You might be young so you probably weren't in Junior high or high school when we got chicken tenders,chocolate milk, and cranberry juice for lunch so the horrible lunch you're getting today is all you've ever seen
Hakob Enfiajyan (2 days ago)
+Gains And Glory No, I'm in college
dahlia (2 days ago)
+Gains And Glory I'm a senior, I don't know if you're talking to me though.
Gains And Glory (2 days ago)
Are you still in High School?
pureum kim (2 days ago)
I am mixed on this. First shame on some firms trying to dupe the kids, our future, and the school. Second, some firms are trying to a bit better and it is also true some ill equipped schools can't do much. In such case, the big food companies are very helpful. Finally, not sure if mandatory school lunch is a good thing. People have different preferences and just forcing is not always effective. Lot of students don't eat vegetables at home so why would they eat at school? I understand you have to teach healthy living and healthy habits but shoving it to teenagers...well..good luck. I have not seen a teenager who said I loved to eat vegetables because I ate them at school for lunch. Anyway, hope they keep improving the program and make it nutritious and cost effective.
Herman Ochoa (2 days ago)
I never ever eat at school or bring lunch lmao
Benjamin Leray (2 days ago)
jheez. my caf food here in canada is 7$ a meal and although its healthy, no one buys it cuz it isnt kids food.
Jammin Clemmons (1 day ago)
Šta je taj jebeni pakao? Vi neznani ljudi vjeruju da je sve što vam je hranjeno (kašikom) pročišćeno? Trebalo bi da budeš sramota što te čak zove ljudska bića. Pokajte se! - Idi Amerika i SAD! - Neka vas Hristova sila potresa! Ti i ti ćeš se kupati u sveti vodi, Sada ... odmah, kažem!!
55LOVE Humanity (2 days ago)
Go back to scratch cooking. Aroma of real fresh foods, being baked and cooked by the cafeteria workers. Pay the caferteria workers real salary. Check out how much they make. Sad. Corporate already makes too much money. Bring back fresh food, it will make healthier kids. If you Cook it and it smells great through the hallways...watch kids eat it. 💜 Check out Japananes School Lunches: https://youtu.be/fze5s1SlqB8bb
MrWhite (2 days ago)
11:15 Misspelled Guideline, gg CNBC
Ramiz Haddad (2 days ago)
+MrWhite Firstly, its generally irrelevant to the message of this video. Secondly, the video's message has more impact on our society than that minuscule mistake. Again, its a mistake and not an intentional misspelling. This isn't an attack on our language or its preservation but merely an overlooked issue that an editor should have fixed. I'm not saying you're wrong for wanting higher quality from a more professional news source, but, we should be discussing the message of the video given its actually affecting the amount of tax money we spend, where its going to, how its treating our citizens and what should be changed.
MrWhite (2 days ago)
I would tend to disagree, considering it's an issue of the preservation of the form of our language and you're debating me on it. Seems to have become an issue, hasn't it?
Ramiz Haddad (2 days ago)
Its a non-issue.
Karman Bassi (2 days ago)
never rely on the government for anything, it's the opposite of capitalism
Aggu Kristian (1 day ago)
Komodo Nation (2 days ago)
Wow did they just talk about trump and not try to joke about him or slam him? Wow I’m impressed
GW Epyon (2 days ago)
I know. its so disappointing.
wafflecougar (2 days ago)
Yeah, Michelle Obama, the one meal kids have at school is whats making them obese
dahlia (2 days ago)
wafflecougar Here's an idea: The kids getting one meal a day *aren't* always the ones getting obese! Woah! Oh but no, go ahead and blame Michelle.
SweetGameplays (2 days ago)
copperblaze22 (2 days ago)
No one eats lettuce on a hot dog.
Karthikeyan Jayachandran (3 days ago)
Thank God, I'm not born in Capitalerica
big ounce (2 days ago)
+Karman Bassi You have a distorted incorrect view of socialism, and capitalism for that matter.
Karman Bassi (2 days ago)
lol relying on the government for your food is socialism not capitalism
Rapid MagickzZ (3 days ago)
How tf did I get here
Jammin Clemmons (1 day ago)
Šta je taj jebeni pakao? Vi neznani ljudi vjeruju da je sve što vam je hranjeno (kašikom) pročišćeno? Trebalo bi da budeš sramota što te čak zove ljudska bića. Pokajte se! - Idi Amerika i SAD! - Neka vas Hristova sila potresa! Ti i ti ćeš se kupati u sveti vodi, Sada ... odmah, kažem!!
someone (3 days ago)
Jeremy oliver is a well known chef in england who changed our school lunches to being healthier. We didnt get fries and burgers everyday but still our lunch is 10 times better than americas
Zain Chupacabra (2 days ago)
+someone Cool!! I'm talking with a genuine Brit right now.
Smol Keeper (2 days ago)
Nobody asked nigher
someone (2 days ago)
+Zain Chupacabra yes
Zain Chupacabra (2 days ago)
Do you have an English accent?
TobiIsAGoodBoy1 (3 days ago)
thats kinda F'd up. sueing schools for feeding kids = lost profits for your hotdog stand.... They'ed rather sell or let the poorer kid starve then had them fed.
The Trashman (3 days ago)
Man, the US is corrupt through and through, huh
FutureLaugh (3 days ago)
here ya go kiddo, the Govt bought my old meat and now its yours. The Govt stealing your money via taxes and forcing you to buy corporate foods to feed kids at school- text book definition of capitalism lol
stealthde1 (3 days ago)
As a Canadian this whole issue makes no sense to me. We have a very different individualistic stance on school lunches. We don't have cafeteria style food that is funded through government program. Government is entirely unnecessary. Every child typically brings a bagged lunch from home. We occasionally have hot lunch days as a special treat once or twice a month. Parents pay the School five dollars or so for each of the special occasions. Otherwise parents are responsible for their child's needs and everyday pack a nutritious lunch for their kids OR have their child PACK THEIR OWN LUNCH AT HOME THE NIGHT BEFORE! Parents and not a government body do a much better job of ensuring that their children eat properly. Some of the most beneficial life skills I ever developed were while my parents showed me how to prepare food and pack a lunch from the age of five. Use making lunches at home and opportunity to teach kids how to cook. This issue can be resolved by having parents be responsible for their child's food. The only exception to this situation would be for children that come from dysfunctional and abusive homes that are not fed regularly. Thats a case by case situation. Plus having children pack their lunch under their parent supervision at Home, teaches them how to eat properly. Rather than just consuming what is on their plate the children are involved in the preparation of their own food. I rarely ever wasted anything from a lunch that I made for myself!
Jayblez 42018 (3 days ago)
Everyone bring your own lunch and shut up. If you can't afford it then eat a rock
Berelore (3 days ago)
The actual FDA nutrition standards are based on junk science and intuition. Listening to the government about your nutrition and exercise is a good way to end up obese and diabetic.
B D (3 days ago)
Number one cut the lobbyist number two don't give kids all that sugar when they're young it's like a drug give them natural fruits and vegetables don't give them chocolate don't give them candy limit with a get as I get older let her have a little bit introducing two fruit and vegetables first number three look at the whole picture why is obesity rate Rising so much since the seventies why are we so fat as a country what is the cause of it and what can we do to prevent it couch potatoes is not moving enough exercise to burn the calories or are we just taking too many in can we eat better what can we do
Noboil Frog (3 days ago)
People farming, feeding the poor to the rich. USA..USA..USA..🇺🇸🇺🇸
Keegan Boldt (3 days ago)
How come Tyson gives the schools crap food compared to what they sell in stores.
DK1 (3 days ago)
This is why Americans are so fat.
Lolita Lolito (3 days ago)
Send your kids with homemade lunches 🤷🏻‍♀️
Shaurav Kumar Yadav (57 minutes ago)
+dahlia Im not very familiar with US households, but is it rare in US to send children to school with home cooked food?
dahlia (2 days ago)
Lolita Lolito You're completely disregarding impoverished families that don't have food.
Marios Doumou (3 days ago)
It's a poor country. Don't have the luxury to provide more to their children. ...Oh wait! This is America! lol
Marios Doumou (1 day ago)
There is no excuse to make profit out of children feeding them junk food. Period.
Free Willie (1 day ago)
Don't think you realize how much more expensive it would be for the government to provide the food. People wanted affordable food for children, then complained when they go it.
SquidCake (3 days ago)
At my high school here in Maryland, where we have multiple farms all around our schools, widespread and plentiful, I'm one of the few that drinks normal milk. It's always a hit or miss with the normal milk here, since all of them are always expired or unbearably close to the expiry date. I ask why it's such an issue and they're saying I'm just unlucky. The thing is, I look at the chocolate milk, and they're always nearly 5 more days ahead of the expiry date of white milk. Nobody says anything about it being sour except me, since I'm the only one who ever drinks it. It makes me gag.
SingingintheDark (3 days ago)
funding is not the same as subsidizing, school lunch was government subsidized, not funded, you still had to pay for your meal, and that money went to the company the made the food, the government only gave tax breaks to people willing to be a part of the program, get your story straight cnbc unless you are going the route of other fake news sites. and why would giving a tax break to those willing to feed out children be a problem? you dont like what they are feeding your child then you make their lunch yourself, no one is or has ever forced parents to use the cafeteria for their children, your children are your responsibility, if you are not making sure they eat right, then it is your fault, not the government and not the people feeding your children. they only feed them because you are not, so no one can say crap about it.
DKBz DarkLaw (3 days ago)
Better going off campus and spending a little less for a burger at Mcdonalds or a couple tacos at Taco Bell or Jack in the Box and save a little than going to school and getting the $3 tasteless stuff. I went to Jack in the Box all the time, and got either 2 tacos or chicken sandwich, and usually got free water to boot. Or make lunch at home. The reason that school lunches go up, just like everything else is inflation. If I take a dry chicken patty that costed $1.50 10 years ago, is now $2.09 today(if my math is correct) considering U.S. average inflation rate for is 3% annually, but prices vary. Maybe that chicken patty is still $1.50, maybe its cheaper. Maybe its $100 if Gordon Ramsay manufactured it.
MLG TURTLE (3 days ago)
you cant find a single thing in America that is not a business
Shaurav Kumar Yadav (1 hour ago)
Capitalist country.
Phil Rabe (3 days ago)
7:50 if you are telling current quotes from companies made in 2018, why use the retro "scratchy old movie" filter / overlay?
Jennie Sapherson (3 days ago)
And UK is following
WarBoy (3 days ago)
just prepare your kid's lunch and stop depending so much on other people for everything lol
Aggu Kristian (1 day ago)
Not everyone is spoiled like you kiddo.
Donald Boyajian (4 days ago)
One glaring issue not addressed: why there's be an explosion in reliance on government subsidized lunches.
Michael Knight (4 days ago)
All of those meals look better than what the standard fair was at my school 10 years ago.. the shipped in ghetto kids that were still hungry got quarters from all the privileged kids spending 6 bucks on some trashy food shipped in by some company or w/e (just to be full). I brought my lunch to school.
david phillips (4 days ago)
And he said, Whereunto shall we liken the kingdom of God? or with what comparison shall we compare it? It is like a grain of mustard seed, which, when it is sown in the earth, is less than all the seeds that be in the earth: But when it is sown, it groweth up, and becometh greater than all herbs, and shooteth out great branches; so that the fowls of the air may lodge under the shadow of it
Jaysful z (4 days ago)
Whoa did CNBC make some new hires from Vox?
Rikashey (4 days ago)
Lunch used to be great until Michelle Obama ruined it.
LazySkull (4 days ago)
the Dan Giusti guy and his team are heroes.