PepsiCo hits the books with 3-in-1 school outlets

Nation's Restaurant News, Sept 28, 1992 by Peter O. Keegan

MISSION VIEJO, Calif. -- The opening of a PepsiCo three-in-one food court at a Southern California high school here marks the latest chapter in a non-traditional learning experience for the fast-food franchisor.

The launch of the three-in-one School Lunch Program food court -- featuring a limited menu of Taco Bell, Pizza Hut and KFC products -- at Capistrano Valley High School could have far-reaching implications for Taco Bell, the chain that is spearheading the test. If the one-year pilot project proves successful, similar food-court units could spring up around the state.

PepsiCo has tested combination units in various configurations and sites -- from zoos to supermarket food courts -- in such markets as Columbus, Ohio; Louisville, Ky.; Cleveland; Kansas City, Kan.; and Miami. But this test is the first in-school combo unit it has tried.

Bill Caldwell, foodservice director at Capistrano Unified School District, and school district nutritionist Dale Neff selected the menu items chosen for the pilot program, doing in-depth nutritional analysis on the foods and their content.

"We want to provide our students with food they want to eat, while educating them about nutrition," Caldwell explained. "this is what the kids want; it will keep them on campus on schools where there are open campuses."

Items include a taco, soft taco and bean burrito, 65 cents; a chilito, 85 cents; a combination burrito, $1.05; plain or pepperoni personal pan pizzas, $2; pizza slices, $1.25; the Colonel's chicken sandwich, $1.90; Kentucky Nuggets, $1.70; and crispy fries, 85 cents. Caldwell said he expects bone-in KFC chicken will be fried in the future.

The food court also features Pepsi-Cola fountain products for $1, milk for 30 cents and an assortment of Frito-Lay products, such as potato, corn and nacho chips.

But while some school and PepsiCo officials think that the food court will keep kids on campus, dieticians worry that the high-fat content and PepsiCo's marketing clout might overshadow the role of nutrition in school lunches.

"I'm worried that they will not be getting enough fruits and vegetables because it's mostly protein and carbohydrates," said Susan Magrann, a registered dietitian who is working on a three-year government program applying the "nutrition triangle" to school lunch programs.

"Schools must offer healthful choices, and I don't see Taco Bell as a healthful choice; those foods tend to be on the higher fat side."

When told that there were healthful choices available, such as free fruit and a salad bar, she said: "I'm hoping that the other choices are as attractive and are being promoted as heavily as the PepsiCo items. My concern is how the students are balancing out the meals. Teens can eat this stuff every other day if they are balancing it out with other nutritional meals."

Caldwell said he would work with Taco Bell to possibly develop new foods for the program if it is expanded throughout the school system. "I would like to see a vegetable taco and a grilled skinless chicken breast sandwich," Magrann remarked.

Caldwell believes that there is a myth that fast food is unhealthful and said he has gone to great lengths to select a nutritious menu for the school. "PepsiCo is leading the fast-food industry by being more responsive to dietary needs," Caldwell noted. "We have had no calls or complaints, and our contacts with parents and teachers have been very positive. This is what the kids want."

He also pointed out that the interest on the part of private enterprise could ease the increasing burden on school foodservice administrators to work with tighter budgets and strict guidelines.

"Taco Bell's new-concepts division was looking for a school district to develop a pilot program which, if successful, will be rolled out to other schools," Caldwell said. "It's a marriage of public and private enterprise and is a direction we need to move in in the future."

In affect, the San Juan Capistrano School district becomes a Taco Bell licensee. But Taco Bell, which is based in nearby Irvine, Calif., conducts much of its product testing in the area and will be monitoring the project as it evolves.

Taco Bell pays royalties to sister PepsiCo companies Pizza Hut and KFC, but the structure is different from normal franchise fees.

Housing 2,200 high-school student's the campus is closed, meaning that students cannot leave the grounds at lunchtime. During students' half-hour lunch period, they can pick up boxed items from the L-shaped counter and pay from them at four cash registers -- or at two walk-away windows -- and eat in a common dining room or outside.

"We've taken out the cafeteria system and remodeled the whole place," Caldwell said. "Taco Bell helped to fund the equipment for the transition." The school had its foodservice workers trained by Taco Bell, KFC and Pizza Hut, and they work alongside 14 PepsiCo employees, all wearing company uniforms.

The difference between this program and those of the other 1,700 schools that Taco Bell services is that the food is prepared on premises. The school, which previously rolled in carts of branded foods, continues to offer sandwiches, hamburgers, a salad bar and frozen yogurt -- with an average ticket between $1.50 and $2.