The Kansas City (Mo.) School District had hoped that privatizing its food service would reap a half-million dollars in profit. But after two years — and a loss approaching $3.5 million — the school board has decided not to renew its contract with Chartwells. Instead, the proposed $6.7 million contract for next year will be opened to new bidders. Chartwells was selected over Sodexho USA in 2006 in a bidding war that had both companies making grand promises. For a fee, they were going to keep the district’s frontline workers in their jobs, upgrade cafeteria equipment, improve the food selection, draw more students into the cafeteria lines, and turn a profit for the district. But Chartwells says the district provided inaccurate enrollment projections, increased salaries more than anticipated, and allowed more students who should have been paying for meals to eat for free.
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