Contractors like Sodexo promise to deliver better service at lower cost. However, according to some reports, Sodexo has created inflated food costs for publicly funded schools, hospitals and universities.

Sodexo has also not always been quick to get on board with the plans adopted by the districts that they serve.

Investigations and testimony have shown that Sodexo has a history of:

• Generating hidden revenue from kickbacks that appear to inflate costs
• Not working with some districts that want to provide healthier food

Kickbacks

In March 2009, In These Times ran an investigative report that claimed Sodexo generates hundreds of millions of dollars each year in revenue from kickbacks provided by food manufacturers and distributors, which appear to have led to inflated food costs for some publicly funded schools and possibly other institutions.

The article lead with an allegation made by a Rhode Island-based child nutrition advocate Dorothy Brayley that Sodexo was over-charging districts for milk in order to generate back-end revenue.

» Read more about kickbacks that Sodexo receives.

As school districts move towards healthier school meal choices, Sodexo has not always been quick to get on board with the plans adopted by the districts that they serve.

The Plymouth-Canton (MI) schools decided to eliminate a la carte options--less nutritious than balanced school meals--from their lunch rooms. Jim Larson-Shidler, Assistant Superintendent for Business Services, explained that Sodexo had told the district they would make less profit if they eliminated a la carte.

Larson-Shidler's recommendation, which the board accepted, was that the district end their 20-plus-year relationship with Sodexo and take the food service responsibilities in-house. Larson-Shildler said he believes an in-house program could be better-run and save 5 to 6 cents per meal, or $90,000 a year.