DBL Investors News
DBL Investors News
May 29, 2009
School lunches fuel healthy business
By David Morrill
Staff writer
Contra Costa Times
OAKLAND — As the rough economic waters struck Bay Area companies, some were washed away and others surfaced intact.
For Revolution Foods not only did it stay afloat, but it's grown as if it's been riding a tail wind since it first launched in 2006. The Oakland company that specializes in providing healthy meals for students brought in revenues of $10 million in its third fiscal year ending in June.
The majority of the roughly 100 schools it serves are public or charter schools with a "smidgen" of private facilities throughout the Bay Area. It plans to double the number of schools served this year through new sites in Denver and Washington ,D.C., set to open in the fall. It also plans to increase its workforce significantly as well.
"I think we've been able to survive the economy because we made our platform affordable from the start," Kristin Richmond, 34, chief executive said. "So when others had to manage their costs, it was something we had already been doing."
In April the firm moved from Alameda to a 20,000 square-foot facility in Oakland near the Coliseum. The company is not funded by the government, but rather a group of investors.
"It's important that as a company we are sustainable, so we make sure we don't waste anything," Richmond said. "We manage our costs down to a half penny sometimes."
In the wee hours each school day, while students are still asleep, workers in the headquarters are in full operation.
Everything is prepared fresh each morning. If a sandwich needs to be made, it starts with two slices of bread the morning it goes out.
Revolution Foods was a culmination of a vision between Richmond and her co-founder Kirsten Tobey, 31. Having met at the Haas School of Business at UC Berkeley in 2004, both sought to create a social venture that would help students.
"We really want to transform how we feed our students by giving them healthier and more sustainable food," Tobey said.
Each meal is carefully planned and portioned to meet federal requirements so low-income students can qualify for reimbursement. A meat, vegetarian or non-dairy option comes with each.
Most of the meals are cooked at the headquarters, and driven out to school sites in specially insulated trucks.
One of Richmond's favorite meals is an all natural barbecue chicken on top of Yukon Gold potatoes.
"If we have a hot dog, we're not talking about a tofu pup," Richmond said. "It's a healthy no nitrate, no hormone dog on a whole wheat bun."
The duo believes that if classrooms are going to teach about the importance of good health, they should provide it in the cafeterias as well.
"It doesn't seem right for students to come from what they've learned and then be exposed to Cheetos or food in a Styrofoam container," Richmond said.
Educational posters might accompany a new menu item to give students an idea why wheat bread is better than white for example.
In total, about 20,000 meals are prepared daily for more than 100 schools. Most of the schools are in the Bay Area, but they also serve some in Los Angeles and San Diego, where the company also has facilities.
Although nearly all of its revenue comes from the schools, Revolution Foods has a product line as well. Through a partnership with Whole Foods, the company has products with fun names such as Mashups, Jammy Sammy's and PopAlongs. The products can also be found at Toys R Us, Babies R Us, and through its Web site www.revfoods.com.
In the beginning Richmond and Tobey did everything they could to chip in. If another cook was required in the food line, then they were grabbing an apron.
Today, through the company's success, they are able to hire workers to do those duties for them. Many of the positions are held by employees from low- to moderate-income households. Many of the employees are parents of students that attend the schools.
They also find people via word of mouth and ads on job sites.
Every employee from the line cooks to the owners also have ownership options in the company.
"It's really important for us to try and become a part of the community that we work in," Tobey said. "We want to treat our employees fairly and give them what they deserve."
Staff writer David Morrill can be reached at 925-977-8534 or dmorrill@bayareanewsgroup.com.
Company Name: Revolution Foods
Founders: Kristin Richmond and Kirsten Tobey
Headquarters Address: 8383 Capwell Drive, Oakland
Web site: www.revolutionfoods.com
Revenues: $10 million, fiscal year ending June
Employees: 125
Expansion plans: Expected to open in Washington, D.C., and Denver in fall
Sampling of areas served: Hayward, Oakland, East Palo Alto, Redwood City, Richmond, San Francisco, San Leandro