Saginaw, Mich. Schools Outsource Foodservice To Sodexo Magic

Aug. 22, 2011

The Saginaw, Mich. school district voted to privatize 59 jobs of food-service employees, saving an estimated $985,110 per school year, approving a one-year, $3,640,808 contract with Sodexo Magic, a joint venture of Sodexo and former basketball star Earvin “Magic” Johnson, to operate food services in the Saginaw district, according to The Saginaw News.

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Editor’s Insight: Refreshment service operators who provide institutional foodservice need to promote the cost savings they can provide customers that have inhouse foodservice operations. In this case, the district will save money and an additional 10 employees will be hired.

This situation is largely due to the skyrocketing costs of public employee retirement programs that public agencies must pay but private contractors do not have to pay. 08-22-11 by Elliot Maras