Why this matters 

Running a school canteen is not a simple volunteer activity. It is the operation of a business within a school environment, often with tight margins, significant regulation, and high expectations from the school community. 

In the ACT, canteen operations are particularly complex. Regulatory requirements, workforce costs and nutritional standards make canteens difficult to run sustainably, especially for volunteer-led organisations. 

ACT Parents does not provide operational advice on running canteens. This resource is intended to help P&Cs understand the scale of responsibility, the risks involved, and the realities of operating a canteen in the ACT, so they can make informed decisions. 

Canteens are businesses, not side projects 

Whether run by a P&C or not, a school canteen is a business operation. Where a P&C operates a canteen, it will be responsible for: 

• employing and managing staff 
• workplace health and safety obligations 
• food safety regulation and compliance 
• financial management and viability 
• coordinating volunteers 
• insurance and risk management 
• ongoing engagement with the school 

These responsibilities sit with the P&C as an incorporated association. They do not sit with the school or the Education Directorate, even though the canteen operates on school grounds. 

This requires sustained governance, oversight and capacity. 

The ACT context: why canteens are especially hard to run 

Canteens in ACT public schools operate under a highly prescriptive traffic light system for food and drink. These requirements are more restrictive than those in larger jurisdictions such as NSW and Victoria. 

As a result: 

• many pre-made or commercially supplied products cannot be used 
• ACT canteens cannot benefit from larger interstate supply chains 
• food often needs to be prepared on site 
• labour requirements increase significantly 
• operating costs rise while margins shrink 

Because the ACT is a small market, these pressures directly affect financial viability and sustainability. 

What this means in practice 

Across the ACT: 

• fewer P&Cs are choosing to operate canteens 
• some P&C-run canteens have closed 
• volunteer fatigue and burnout are common 
• sustainability is increasingly difficult to achieve 

This reflects the operating environment, not a lack of effort or commitment from P&Cs. 

Operating a canteen: the choices available to P&Cs 

In ACT public schools, a P&C’s role in canteen services is limited and clear. 

A P&C has two options: 

• operate a canteen directly, or 
• decide not to operate a canteen. 

P&Cs cannot engage external providers to run canteen services on school sites. Engaging external providers is the responsibility of the ACT Government and the school, not the P&C. 

What operating a canteen means 

When a P&C chooses to operate a canteen, it takes on full responsibility for the business. This includes: 

• employing and managing staff 
• meeting workplace health and safety obligations 
• complying with food safety and nutrition requirements 
• managing finances and long-term viability 
• coordinating and supervising volunteers 
• maintaining appropriate insurance and governance arrangements 

These responsibilities apply for as long as the P&C operates the canteen. 

Choosing not to operate a canteen 

Deciding not to operate a canteen is a legitimate and responsible option. 

P&Cs may choose this path where: 

• the regulatory environment is too complex 
• volunteer capacity is limited 
• financial risks are too high 
• sustainability cannot be assured 

This decision does not reflect a lack of commitment to the school community. It reflects sound governance and an understanding of risk. 

Reviewing and changing arrangements 

Circumstances change over time. It is appropriate for P&Cs to: 

• review canteen arrangements regularly 
• reassess capacity and risk 
• decide to step away from operating a canteen if it becomes unmanageable 

Decisions to start or stop operating a canteen should be made deliberately, documented clearly, and communicated transparently. 

Financial management and sustainability 

P&C-run canteens often operate on very tight margins. Where a canteen is struggling to break even or make a surplus, it is important to look closely at financial sustainability and adjust operations where possible. 

Some P&Cs have found it helpful to consider options such as: 

• reducing or shortening opening hours to better match demand 
• simplifying the menu to reduce food waste, preparation time and labour costs 
• moving to pre-purchase or pre-order meals, particularly for lunches 
• running special lunch days, where students choose from one or two set options 
• reviewing pricing, including whether prices still reflect rising costs 

There is no single solution, and what works will vary by school community. Any changes should be considered carefully, approved by the P&C, and communicated clearly to families. 

If a canteen is operating at a loss, the P&C must clearly understand how that loss will be covered, for example through other fundraising activities or reserves, and whether this approach is sustainable over time. 

Insolvency risk and why it matters 

Running a canteen as a P&C involves financial risk. One of the most serious risks is insolvency. 

In simple terms, a P&C may be insolvent if it cannot pay its debts as and when they fall due. This includes being unable to pay wages, suppliers, tax obligations or other liabilities on time. 

Trading while insolvent is a serious matter. Committee members may be exposed to legal and financial consequences if an association continues to operate while insolvent. 

Warning signs can include: 

• ongoing operating losses 
• difficulty paying staff or suppliers on time 
• relying on short-term fixes to cover regular expenses 
• using restricted or earmarked funds to meet day-to-day costs 

If a P&C identifies a risk of insolvency, it must take active steps. This includes: 

• closely monitoring the canteen’s financial position, not just term by term 
• ensuring regular financial reporting so emerging risks are identified early 
• making a clear decision about the financial viability of the canteen 
• documenting how any losses will be covered and for how long 
• avoiding taking on new financial commitments until the position is clear 

Where losses cannot be covered sustainably, the P&C must seriously consider whether it can continue to operate the canteen without exposing the association and its volunteers to unacceptable risk. Formatting put this in a text box 

P&Cs should seek advice early and rely on authoritative guidance if there is any concern about insolvency risk. 

Getting the right advice 

Because canteen operations are highly regulated, P&Cs should seek advice from authoritative sources, depending on their circumstances. This may include: 

• ACT Health – food safety requirements 
• WorkSafe ACT – workplace health and safety obligations 
• Fair Work Ombudsman – employment obligations 
• ACT Government - food business registration 
• ASIC- insolvency advice 

professional advisers for contracts, employment or financial viability 

ACT Parents can help P&Cs think through governance questions, understand risks, and identify when specialist advice is needed. We do not provide operational or regulatory advice about running canteens. 

Practical advice  

Practical advice for running a canteen is available at: 

ACT School Canteens: Business Manual - note that this manual was revised in 2022 and may contain some out-of-date information. 

A realistic and supported approach 

Deciding not to run a canteen, or to step away from operating one, is not a failure. It can be a responsible decision made in the best interests of the association, its volunteers, and its long-term sustainability. 

Strong P&Cs make informed choices, understand their limits, and prioritise wellbeing and good governance. 

Related resources 

• Employing staff: what P&Cs need to know 
• Workers' compensation 
• Insurance and risk