REDUCING 

MEAL COST IN 

MARYLAND 

Bethesda NEWtrition and Wellness Solutions
 

 

 

MDMP Goals 

1. Reduce meal costs by 20% 

2. Increase number of meals by 25% 

2018 data (baseline) If goal is met: 

Meal costs: 

Home-delivered $5.50 $4.40 

Congregate $4.98 $3.98 

Number of meals: 

Home-delivered 1,215,523 1,519,404 

Congregate 1,050,305 1,312,882
 

 

Questions 

1. How does Maryland compare to national averages? 

2. How can we decrease the cost of meals statewide? 

3. How would a single vendor for the entire state compare to a multi-vendors 

system? 

4. Do other states have models that we could use? 
How does Maryland compare to 

national averages?
Answers...

◦ How does Maryland compare to national averages?

◦ Maryland costs are higher than the most recent national average

$6.00 $5.55 

$4.56 

$5.13 

$4.34 

$0.00 

$1.00 

$2.00 

$3.00 

$4.00 

$5.00 

Home Delivered Meals Congregate Meals 

2017 Maryland Average Costs 2015 National Average Costs 

2017 2015 2017 2015
How can we decrease the cost of meals statewide?
Answers...

◦ How can we decrease the cost of meals statewide? 

◦ Use vendors with lower costs 

◦ Choose lower cost foods 

◦ Make meals in-house instead of using a vendor (reduce food cost) 

◦ Use MOWCM (volunteer labor) 

◦ Make “special” meals wisely

◦ Use a “coalition” approach to increase purchase power and stabilize price range (in order to partner with a member of a

coalition of AAAs the costs for food, labor, transportation, etc. must be within a determined range) 

◦ This would stabilize price point and give the AAAs more leverage with vendors 
Here’s the supporting Data...

Maryland, 2019
Specialty meals vs. statewide averages 

Specialty meals tend to cost more than regular meals. These higher-cost specialty meals include 

those labeled as Korean, Kosher, and Special. 

Average Meal Costs 

$9.00 

$8.00 

$7.00 

$6.00 

$5.00 

$4.00 

$3.00 

$2.00 

$1.00 

$0.00 

$8.17 $6.49 $5.85 $5.85 $5.46 

$5.50 

$4.98 

Kosher Special Korean Frozen Shelf-Stable 

Specialty Meal Average Costs HDM (State-wide average) Congregate (State-wide average) 

(HDM)

(Congregate)
 

 

 

 

Food Costs vs. Labor Costs 

Food costs make up the majority of the total cost of meals. However, when a AAA uses Meals on 

Wheels, they have consistently lower food and labor costs when compared with when meals are prepared 

by a commercial vendor (not including special meals and specialty foods) or a AAA’s central kitchen. 

Food Costs 

Prepared by: Average Range (min-max) 

Prepared by AAA Central Kitchen $3.35 $2.19 - $4.45 

Prepared by a private vendor (not including special meals) $2.83 $2.00 - $5.24 

Prepared by MOWCM (not including special meals) $2.55 $0.66 - $3.85 

Labor Costs 

Prepared by: Average Range (min-max) 

Prepared by AAA Central Kitchen $1.05 $0.00 - $3.03 

Prepared by a private vendor (not including special meals) $1.10 $0.00 - $3.01 

Prepared by MOWCM (not including special meals) $0.53 $0.00 - $0.96 
Discrepancies in vendor costs 

COST 

P

ER 

M

E

AL 

In some cases, different AAAs will pay very different prices for the same type of meal from the same 

vendor. 

Meal Type: HDM 

 

$4.29 

$4.44 

$4.49 

$4.79 $4.79 

Carroll Frederick Harford Queen Anne's Upper Shore 

Aging 

AAA 

$4.68 

$4.89 $4.89 

Frederick Queen Anne's Upper Shore Aging 

COST 

P

ER 

M

E

AL 

AAA 

Vendor: Business Food Solutions 

Meal Type: Congregate 

Vendor: Business Food Solutions 
Discrepancies in vendor costs 

COST 

P

ER 

M

E

AL 

CATERER CATERER 

Meal Type: Lunch 

In some cases, counties will pay different prices for the same type of meal depending on which 

vendor it comes from. 

 

$6.50 $6.30 

$4.75 $4.50 

$5.59 

Catering by 

Yaffa 

Jong Kak MOWCM N.M. Carroll

Manor Inc.

Culinary Services 

Group 

$4.68 

$2.50 

$4.50 

Business Food 

Solutions 

Frederick Co Adult 

Detention Center 

Homewood at 

Crumland Farm 

COST 

PER 

MEAL 

AAA: Baltimore City 

Meal Type: HDM AAA: 

Frederick County 
 

 How would a single vendor for the entire state compare to a 

multi-vendors system?
 

Answers...

◦ How would a single vendor for the entire state compare to a multi-vendors 

system? 

o Pros o Cons 

o Easier to control costs o Lose the local relationship and special deals 

o Can regulate quality top-down they might have 

o Stabilize costs by county so that some o Could a single vendor reach all counties? 

counties aren’t paying more than others Including Eastern Shore? 
 Do other states have models that 

we could use?
Answers...

◦ Do other states have models that we could use? 

◦ No other states were found to have a single-vendor model (that we are aware of). 

◦ Many initiatives in other states have come from a non-government organization or a smaller group within 

a government agency rather than from the state 

◦ For example, in Maine, the Southern Maine Agency on Aging (SMAA) conducted a pilot study called Simply Delivered in 

partnership with a single hospital. SMAA put together the meal packages themselves and did not partner with a vendor. 

◦ However, significant government funding and support have made other approaches possible 

◦ For example, California initiated a 3-year pilot program for the state’s Medi-Cal recipients. Funding initially came from the state 

budget, but this formed the California Food is Medicine Coalition (CalFIMC). This coalition is composed of non-profit 

organizations throughout California and provides medically-tailored meals to the homes of Medi-Cal recipients. Although this is a 

statewide initiative, each coalition member organization provides their own foods from their own vendors. 

◦ Cost per meal for CalFIMC were different depending on the organization, for example Mama’s Kitchen provided meals for about

$2.92 per meal