“The times, they are a changin’,” and these 

changing times significantly affect how senior 

nutrition programs function in their need to meet the 

demands of the population they serve. Programs 

need to change to meet both current and future 

needs. As communities change, so do the programs, 

services and systems change.

The older American population is increasingly 

diverse. As it grows in numbers, it also grows in 

racial, ethnic, economic, health, functionality, and 

housing diversity. Most older adults are relatively 

healthy, live at home in their communities, and 

rely on informal caregiver support when they need 

assistance. However, the fastest growing segment of 

the population are those who are over 85 years old 

and may need more community support.

Societal expectations, science, technology, media, 

healthcare, social services, home and communitybased care, and long-term services and supports 

are also changing. An increasingly competitive 

environment for public and private funding means 

that programs need to provide more quality, 

patient-centered, effective, and efficient products 

and services. Their revenues must be enhanced 

through multiple funding streams and improved 

business acumen to keep up with evolving service 

needs and system changes.

Build Sustainable Resources

Whether a community-based nutrition program 

experiences a recent decline in revenue, or a 

gradual tendency occurs over a period of time 

to dip into reserve funds, action is essential 

to remain sustainable. Identifying solutions 

to increase organizational revenue without 

sacrificing program quality or service demands 

is necessary for sustainable success. Successful 

nutrition programs have a mix of program 

revenue sources from which to draw when there 

are shortfalls in total program revenues. Whether 

it is a small program or a large program, there 

may be business opportunities that match your 

programs capabilities to help build sustainability 

and revenue generation. 

Expand Existing Funding

Successful nutrition programs depend on funding 

revenues in addition to participant contributions 

and public funding, such as the Older Americans 

Act to support the need for services. These 

include private grants from foundations and 

businesses and fundraising activities such as 

special events, sponsored walks, and direct mail 

campaigns. As competition expands among 

other non-profit organizations for limited private 

funds, and the need for community support 

services have increased, nutrition programs must 

seek ways to maintain or expand their revenue 

sources. 

Organizations who have lucrative fundraising 

activities maintain or build a donor base on which 

to rely on for continued funding. This becomes 

an ongoing process in which a significant amount 

of staff and volunteer resources are required with 

a return on investment that is sometimes difficult 

to predict or budget. Private grants, as sources 

of revenue, are usually program driven and not 

unrestricted in how the funds are to be used. 

However, although private grants are supportive 

of the overall mission of the organization, they 

may not be directed toward specific program 

needs such as meals or equipment purchases. 

Nevertheless, private grants may be an 

excellent resource to provide a pilot project that 

demonstrates and leads to future organizational 

sustainability or program direction. Funders 

appreciate projects that build on sustainability 

rather than just supplementing current program 

needs.

Sustainability and Revenue Generation in an 

Evolving Senior Nutrition Business Environment

The National

Resource Center on

Nutrition & Aging

1

Extended Brief

Written by: Linda L Netterville MA, RD, LD, MA. Commissioned by the NRCNA.

OPPORTUNITIES
Engage in Innovative Business Models

For years, social entrepreneurship was promoted 

among nutrition programs as a solution to 

revenue shortfalls. The question to what exactly 

is social entrepreneurship and its effectiveness 

as the panacea to the woes of funding has yet 

to be answered. The term describes combining 

the social mission of the organization to give an 

opportunity to create or expand into something 

new. Although this creative thinking is exciting 

and stimulating to the imagination, the question 

becomes will it meet both the short and longterm funding needs of providing nutrition support 

to the clients and community the organization 

serves. For the purposes of this brief, Innovative 

Business Models will be described as an 

approach to create sustainable funding outside 

of the traditional public funding base for nutrition 

programs. A set of common strategies that can 

be explored and implemented, all or in part 

by most nutrition programs with the end goal 

of generating additional program revenue, is 

provided. Since community-based nutrition 

programs are unique within their own local 

community, the framework and business models 

are intended to stimulate creative thinking 

and problem solving. Contributing factors to 

the autonomy of community-based nutrition 

programs include organizational size and 

structure, community support, population size 

and diversity served.

Business opportunities may present themselves 

that may or may not be within the current 

service delivery scope of the nutrition program 

organization. These opportunities may include 

Enhanced Nutrition Services, which supplement 

or contribute to positive health outcomes of the 

clients or population served such as for-pay meal 

options, food delivery programs, meal kits or 

other nutrition and meal services. They may be 

considered Program Additions which result in 

additional revenue, increased public recognition 

or partnerships, but are still within the overall 

mission of the organization. These would include 

business ventures such as catering, contracted 

services, thrift shops, or event space rentals.

Explore Healthcare Market Models

In recent years, after the passage of the Patient 

Protection and Affordable Care Act of 2010 

(ACA), sweeping changes have been made to the 

healthcare delivery system across the country.

Based on necessary mandates, understanding 

the true impact of the changes imposed by ACA 

requires understanding how the current system 

evolved and the difference between where our 

system was and where it is going. Opportunities 

for partnerships and contracts with communitybased organizations and healthcare entities have 

developed. Not only are these opportunities 

within the mission of the nutrition program 

organization to provide nutritional support, 

but it gives a chance to become a healthcare 

partner that can create significant impact on the 

social determinants of health for older adults. 

With their service and delivery structure in 

place, as a trusted community entity, nutrition 

programs have proven to be a valuable partner 

in this expanding healthcare market. More and 

more nutrition programs are finding their way 

through this maze of healthcare opportunities, 

strengthening or developing community partners, 

and reaping financial and economies of scale 

benefits. For more information on models for 

connecting with healthcare markets, visit 

https://aginganddisabilitybusinessinstitute.org, 

for a business planning toolkit for healthcare, 

visit https://ncoa.org/wp-content/uploads/MABusiness-Plan-Toolkit.pdf.

Common Strategies for Implementing 

Successful Business Models

There are common strategies essential for 

evaluating potential business opportunities and 

developing a successful program which will 

generate revenue for the organization. These are 

informed by examples of outstanding business 

models implemented by select community 

nutrition programs, understanding that each 

is unique within its community. The guidelines 

provide a framework for exploration and 

implementation. 

1. Start with a Strategic Business Plan

The first step in deciding the right path is to 

develop an organizational strategic business 

plan for the future. This takes a guiding team 

that includes individuals with leadership, vision, 

2
communication, and implementation skills. 

They must first acknowledge that there is an 

urgency to move forward, recognize potential 

opportunities, and create the organizational 

culture for change. The team can include 

management and staff, board members, 

current and potential partners, and community 

stakeholders that can assist in ensuring an 

organization has a competitive, revenuegenerating business model.

2. Identify Your Nutrition Program’s Assets

Look within your nutrition program’s organization 

and assess the attributes and shortfalls within the 

organization that will lead to a viable business 

model. Taking the time to fully inventory the 

nutrition program’s assets may provide some 

possible business ventures that were not 

previously considered.

✓ Identify the cultural readiness and flexibility to 

change from the staff, board, and volunteers. 

Consider how receptive the organization is to 

a competitive business model. Most nutrition 

programs have been in existence over thirty 

years, and some have developed a “noprofit” mentality and have become set in their 

business practices. A complete paradigm 

shift of the organization may be necessary to 

go forward with a mindset of organizational 

renewal.

✓ One of the most valuable resources of a 

nutrition program is the program staff and 

volunteers, who provide input using their 

level of expertise, knowledge and skills. To 

better evaluate your programs assets, these 

key questions must be addressed: Is there 

enough staff to take on the planning and 

development of new products or services? 

Does staffing include health professionals 

such as Registered Dietitians, Licensed 

Social Workers, and other professionals? 

Is the program’s strength in food service 

management and delivery? Are the volunteers 

willing to take on new projects or tasks?

✓ Operational resources provide the base of a 

nutrition program’s assets. It may be helpful to 

inventory all your programs assets, regardless 

of how they are currently being used:

• A kitchen that is operated by the nutrition 

program, or is available to advance other 

business ventures, is one of the best 

resources to providing additional business 

opportunities. Is the kitchen currently at 

maximum capacity during hours of program 

operations? Are there off hours that can 

be used for other food service purposes 

such as catering or USDA funded nutrition 

programs such as Child and Adult Care 

Food Program or Summer Food Service 

Programs?

• Food service preparation or delivery 

equipment that would support other 

business opportunities should be 

considered when developing a business 

plan. Is your kitchen equipment sufficient 

for additional demand if needed, or is 

it at capacity? Does your kitchen have 

equipment available to do different types 

of production or service, for example 

blast freezing capability? Do you have a 

fleet of vans that can be used for other 

tasks beside food delivery? Do you have 

handicapped equipped passenger vans 

that can be used off-service hours for 

transportation programs? 

• The building that houses the nutrition 

program’s administrative offices or dining 

sites may provide an untapped source of 

revenue. Are there meeting spaces that can 

be made available to outside groups for a 

fee? Are there unused office space that can 

be repurposed?

✓ The amount of financial reserves an 

organization has is important to developing 

or expanding programs. It should always be 

assumed that any new program may require 

some initial startup expense for a period 

before any income is generated.

✓ Vital to the continuing success of a nutrition 

program, is the community support and 

the image they have within the community. 

Is there trust and support of the program 

in the community? Is the nutrition program 

recognized as a healthcare partner leading 

to positive health outcomes? Is the nutrition 

program part of a larger community antihunger initiative?

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3. Identify Service Packages or Products

The service package or products to be expanded 

upon or added to is probably the most difficult to 

identify and implement for an organization. First, 

understand the market demands within your 

community, the voids for service or products, and 

the consumer wants and needs. If competing 

within a given market, differentiate your product 

or service to make it stand out as a remarkable 

and higher quality product that may even be 

lower in cost. Second, overlay the capabilities 

and infrastructure of the organization to provide 

the identified service package or product to be 

developed. Lastly, and most importantly, will it be 

worth the financial and staffing efforts to plan and 

implement? Can the actual cost of the product 

be calculated and compared to the price that can 

be charged and received? Nutrition programs do 

not have the available budget for formal research 

and development of a new service or product 

and sometimes must rely on successful practice 

models already implemented within the aging 

network. Can the organization build a successful 

business model and customize it to fit the 

abilities of the program?

4. Develop Marketing and Sales Strategies

Nutrition programs have had the luxury of the 

public knowing and understanding their main 

product and service. After all, senior nutrition 

programs, and specifically the Meals on Wheels 

brand had high name recognition, and almost 

universally favorable ratings among consumers. 

However, it may become necessary to develop 

marketing and sales strategies that will support 

the proposed service package or products. A 

new product or service, especially if it is outside 

the traditional scope of work or customer base, 

will take effort to market and sell. Learn the best 

approaches to reach the customer base, whether 

it is through the Internet and social media, word 

of mouth, or paid advertising, and evaluate what 

works best.

5. Sharpen Your Communication and 

Negotiation Skills

Nutrition programs are skilled at developing 

service plans and proposals to provide nutritious 

meals, and knowing the population and 

diversity of the population served. Venturing 

into other markets may require additional 

communication and negotiation skills. This 

may include developing a value proposition 

marketing strategy with a well-articulated Return 

on Investment (ROI) that can be presented to 

potential business customers.

6. Know Your Program’s Capacity to Deliver

It is important to consider your program’s 

capacity to deliver any new or expanded product 

or service. Is there staffing to accommodate 

the development, delivery and management 

of the product or service? Is the facility and 

equipment sufficient to produce and deliver 

a quality product for a price that supports the 

venture and becomes revenue positive? Does 

the infrastructure of the organization include 

the information technology support for billing, 

reporting and monitoring? Are the principles of 

risk management, which identify, accept and 

manage possible risk, applied? Over-promising 

and under-delivering may preclude the success 

of a current or future business venture.

7. Implement a Continuous Quality 

Improvement Program

Every nutrition program should have in place 

a continuous quality improvement program

whether they are providing services within their 

mission, or program expansions or additions. 

This includes setting standards, defining and 

measuring outcomes, monitoring for compliance, 

and acting to correct or modify these strategies 

as needed. The customer will always require a 

quality product to be delivered.

Innovative Business Models for 

Nutrition Programs

Examples of innovative business models that 

have been implemented by senior nutrition 

programs of varying sizes (small, large, and multiservice organizations) are provided. Each model 

demonstrates effective use of the organization’s 

assets and capacity, to provide a product/

service that has a consumer market within their 

community. These models are meant to inspire 

ideas and innovation that may lead to revenue 

generation for a nutrition program.

4
Meals on Wheels of Cheyenne, Wyoming

A Thrift Store (The Mart) provides the Meals 

on Wheels of Cheyenne with gross sales up 

to $420,000 annually and a 37% net profit.

Started as an annual garage sale fundraiser, 

The Mart now provides additional funds to 

serve 100 clients per year plus other program 

needs. With two full time staff and nearly 20,000 

volunteer hours, The Mart uses retail sales and 

merchandising principles to become a successful 

business within their community of 50,000 

residents.

http://mealsonwheelsofcheyenne.com/mart-thrift-store/ 

SeniorServ, Anaheim, California

A Commercial Foods operation has provided 

revenues in excess of 2 million dollars annually 

for the Southern California program. Using 

their 22,000 square-foot commercial kitchen, a 

business-driven strategy supports the SeniorServ 

social mission and creates a diversity of revenue 

sources for the program. The Cook-Chill food 

service equipment produces bulk food products 

such as salsas, sauces and beverage drinks that 

are distributed via a food broker to a grocery 

chain and restaurants throughout the area.

http://seniorserv.org/about/commercial-food-services/

Meals on Wheels People, Portland, Oregon

The Diner Vancouver brings together the Title 

III C Congregate Nutrition senior diners and 

the multi-generational community to eat and 

socialize together in a Neighborhood Restaurant. 

Open from 7 am to 2 pm, The Diner Vancouver 

offers food reminiscent of classic diner fare 

of the 1950’s but with a hipster twist. With a 

special menu for the “Meals on Wheels People 

Diner Club”, senior diners can choose from 

several menu items and still meet the Title III C 

nutrition guidelines. Opened in February 2019, 

revenue from paying customers offset the cost 

of seniors’ donations toward the cost of the 

meal. For even more positive revenue, The Diner 

Vancouver does not accept tips but encourages 

a contribution toward Meals on Wheels People 

as customers pay their bill.

http://thediner.org

LifeCare Alliance, Columbus, Ohio

L.A. Catering, a division of LifeCare Alliance, 

provides full Catering Services at their in-house 

event center, as well as throughout central Ohio.  

They cater business lunches, parties, reunions, 

weddings and other events. All profits from L.A. 

Catering are reinvested into LifeCare Alliance 

to support services for older adults, medically 

challenged and disabled individuals in central 

Ohio. 

https://la-catering.com

Meals on Wheels South Florida, Plantation, 

Florida

Through Summer BreakSpot provided by 

Meals on Wheels South Florida, free, healthy 

breakfasts, lunches and snacks are available 

to anyone 18 and under through 74 locations 

throughout the county. Funded through the 

USDA Federal Summer Food Service Program 

(SFSP), the intent of the SFSP is to bridge the 

gap in nutrition during the summer months by 

serving nutritious meals to children while school 

is not in session. The program not only expands 

nutrition services provided but also fosters 

critical partnerships with other local anti-hunger 

organizations. With a high percentage of seniors 

caring for grandchildren or living in multigenerational households, this program supports 

anti-hunger within the community.

https://bmow.org/summer-break-spot-program/

5

REFERENCES

Aging and Disability Business Institute. https://aginganddisabilitybusinessinstitute.org.

Child and Adult Care Food Program (CACFP). https://fns.usda.gov/cacfp/child-and-adult-care-food-program

United State Summer Food Service Program. https://fns.usda.gov/sfsp/summer-food-service-program.

Martin R, Osberg S. (Spring 2007). Social Entrepreneurship: The Case for Definition. Stanford Social Innovation Review. 

https://ssir.org/articles/entry/social_entrepreneurship_the_case_for_definition.