NSW high school canteens losing money due to mobile phone tap and go ban

Humble NSW high school canteens are suffering a 21st century setback thanks to the state government’s mobile phone ban, and it’s leading some operators to quit the game altogether.

Teenagers have become so reliant on ApplePay and tap-and-go banking apps that because phones and smartwatches are now banned in all NSW public high schools, their canteens have lost up to 30 per cent in revenue.

School canteen tech company Flexischools said of the 650 NSW schools using its online ordering system, many have reported a drop in over-the-counter sales and some in the vicinity of 20 to 30 per cent as a direct result of the state government’s phone ban coming into effect in Term 4 this year.

CEO Rachel Debeck said while her company – and most canteen operators – support the ban, this unintended consequence of removing digital wallet payment options has taken a toll on already struggling small businesses.

“We work closely with canteen operators across the country and unfortunately, we have seen some canteens having to wind back their services due to several challenges including rising costs and fewer volunteers,” Ms Debeck said.

“In some cases, those over-the-counter sales can be the difference between keeping the canteen service open, and not.”

Some NSW public high schools use lockable pouches to keep phones out of students hands, but most simply require phones to be “off and away” in a schoolbag. Picture: Russell Millard

Canteens in regional and rural schools have been hit hardest, with the shrinking sales from an already small clientele forcing some to shutter.

On the far south coast, for former Eden Marine High School canteen manager Sharon Greer the phone ban was the final straw, closing down her business just before the end of the year.

(File image) Regional school canteens, often run by P&Cs or small mum-and-dad businesses, have struggled to adapt to the change most. Picture: AAP Image/Sue Graham

“From my own experience … and others in our area, which is rural, (while) I agree the kids need the phone ban, it had a very hard effect on my business. I don’t know why they just couldn’t bring their physical cards,” Ms Greer said.

“Another lessee at a high school, the other public one 30 kilometres from us, had the same problem … her sales were down greatly also.”

Healthy Canteens Australia managing director Graham Bernard, who operates 40 public and private high school canteens around Western Sydney and the Blue Mountains, said “well over 50 per cent” of teenagers were using their phones to pay prior to the ban.

While some have started bringing debit cards or cash instead, it’s “fairly common” for students to simply ditch the canteen’s fruit bowls and salads for fried snacks at the nearest McDonald’s, he said.

Healthy Canteens Australia, one of the state's largest private operators, has reported a fall in revenue of up to 15 per cent due to the phone ban. Picture: Supplied

Managing director Graham Bernard said kids without cards or cash are ditching the canteen for fast food instead. Picture: Supplied

“We’re finding that students are sometimes able to get their phones at lunch, by going offsite to buy food … honestly, mostly they’re just used to waiting until school’s over for the day, then going across the road for fast food,” Mr Bernard said.

“It has had a 10 or 15 per cent impact on our bottom line.”

The blanket ban on phones being used in NSW’s public high schools, including during recess and lunch breaks and on excursions or other offsite school-managed activities, came into effect in October, with the vast majority of schools now requiring student to keep devices “off and away” throughout the day.

The policy also allows schools to use lockable pouches and lockers or keep phones stored at the school reception throughout the day.

A spokeswoman for the NSW Department of Education said students can still tap and go with bank cards or use cash, or use prepaid online ordering.

“The Department is happy to work with canteen providers to increase parental, carer and student awareness of the many options available through which students can purchase food and drinks from their school canteens,” she said.

Ms Debeck said affected schools should look into linking student ID cards to the canteen’s payment system as an alternative, to encourage students to take up “ nutritious options to fuel their learning”.

“Like many parents, I know I’d prefer for my own high school aged-children to be buying a wrap and juice from the school canteen, rather than taking their mobile phone off campus to get fast food and a soft drink,” she said.