Pizza Hut, Domino’s, and the Public Schools

By Andrew Stark

 

Reprinted from Policy Review

2000 or 2001??

 

Los angeles-based Tooned-In Menu Team, Inc., prints 4 million menus each month for school cafeterias around the country, each one laden with ads for products such as Pillsbury cookies or Pokemon. The deal is this: In exchange for getting their menus done up for free, participating schools provide Tooned-In with a ready market for its advertisers. It’s just one of a proliferating number of arrangements forged each year between schools (or school boards) and companies. Consider McDonald’s All-American Reading Challenge, in which McDonald’s gives hamburger coupons to elementary-school students in exchange for their reading a certain number of books. Or Piggly Wiggly’s offer to donate money to a school in return for sales receipts — indicating proof of purchase at the store — from the school community. Or the American Egg Board’s “Incredible Journey from Hen to Home” curricular material, which is provided to schools for free while also promoting egg consumption. Or ZapMe!, which furnishes schools with free computer labs in return for the opportunity to run kid-oriented banner ads on the installed browsers and collect aggregate demographic information on students’ web-surfing habits.

 

In each case, the school gets something — money, equipment, incentives for kids to learn, curricular material — at a time of shrinking public-education budgets. And the companies also get something: access to a lucrative market. American teenagers spend $57 billion of their own money annually while influencing family expenditures of $200 billion more. As important, these commercial deals enable companies to build brand loyalty in a new generation of consumers. That is why the term “commercialism in the schools,” with its controversial connotations, never gets applied to the sorts of universally praised deals — such as company-sponsored scholarship, internship, or training programs — in which companies treat students not as future consumers but as future employees.

 

And indeed commercialism in the schools is controversial; it attracts fierce criticism. National organizations such as the Yonkers-based Consumers Union or Oakland’s Center for Commercial Free Public Education — as well as numerous ad hoc parental movements at the local level — have taken up arms against commercial deals, battling companies in school board hearings and courtrooms. Their concerns: that commercial deals cede control of the education agenda to nonteachers, that they prey upon a captive audience, that they distort kids’ and families’ consumer choices, that they foster materialistic values, and that kids should not be bombarded by biased, commercially motivated messages in a place where they expect the information disseminated to be objective and confined to pedagogical purposes. The debate has become shrill and polarized. “I was speaking to one of my critics not long ago,” says Tooned-In’s director of school relations, Frank Kohler. “She doesn’t own a car because she’s opposed to the use of fossil fuels. She doesn’t go to the movies because she resents the commercials. I said to her, ‘Lady, you don’t represent America!’”

 

Yet there is a big problem with both commercialism’s critics and its defenders. Neither side adequately distinguishes — among the many kinds of deals out there — between those that are genuinely troubling and those that are not; both paint with a broad brush. In the eyes of Ernest Fleishman, senior vice president for education at Scholastic, Inc., a New York-based company that sells books and posters through the schools, many of his antagonists “tend to use shotguns” in their attacks. “They draw no distinctions,” Fleishman complains, between the “very, very different kinds of deals schools strike with companies.” But what kind of discriminations should commercialism’s critics be making? As Fleishman himself notes, “very few school districts have guidelines covering these matters.” And certainly, defenders of commercialism in the public schools are themselves not always prone to drawing boundaries and ceding some ground to the opposition. Paul Folkemer, spokesman for the controversial “Channel One” — which beams a 12-minute newscast including two minutes of paid advertising into 12,000 schools daily — justifies his company’s business this way: “Commercialism has always existed in the schools; think of the local drugstore that used to advertise in the high school yearbook.” But is there no pertinent way of distinguishing Channel One from the high school yearbook?

 

If we were going to draw lines between the various kinds of commercialism so understood, the best way to begin would be to distinguish two basic types of commercial deal, types well exemplified by the contrary arrangements Pizza Hut and Domino’s have struck with American schools. On the one hand, Pizza Hut will reward children who read a certain number of books in a particular period of time with free pizza. On the other, Domino’s will reward kids who buy pizza — or more exactly their school, which sends the receipts in to the local franchise — with free books. The dynamics of these two programs precisely reverse one another. In the Pizza Hut deal, students perform an act that is supposedly part of their role in the public schools: They read. In return, what the company offers is a private-market commodity: pizza. With the Domino’s arrangement, kids slip outside of their public-school roles and perform a private-market act by buying pizza. In return, the company furnishes schools with the wherewithal to buy public goods — goods which are of value to the teaching role of the public schools, such as books.

 

As it turns out, the Pizza Hut and Domino’s programs aptly symbolize the two basic kinds of arrangements companies invariably make with schools; almost every instance of commercialism falls into one or the other category. Either, as in the Pizza Hut deal, the school offers a public good — students’ reading time, or classroom space, or curricular access — and the company reciprocates with whatever private-market commodity it happens to sell, whether pizza, coupons for orange juice, or samples of spaghetti sauce, sometimes dressed up as curricular material. Or, as with the Domino’s deal, the school offers the company something of private-market value — namely, its own students as consumers — and what the company offers the school is materiel or monies of public value: books, equipment, computers, or outright cash gifts that have no connection with whatever it is the company sells. The first kind of deal can be troubling, but not for the reason most critics believe. The second, however, is simply far less disturbing than critics allow.

 

From public good to private benefit

 

egin by considering a few examples of the first kind of deal, the Pizza Hut-type. Minute Maid, for instance, has staged its own version of the Pizza Hut arrangement: Students would read — that is, they would do something that is part of their role in the public schools— and what they would get in return were book covers advertising Minute Maid’s private-market commodity, orange juice, or rebates on purchases. A few years ago, in a similar vein, schools across the country struck an agreement with General Mills, according to which they would devote classroom time — a public good — to a science experiment in which students would pop free samples of Fruit Gushers (the company’s new private-market commodity) into their mouths, making comparisons between the resulting sensation and the dynamics of volcanic eruptions. A prominent Campbell’s Soup deal — which offered schools a science experiment purporting to show that its Prego spaghetti sauce is thicker than Unilever’s Ragu — fell into the same category. As did a sixth-grade math textbook, published by McGraw Hill and introduced into public curricula around the country, which featured a passel of references to brand-name private-market commodities such as Nike and Gatorade.

 

In all of these cases, the school offered something in its public capacity — its own classroom time and space — and the company reciprocated with whatever it happened to sell on the private market — orange juice, spaghetti sauce — wrapped in some form of curricular material. The typical deal struck by Channel One, the 800-pound bęte noire of commercialism critics, falls into the same category. What the school turns over to Channel One is the public good of classroom time: The typical Channel One deal calls for 90 percent of a school’s students to watch the show, beamed daily by satellite, on 90 percent of schooldays. In return, what Channel One furnishes is its own private-market commodity — namely, two minutes daily of advertising for other private commodities such as Reebok or Nintendo — wrapped in current-events curricular material, the ten minutes daily of news coverage its programs provide.

 

It’s true that Channel One also gives each subscribing school approximately $17,000 worth of wholly public goods, in the form of free tv and satellite dish equipment. Yet both Channel One and its critics deny that these public goods are of much value to schools. Noting that “a couple of hundred schools haven’t even asked for [the equipment],” Channel One’s Folkemer says that “if the deal was just to get the equipment, schools wouldn’t continue it. Equipment is not that significant.” Channel One’s opponents, such as Alex Molnar of the University of Wisconsin at Milwaukee, agree, denying that the equipment Channel One offers is “valuable to the school[s even] in the most crass commercial terms.” Of course, the two sides have different motives for dismissing the utility of Channel One’s gifts of videos and satellite equipment. Channel One does so to allay any charge that schools are taking its programs because of the free equipment rather than the educational merits of the programming; critics, for their part, want to argue that Channel One is exploiting schools, getting valuable advertising access to children’s minds in exchange for virtually nothing. But the bottom line is this: If indeed the public good of free equipment means so little, as both Channel One and its critics seem to agree, then the Channel One deal remains essentially identical to the Pizza Hut, Minute Maid, and Fruit Gusher arrangements. What the school turns over is public curricular space and classroom time, and what the company provides in return is essentially a private-market commodity — in this case, advertising — fashioned in a curricular package that inserts itself into the public time and space made available.

 

What’s so wrong with these kinds of deals? Critics have a full quiver, but the most prominent salvo misses. On it, the problem with Channel One — or Minute Maid’s book covers or Campbell’s curricular material — is that, installed as they are inside the classroom, their promotional efforts prey upon a captive audience. If the company’s pitch were removed even to the cafeteria, as with Kohler’s menus, that would be a different story: Students don’t have to eat lunch there. Better still that the ads should move onto the school roof: There is little to say against the two suburban Dallas school rooftops that feature Dr. Pepper ads for overflying planes. But as the public space which the school makes available to a private commodity’s promotional material moves from the outer perimeters of the building to the inner sanctum of the classroom, the audience grows more captive; the private-market advertisements, consequently, more allegedly harmful. In a 1995 memo concerning Channel One, the New York State Department of Education put it this way: “It’s [sic] mission is to . . . deliver up a large, captive . . . audience to advertisers.” And this, presumably, is a bad thing.

 

But is it? Captivity is double-edged. If a captive audience means that Channel One’s ads might carry more suasive clout than otherwise — because students can’t avoid them — it also means that the content of the surrounding news material might be of greater quality than otherwise. It is harder to accuse Channel One, as some accuse pbs, of feeling under pressure to water down the quality of its programming to attract the audiences that corporate sponsors desire, precisely because Channel One’s viewers can’t go anywhere.

 

Accordingly, some critics of Channel One backpedal. Far from berating Channel One for exploiting a captive audience, they instead adopt an assault based on denying that its audience is all that captive. Students, they say, actually have a tendency to mentally wander, do homework, gossip, or simply space out during the Channel One broadcast; and this, they worry, means that Channel One faces an enormous incentive to dilute its news content, rendering it ever more glitzy and gimmicky, in order to attract student attention. Channel One’s news broadcasts, the media critic Mark Crispin Miller has written, rely on “brilliant, zippy graphics,” a “young and pretty .. . . team of anchors,” and content that is “compressed and superficial” in order to compel the attention of students — precisely because they tend to “zone out,” as Miller puts it, during broadcasts. “The content of Channel One News,” says William Hoynes, a Vassar sociologist who has studied the company’s programming, “suggests the difficulties of holding the attention of even captive audiences;” it’s clear, Hoynes writes, “that Channel One has consequently tailored a [news] product that is, first and foremost, about inducing students to pay attention, with a relentlessly hip style and . . . gimmicks.”

 

If, however, students’ attention can and does wander, is it not misconceived to describe them as constituting a “captive” audience? Either the audience is captive, in which case the ads are potent but the news programming encounters less of a need to be diluted — or else students’ minds are free to roam, in which case programmers might be tempted to water down the news content but the ads likely have less impact. It’s true that one study has shown that students tend to remember more about Channel One’s ads than about the news content; but since they are equally captive (or noncaptive) in either case, captivity per se — notwithstanding its mantra-like appearance in criticisms of Channel One — isn’t the issue. The captivity critique is not quite ready for prime time.

 

There is, however, a qualified critique of the Channel One deal — and, by extension, the McGraw Hill or Minute Maid arrangements — that has some merit. In a much cited 1993 study, Michael Morgan, a professor of communications at the University of Massachusetts at Amherst, reported that “Channel One is most often found in schools . . . that have the least amount of money to spend on conventional educational resources.” Among poorer schools — where total spending per student is $2,599 per year or less — about six in 10 take Channel One. But among wealthier schools — those that spend at least $6,000 — only about one in 10 subscribe. Morgan’s conclusion: For those schools that cannot even afford books and maps, the free 10 minutes of news content itself — forget the tv sets and the satellite dishes — may, by filling a curricular void, prove sufficient to overcome any reservations teachers harbor about Channel One’s content. As the Center for Commercial-Free Public Education puts it, in “schools where text books are old or there is no money for supplemental materials,” Channel One — or Campbell’s Soup or General Mills curricular material — “can be a popular way for teachers to brighten a subject up.” David Shenk, a fellow at the Freedom Forum Media Studies Center, agrees: “Poorly funded school districts are the most likely [to take Channel One or Campbell’s or Minute Maid curricular products] because prefabricated lesson plans save preparation time and provide relief for overburdened teachers.” A Wall Street Journal article a few years back reported on the case of Laurie Bjoriykke, a third grade teacher in Gaithersburg, Md., who “says she has no textbooks for her history and science classes” and so “shows two corporate tapes a month to supplement her resources.”

 

What all of this means, says the Consumers Union’s Charlotte Baecher, is that schools taking Channel One have put themselves into a kind of “conflict of interest.” As with all public officials, teachers should make their official decisions — including their decisions about how to allocate curricular time and classroom space — on the merits, according to the public interest, and not on the basis of their need for private support. Of course, the kind of deal represented by Channel One is not the most serious kind of conflict of interest imaginable: That’s the kind where an official has the capacity to use her public role to benefit a private company in return for a personal payment. Instead, the Channel One arrangement resembles the milder form of conflict (but one still statutorily regulated at the federal level) in which officials take something of value from a private company not for themselves personally, but to help serve the purposes of their cash-strapped public agency. The rule is that the public agenda should never be skewed by an agency’s need for private assistance, let alone the official’s personal desire for private gain. As Sen. Richard Shelby, Republican of Alabama, recently put it, “I want [school] decision makers to be able to decide for themselves rather than have to settle for a ‘deal.’”

 

The fact that Channel One makes its way preponderantly into poorer schools, however, confronts not only those schools but the company itself with a problem. Jim Metrock, a former steel industry executive who now heads an Alabama-based anti-Channel One organization called Obligation, notes that because Channel One “is going into school systems where kids may not be able to pay for the product, Channel One’s advertisers” might not be “getting the audience they paid for . . . probably the demographics are different.” Kevin Gordon of the California School Boards Association agrees: “Their hope was that they’d be in all sorts of markets,” Gordon says, “but that hasn’t happened.” William Hoynes adds that Channel One wanted to “be seen to reach the youth market, not the poor youth market.”

 

Ironically, then, while the Channel One-type deal might skew the curricular path taken by poorer schools, it also, in a way, threatens to skew the marketing path taken by the company. Just as schools risk making public decisions based not on the public-interest merits but on extraneous private inducements, companies like Channel One risk making their private-market decisions — their decisions as to where to prospect for consumers — based not on which schools are the most privately lucrative, but on the extraneous consideration as to which are most publicly needy. Channel One’s former president for programming, Andy Hill, acknowledges that if the company “went to advertisers and said ‘poorer kids watch our programs,’ that would be insane.” Yet he maintains that he “hasn’t seen a demographic breakdown” of Channel One’s audience and concedes that “all other things being equal, a wealthier school is less likely to be enticed” by the curricular material Channel One offers. Indeed, Hill says, if the “far left-wing Democrats who oppose Channel One instead devoted their energy to electing politicians who would raise funding for public schools, Channel One would be gone quickly.”

 

The typical Channel One deal, then, embarks the company on a mild perversion of its purposes, leading it to prospect for markets not where the private capacity to pay for the products it advertises is highest, but where the public needs for its curricular material are greatest. In the same way, it is likely that Channel One embarks some schools on a mild perversion of their purposes, causing them to make decisions on how to allocate public space and time not on the basis of the public interest — the pedagogical merits — but according to the blandishments offered by a private enterprise. In this sense, this first type of “commercialism” arrangement — where what the school offers is its own public space and time, and what the company supplies is its own private-market commodity or advertising for it — can rankle on both sides.

 

From private market to public benefit

 

n the second form of school commercialism, however, the school does not offer the company its students in their public role as students — or public curricular time or public classroom space — but rather centers exclusively on students and parents in their private-market role, as active purchasers of commodities. And what the company offers the school is a public good, pure and simple — such as equipment, computers, or a cash bequest — purged of any association with the company’s own private-market commodity. In the Domino’s example, students buy pizza, the school gets books. Or take another example: Parents in many states purchase products from their local Wal-Mart and return the receipts to the neighborhood school, which then sends the receipts back to Wal-Mart, which in turn rewards the school with free computer lessons for its students. Apple’s “Apples for Students Program” does much the same with Apple computers: Students and their families purchase produce from a local grocery store which then, in a deal with Apple, provides the school with free or reduced-price computers once a certain threshold of purchases has been reached. Hershey or Orville Redenbacher, likewise, will give a school cash for every candy wrapper or popcorn label its parents and children send in.

 

Brita Butler-Wall, who led an ultimately unsuccessful fight to keep advertising out of Seattle’s schools, calls such arrangements “travesties.” She and other critics indict them both because of what they mean for the students and because of what they imply about the companies. As far as the students are concerned, Consumers Union complains, deals such as Apple’s or Wal-Mart’s teach them “to choose products or stores for all the wrong reasons” — not on the basis of the private-market criteria of price and quality, which is what they should be learning to use, but rather skewed by the hope of gaining some form of public benefit for the school. As for the companies providing cash or equipment to schools in exchange, Consumers Union argues, they are not doing so for purely altruistic reasons but rather are engaging in “self-serving philanthropy,” giving because they expect to reap a return in goodwill. Companies’ gifts of public goods such as books, equipment, or the cash to buy them — which should be made purely on the public-spirited criteria of generosity and benevolence — are instead being skewed by the hope of gaining some private benefit.

 

But the critics say too much. In such arrangements, both the school and the company are no longer compromising their principal roles, having stepped outside of them. The school is no longer a public forum but a private market; the company no longer a private enterprise but a public philanthropist. As far as the school is concerned, there is thus no turning over of any kind of public space — let alone the sanctum of the classroom — to the service of private ends. Rather, the school community’s private-market decisions are being diverted to serve public ends. And this is no more troubling than, say, someone’s holding in his wallet a Sierra Club or Multiple Sclerosis Society affinity credit card, where his determination as to whether to buy a particular private-market commodity can get colored, at the margins, by his knowledge that in paying for it he’ll benefit a favored public cause.

 

As for the company — say Wal-Mart or Apple — it does not (as does Channel One) find itself directing a promotional campaign to markets where the public needs for curricular filler may be large but the private capacity to buy its products meager. Instead, in these arrangements, the company steps entirely outside of its profit-making role and enters a philanthropic one. And in distributing its public largesse, it simply does what many a company does, namely, allow itself to be guided by the need to cultivate a private market. This is no more troubling than what happens when a mogul builds a hospital wing named after his company.

 

But there is a further wrinkle here. Even with deals of this relatively benign sort — in which the school offers a private market and the company a public good — there lurks, critics say, an insidious danger. There is a tendency, they argue, for the private market in question to move from outside the school to inside. During the 1997-98 school year, South Fork High School in Florida’s Marlin County executed a deal with Pepsi on which — instead of students buying Pepsi at local stores in return for a corporate gift to the school — Pepsi got the exclusive right to sell drinks to students within the school itself, in return for which the school got $155,000 cash. A year later, the Colorado Springs school district awarded Coke a similar privilege in return for $8 million over 10 years.

 

More and more such arrangements are cropping up. And here, critics say, an added problem emerges. Unlike the Wal-Mart and Apple deals, where students and parents buy products outside of the school — and where they retain the option of shopping at Sears or buying from ibm should they prefer — when the market moves inside the school, such choices often evaporate. When Coke won its contract with Colorado Springs, 53 schools had to jettison their Pepsi machines as part of the arrangement. “Exclusivity,” says Brita Butler-Wall, “is against free enterprise; it means a lack of consumer choice.” The Consumers Union’s Charlotte Baecher agrees. “Look at the great diversity of beverages you and I had when we were kids after a school football game,” Baecher says; “today, with exclusive pouring arrangements, kids don’t have the same broad range of choice.” Echoing this concern, the Berkeley school board recently tried to make an in-school marketing deal with Pepsi more palatable by requiring the company to offer a variety of drink alternatives in its school vending machines.

 

It is, though, a little hard to take this “exclusivity” complaint seriously. Critics of commercialism in the schools are (or at least should be) coming from a perspective on which there’s too much consumerism — too much commodity choice — in the schools, not too little. A critic of commercialism in the schools who complains that a particular deal is “against free enterprise,” or that it fails to offer students a range of soft-drink alternatives, needs to do a little more work on her argument. It was, after all, the city of Berkeley that 30 years ago gave prominence to the Marxist philosopher Herbert Marcuse. Choices such as the one between Coke and Pepsi, Marcuse famously declared, are a form of “repressive tolerance,” a false dichotomy staged by capitalists to distract people from the real, more fundamental choice between “wage slavery” and socialism. Odd that Berkeley should now be passing laws designed to preserve such small-beer choices in the school, as if the presence of Coke but not Pepsi were some form of deprivation. “Anticommercialism” is the last movement that should be taking such a position.

 

It’s true that some critics zero in on Coke or Pepsi deals because the drinks are so lacking in nutritional value. “Calcium intake among active girls who have switched from milk to soft drinks,” declares Maryland anti-commercialism activist Michael Tabor, “has decreased bone density.” This attack, however, would have more credibility if the Consumers Union publication Captive Kids hadn’t also scrutinized the Dairy Council of Wisconsin’s “Delicious Decisions” curricular material for signs of “bias toward milk products.”

 

What concerns over captivity are to the first kind of deal — where what the school offers is its public space — concerns about exclusivity are to the second kind of deal, where what the school offers is a private market. Both worries are red herrings. In witness whereof, it’s worth noting that corporate practitioners of the first kind of deal — such as Channel One vice president Jeff Ballabon — defend themselves in a backhanded way by assailing the second kind of deal, the Coke or Pepsi arrangements, precisely for their exclusivity. “The deals schools make with vendors to feature only their products in the schools,” Ballabon says: “that smacks to me of commercialism.” Returning the compliment, practitioners of the second kind of deal — such as Dan DeRose, whose dd Marketing helps forge Coke and Pepsi arrangements — take aim at the first kind of deal, the Channel One arrangement, for preying on a captive audience. “Personally,” DeRose told a 1998 symposium, “we feel that [commercialism] should stay out of the classroom.”

 

Frank Kohler’s fretfulness notwithstanding, when it comes to commercialism in the schools, it is possible to draw lines. When a school gives over classroom space to a company like Minute Maid — in return for book covers advertising Minute Maid’s orange juice products — each party hazards the perversion of its principal role: its role as a public entity in the case of the school; its role as a private profit-making entity in the case of the company. The school risks suborning public space to private purposes, not public criteria. And the company risks aiming its promotions at student bodies which are the most publicly needy, not necessarily the most privately lucrative.

 

On the other hand, when a school steps out of its public role to create a private market for a grocery store’s products — and when in turn the store steps out of its private profit-making role and contributes something of public value, such as Apple computers, to the school — what happens is relatively benign. It should be difficult to find fault with students whose private market purchases are guided by their hope of winning some public goods for their school. Likewise with businesses whose public philanthropy is affected by their desire for private gain.

 

Of course, just because it is possible to draw lines between the two types of deal doesn’t mean they never get blurred. General Mills once had an arrangement whereby children would collect box tops from its cereal products — acting in their private-market roles as consumers, not their public roles as students — yet what they got in return were not public goods such as books, equipment or cash, but school visits from the Trix Bunny, who would urge them to consume more of the company’s private-market commodities.

 

It is hard not to raise one’s eyebrows at such a deal. But beyond this rare line-blurring instance, most commercialism arrangements fall into either one class or the other, resembling either the Minute Maid or the Apple deal. The problem with commercialism’s critics is that they tend to place the two on a par — finding fault equally with the Minute Maid orange juice and the Apple Computer arrangements. In so doing, they paint with too broad a brush. When it comes to commercialism in the schools, as in so many other areas of life, it’s important not to mix apples with oranges.