This report identifies those qualities and characteristics that are usually associated with efficiently and effectively operated school food-service programs. Data were extracted from district audit reports filed with the South Carolina State Department of Education; from the South Carolina Department of Education Office of School Food-services; Lunch and Breakfast Average Daily Participation Reports for 1996-97 and 1997-98; and from South Carolina Education Profiles, 1997 and 1998. The study found a strong positive relationship between the percentage of students qualifying for free/reduced lunch, breakfast-program participation, and capital-outlay expenditures. Revenue generated through special sales was found to improve the fiscal efficiency of food-service programs significantly, particularly if canteen sales were included in food-service revenues. Also, the percentage of revenue devoted to salaries was a significant predictor of fiscal efficiency for self-managed programs, but not for programs operated by food-service management companies where management fees are not considered salary. Self-operated programs were likely to have better student participation, have greater retained earnings, and spend more money for capital outlay than food-service-management-operated programs. District-managed programs were more likely to pay greater salaries to food-service workers and use more labor hours to produce the student meals served. (Contains 25 references.) (DFR)