Ka Pai Kai Rotorua was launched in July 2017 and delivered its first lunch orders to Te Kura Kaupapa Maori o Hurungaterangi.
When it started the charitable trust was making 150 lunches a week. Now it has nine schools on board, more than 40 volunteers, two paid staff and makes as many as 750 lunches a week.
Last month the initiative was successful with an application for a partnership agreement with Rotorua Lakes Council.
Ka Pai Kai board chairwoman Jasmin Jackson said they were thrilled.
"This putea is going to enable us to start taking steps towards becoming financially self-sustaining, which is our goal in the next three years, but also to allow us to expand into more schools.
"We mihi to our volunteers, staff, the corporate sponsors who subsidise lunches, and all the other organisations who pitch in to help us get nourishing kai to these tamariki each day."
She said the partnership agreement wasn't just about the money. The initiative will receive $30,000 a year for the next three years.
"The freedom is really great. We want to service all the schools in the area and at the moment we can't. We need to grow, find more equipment and a bigger kitchen. That's going to enable us to expand our services."
Jackson said Ka Pai Kai was a valuable service because it nourished children.
"Before Ka Pai Kai existed there was only one healthy school lunch provider. They were priced outside what a lot of schools could afford.
"With Ka Pai Kai children can get something that's going to nourish them through the day so they can learn."
Receiving a lunch from the initiative costs a maximum of $4.50. Some schools pay nothing if there is a corporate sponsor.
She said more corporate sponsors were needed and businesses could email kpkrotorua@gmail.com if interested.
Owhata School receives about 40 Ka Pai Kai lunches four times a week and principal Bob Stiles said the service was invaluable.
"It gives children better concentration. They are not sitting there with empty stomachs.
"It's really healthy and nutritious food."
He said the volunteers who delivered the lunches were also always friendly.