Some companies offer workers free breakfast and even buffet lunches. I don’t understand this practice. Why can’t they simply raise salaries? Could you help me make sense of this policy? — Black Lotus.
The idea of providing free meals is a recruitment and retention strategy adopted by Silicon Valley. Such strategies have also been justified as a motivational tool, ensuring loyalty and productivity.
Free food may look like corporate generosity, but it’s not. Rather, it’s a practice that can’t be easily copied by competitors. Google, for one, offers almost everything, including vegan dishes and energy-boosting smoothies.
By keeping their employees onsite, Google minimizes lunch-hour escapes that eat into working hours. A study by ezCater’s Food for Work Report 2024 found that employees receiving free meals at work can save more than 30 minutes per working day. Multiply that across thousands of workers, and you’ll understand the value of hot meals as a smart investment.
In the Philippines, such trends have trickled down to certain BPOs in Metro Manila and other industries. Companies like Transcom offer free meals to employees with perfect attendance through its “Rewards Card” system. This improves retention in an industry notorious for attrition rates as high as 40%.
Outside of the BPO industry, EEI Corp., a major construction firm, spends P580 million annually on free meals for workers.
Japanese companies based in the Philippines also offer free meals, but take a different approach. One electronics manufacturer gives the equivalent of P2,000 as a monthly meal allowance per worker, which is administratively easy to do.
One electronic components factory with more than 3,000 workers spends about P30 per meal for lunch, in addition to free coffee during breaks. A Japanese mobility company used to give free unlimited rice to more than 2,000 regular workers until the practice was discontinued due to waste.
They replaced it with a meal allowance of P175 per person for every eight hours of work. That means P3,500 allowance for a minimum of 20 working days per month.
In all these, the underlying message is simple. Well-fed workers make fewer mistakes. In industries where precision matters, a good meal is cheaper than rework or accidents.
POWER PRINCIPLES
The offerings of these Philippine-based companies may not be as glamorous as Silicon Valley sushi, but the power principle is the same — to keep their workers healthy, energized, and physically present all the time. For many people, free meals or cash allowance represent a meaningful financial cushion.
A free or subsidized lunch is money saved, which adds up over time. That’s a form of financial wellness. So, why would companies spend millions feeding their people instead of simply raising salaries? The answer lies in the following:
One, improved labor productivity. Employees who don’t waste time commuting or even walking some distance for food are more focused. In situations where every second counts, like customer service or assembly lines — time saved is money earned.
Two, cultural engagement. Meals create communal spaces. In the Philippines, where “salo-salo” (food sharing) is cultural, communal eating builds a family-like atmosphere, akin to the traditional practice of laying out a single, bountiful spread of food and eating on banana leaves.
Three, talent magnet. Free meals make a difference for job applicants. It’s an attractive perk for both fresh graduates and seasoned professionals. For millennials and Gen Z workers, who prefer enriching work experiences over cash, enjoying free meals signals the employer’s dynamism.
Four, health is wealth. Companies that control the menu can influence healthier choices, reducing sick days. A balanced diet beats unhealthy instant noodles and dried fish. And while offering free unlimited rice is attractive, a healthier option might be one free cup and a subsidized second cup.
Five, cost-effective loyalty. Free meals may actually cost less than frequent salary hikes. For example, providing lunch for P100 daily adds up to P2,200 monthly per employee. Compare that with across-the-board salary increases, which become part of fixed payroll obligations, like bonuses.
RISKS AND REALITIES
But not all is gravy. There’s a fine line between providing free meals as a genuine benefit and using it as a solution for deeper issues. Employees may appreciate the perk, but if workloads are unbearable, managers are toxic, or salaries become stagnant, no amount of free adobo and kare-kare will solve morale problems.
What matters is the intent — showing employees they are valued beyond spreadsheets.
Free meals keep people healthier, happier, and loyal. They reduce downtime, encourage collaboration, and help companies stand out in the talent market. Because sometimes, the best way to feed a company’s bottom line is to first feed its workers.
Join our Oct. 17, 2025 public workshop on “How to Detect and Investigate Employee Fraud.” For details, e-mail operations@reyelbo.consulting or register via https://reyelbo.com/contact-us
