On free meals at work

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.

- REY ELBO

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.