Food Service Contractors NAICS 722310

May 20, 2026 - Universal School Meals Program Act of 2026

• A pair of democrat federal lawmakers have introduced the Universal School Meals Program Act of 2026, which would provide free breakfast, lunch, dinner and snacks to all students regardless of income, while eliminating school meal debt and increasing reimbursement support for schools, Food Service Director reports. The proposal, a redo of legislation introduced in 2023, would significantly expand participation in K-12 meal programs, creating higher meal volume opportunities for food service contractors serving school districts. Contractors could also benefit from more stable funding streams, reduced administrative burdens tied to income verification, and incentives for local food sourcing. However, operators would likely face increased demand for labor, production capacity, and supply chain coordination if the legislation were to advance nationally. The bill reflects growing momentum behind universal school meals and, if enacted, could reshape long-term school foodservice operations and procurement strategies.
• New workplace eating data from ezCater shows companies and employees are increasingly divided over how lunch should be handled in hybrid work environments, creating challenges for foodservice operations. While office attendance is rising, cafeteria usage isn’t keeping pace, and more than half of organizations have already reduced café operating hours. For food service contractors, this signals declining demand for traditional on-site dining programs. More than a third (36%) of decision-makers say companies may decommission cafeterias in favor of more flexible options like food-ordering platforms. Cost pressures are also pushing companies to rethink long-term commitments to full-service cafeterias. At the same time, employers view food as a tool to encourage return-to-office behavior, creating demand for more adaptable solutions rather than permanent facilities. The shift toward flexible, on-demand meal programs presents both a risk to traditional contracts and an opportunity for contractors to innovate.

• The USDA has awarded $26.8 million through the Local Agriculture Market Program (LAMP) to expand local and regional food systems, the department reported in March. The funding supports farmers markets, local food businesses, and regional partnerships that improve processing, distribution, and access to locally sourced foods. For food service contractors, the biggest impact comes from the Regional Food System Partnerships (RFSP), which specifically aim to increase the use of local foods in institutional settings like schools, hospitals, and government facilities, creating opportunities for food service providers to integrate locally sourced ingredients into menus and strengthen relationships with regional suppliers. Moreover, investments in aggregation, storage, and value-added production through the Local Food Promotion Program (LFPP) can make local sourcing more reliable and scalable. Overall, the funding supports a shift toward local supply chains, requiring contractors to adapt procurement strategies while offering opportunities to differentiate through fresh, locally sourced menu options.
• Employment by food service contractors shrank 8.7% in March compared to a year ago, while the average industry wage rose 9.7% over the same period to a new high of $22.46 per hour, according to the latest US Bureau of Labor Statistics data. Wage growth at food service contractors has increased 17.2% over the past three years, outpacing overall private wage growth of 11.7%. Sales for the US food service contractors industry are forecast to grow at a 5% compounded annual rate from 2026 to 2030, faster than the growth of the overall economy, according to the latest Interindustry Economic Research Fund forecast.