My wife's employer has a very similar thing going on. They have a cafeteria staffed by a catering company, and the contract requires that they (the employer) use the catering company for all things that take place in the building. A manager can't go out and buy donuts for a meeting, instead they would have to use the caterer who is both worse quality and more expensive. This caterer even tried to get the company to chase off food trucks that were coming to the area, though thankfully that went nowhere because the food trucks were on public streets and not private property.

It is truly an awful contract, with no benefit at all to the employer that I can see. Like you, I conclude that some executive must have gotten kickbacks for signing this.

> It is truly an awful contract, with no benefit at all to the employer that I can see.

The benefit is having an operating cafeteria (i.e. an amenity) for a guaranteed period with little or zero out-of-pocket expense other than providing the space. Unless there's obviously high-demand (coffee?), no catering company is going to commit to a long-term contract without ensuring some minimum volume to maintain staffing. Anything food related typically has ridiculously slim margins on average, especially when you count all the failed projects.

Catering is often an exception, but not this kind of daily staffed in-place catering. The most profitable kind of catering is where you can prepare food offset for discrete (though hopefully recurring) events across many (hopefully repeat) clients, and where you can quickly ramp up or ramp down staffing and facilities to minimize recurring costs.