Earlier quoted context omitted.
I really like the "we'll provide free food onsite, and if you go out to lunch with anyone, we'll pay for that too (but keep it reasonable)" -- encouraging employees go to out to lunch together, or to have lunch with people from other companies, or potential customers, or hires, or whatever, seems worth the cost of lunch. You may or may not be able to deduct the cost of the meals (depending on who they're with), and o…
What a hassle. Just pay more.
Not offering free food will hurt in recruiting a lot more than the cost, even if you moved $1 in food costs directly into salary.
I mean, if even Yahoo! eventually figures it out, it is probably true.