The university can save some money because it use less soap and bleach, but I hope they are still paying the cleaning crew.

Example: At the college I went to, the food service company that handled the cafeteria had some interesting clauses in their contract that gave them a lot of control over who else could cook food for an 'on campus/university sanctioned' event. It's been a long time so I can't remember the specifics, but I think we had to switch some fraternity events from cooking hotdogs/hamburgers outside to just bringing some Carry Out pizza.

On top of that, the workers for that company weren't paid well, the food was typically about what you'd expect from, say, bulk purchases from Gordon Food Service, and very expensive for students.

Speaking of that, IIRC if you lived on campus you had to have some form of meal plan (I assume that was also in the contract.)