My cynical view is that I think our pursuit of profit is such that politicos would rather have taxpayers partially fund the school breakfast. That way a private company can get the contract and provide shitty meals in order to extract as much profit as possible.

Capitalism comes into play by barely providing adequate service while suppressing wages so that a few can greatly profit at the expense of everyone else. In a society not attempting to implement the Ferengi society the school breakfast would employ people with decent wages and serve decent food.