If it's the former, then I think it's still "free food".
If it's the latter, then it removes much of the benefit of the company providing the meal -- keeping employees on-campus and near their desks longer. I like my company's free food since it's easy to walk down the hall and eat a quick lunch between meetings, no need to take an hour to head off campus to a local restaurant. I don't care that the food is "free", but that it's fast and convenient.