There is a donut place in Berkeley that works very similar to that. The reason for them is that there are a lot of large-scale orders that want the donuts for breakfast (e.g. the school dining facilities).
150 tiny orders is like cutting down a forest with a herring. Catering events is where the real cash is at. Large universities like Stanford operate like cities with 100s of autonomous departments free to choose whichever vendor/s they like.
