I’ve seen other replies talking about the costs of running the company.
My wife was saying that the crux of the problem is how Free School Meal vouchers are/were issued, with there being a large delay until guidance was released.
They had to produce care packs because the guidance from the government wasn't released until last week; from this, their caterers were asked to do it.
Last time, it mostly some scheme called 'Eden Red' that was pretty unusable and would take staff working through the night to access the system.
Even then, vouchers weren't always issued properly to the point she moved them to a different, more efficient system but this came with a cost to the school.
While I don't agree with the catering company in what they've produced, the cost of running the company (wages, distribution etc.) will be a factor in it.*
If the government had released guidance and had reliable system in place from the outset, it wouldn't have been an issue as much as it is.
*They'll still be looking at making a profit too, sadly.