How to plan a food stipend for employees

Food plays a big role in how employees experience work travel. Whether they’re meeting with clients, working late at the office, or staying productive on the road, having reliable access to meals matters—and it can add up quickly. A well-defined food stipend or meal allowance helps cover those costs and shows your team that their comfort and time are valued.

If you’ve never created a food stipend policy, don’t worry—we’re here to walk you through building a policy that’s clear, fair, and easy to manage.

What’s an employee food stipend?

A food stipend is money provided by an employer to cover meals, snacks, or groceries tied to work. It might take the form of a daily meal allowance (aka a per diem), a set budget for business trips, or a recurring benefit to help with everyday lunches or healthy snacks at the office.

Some companies give remote workers a monthly lunch stipend for groceries or meal delivery. Others cover a daily meal allowance when staff travel for conferences or out-of-town meetings. Regardless of your chosen setup, the goal is to offset reasonable food expenses so your team isn’t left footing the bill for meals they wouldn’t usually need. 

Top reasons to offer a food allowance benefit

A well-planned food stipend does more than cover lunch. It helps employees feel supported and taken care of. Here are a few real-life benefits for employees and companies. 

Reducing daily financial stress

Food prices are rising, and regularly dining out during business trips or long days at the office can add up fast. A meal allowance means employees don’t have to dip into their own pockets just to stay fed while working. For example, giving a clear per diem for lunch, dinner, or even breakfast at the hotel removes some of the stress when workers are on the road.

Supporting better work-life balance

When employees know their meals are covered, they can stay focused on the job—not on finding the cheapest food or skipping meals. Many companies also offer time-saving perks like stocked office kitchens, grocery stipends, or free team lunches to support workers’ time and well-being.

Enhancing focus and productivity at work

A hungry employee isn’t a happy (or productive) employee. Offering healthy snacks, light refreshments, or even covering coffee runs helps maintain energy levels, keeps meetings productive, and shows that your organization cares about wellness.

How to set up an employee food allowance or stipend policy

A clear, fair policy keeps everyone on the same page and helps avoid confusion or disagreements. Follow these steps to create one that fits your company’s needs and budget.

Set a budget 

First, figure out how much you can reasonably offer. Many companies use the GSA per diem rates as a guide for travel. For example, if the GSA says breakfast is $14, lunch is $16, and dinner is $29 for employees living in or traveling to a specific city, you’d set a daily meal stipend of $59.

If you cover snacks or groceries as a regular perk, set a clear weekly or monthly allowance per employee. Most companies land in the $50–$200/month range, depending on whether they’re sticking to snacks or covering full meals through options like office lunches or lifestyle spending accounts.

Set eligibility criteria 

Be clear about when employees can use the stipend. Are food costs covered only for overnight trips or day trips longer than eight hours? Do remote workers get a monthly lunch budget? Whatever you decide, put it in writing so there’s no confusion.

‍Example policy: “Employees traveling more than 50 miles from home overnight receive a daily meal allowance according to current GSA rates. Remote workers receive a monthly $100 grocery stipend.”

Define how your reimbursements work

Decide how employees will pay for meals. Some companies give out business credit cards with spending limits, while others ask employees to pay upfront and get reimbursed later. 

If you choose the reimbursement route, lay out what documentation you’ll require employees to submit. Most companies ask for itemized receipts, a description of the business purpose (like a client lunch or conference dinner), and an expense report submitted within 60 days.

Communicate clearly

A good policy offers clear answers to these common questions:

• What meals or snacks are covered?
• Are restaurant tips included? 
• Will you cover alcohol or room service?
• What happens if an event provides a meal the employee can’t eat due to dietary restrictions? 
• How long will reimbursement take?
• What level of approval is needed?

Make it easy for your team to find these answers. Add a quick reference guide to your employee handbook or company intranet, and encourage employees to talk to HR if they’re unsure about which expenses qualify. Your internal communications team can help share the policy and update employees on any changes affecting daily operations.

When should you offer food stipends?

A food stipend can be helpful in more situations than you might think. Here are some examples of when to offer one and what you might cover.

Breakfast, lunch, and dinner

For employees traveling for work, covering three meals a day is standard. Many companies adjust for travel days—for instance, offering 75% of the daily per diem on departure and return days, since employees might eat at home for part of the day.

Snacks and light refreshments

Healthy snacks like fresh fruit, veggies, and protein bars at the office, coffee runs during long meetings, or small grocery stipends for remote workers can boost morale and productivity. Just be sure to clearly state whether these are one-off perks or part of a regular allowance.

Restaurant tips

Most employers include reasonable restaurant tips in the total food budget. If there’s a cap, make sure it’s clearly communicated so employees don’t get caught off guard when the check arrives.

All meals during business travel 

If you send employees to a trade show, conference, or out-of-town client meeting, plan to cover any meals not included in the event fees. For example, if a conference provides lunch but not breakfast or dinner, adjust the daily meal allowance accordingly. But be sure to leave some wiggle room for dietary restrictions—if an employee can’t eat the provided meal, they shouldn’t be penalized for purchasing food elsewhere. 

If your policy also covers client meals or team dinners, consider outlining separate guidelines for those higher-cost expenses to keep expectations clear.

Are food allowances considered taxable income?

A big question many employers ask is whether food stipends are taxable.

In many cases, the answer is no—as long as your meal allowance follows IRS rules for a “qualified per diem” and doesn’t exceed federal limits. If the stipend stays within the standard per diem rates, it doesn’t count as taxable income for the employee. 

There’s one caveat: To stay tax-free, employees must submit an expense report within 60 days that includes receipts and information about the purpose of the trip. If they don’t, the stipend might show up on their W-2. 

Pro tip: Always check the latest IRS guidelines or talk to a tax pro if you’re unsure. 

Keep track of travel expenses with Engine 

Managing food and housing stipends, vehicle allowances, and travel expenses doesn’t have to be complicated. Engine’s booking and expense tracking options make it easy to stay organized and stress-free.

Ready to make business travel smoother? Join Engine today to take the guesswork out of business travel—for both yourself and your team.