On one hand, it might lead to higher wages being offered if you can't sell "free food" as a perk of employment. On the other hand, this makes me feel very libertarian and enraged that a local gov is trying to limit where I can get food. Currently I work in IT, and my employer has occasionally made food available with enough regularity that I stay onsite. I don't like having to hike back to my rental car, navigate to the venue, wait to order and pick up food, and suffer in what is usually a dirty public area while eating it. I acknowledge the insulation and welcome it. Often there isn't enough time to eat, so the whole experience is stress away from the stress of customer support. Sometimes I just don't eat if it means going outside. My work has me travelling a lot and it's difficult to r/mealprepsunday from a hotel mini fridge.
There has to be a better way to attract people with access to free food to local restaurants, and it's not this. If local venues are saying they're missing out on patrons that should be available then they should adapt to offering a corporate experience? Starbucks became much more successful when they became a spot for people with Macbooks to vegetate all day in.
You could have the company give an allowance to their employees to go out and spend it on local food, and then give the company a tax break for encouraging investment in said local venues (based on how much was spent). (maybe?)