The math is off. Employers PAY the average employee $35/hour, but they get > $35/hour value out of the employee---or else they would go out of business. The employer's margin varies widely, but is often at least 2x.

However, I feel that when I had a free lunch I wasn't that much more productive. I need breaks during the day. I'm going to take them whether or not you give me a free lunch.