The paper has focused on prospects of outsourcing food service with duernregard to students satisfaction level with current food service; perceivedrnsatisfaction level if food service is outsourced; political and legal issuesrnrelated to outsourcing food service; human resource related issues;rnwillingness of potential subcontractors to accept the offer; correlation ofrncurrent satisfaction level with perceived .§satisfaction level if the service isrnoutsourced and the opinion of students related to cost at which thernsubcontractors may offer food service relative to budget limit per studentrnper month.rnAccording to the finding of the study, the current inflationary situationrnbecomes a -major obstacle in rendering food service- as expected.rnMoreover, even if the university is willing to outsource food service,rnpotential subcontractors may not accept the offer due to the fact that thernoffer price is low (Birr 180 per student per month) relative to the currentrninflation rate. Outsourcing food service is politically and legallyrnacceptable. The university believes that the precondition for outsourcingrnis that the subcontractors should accept the existing fooel serve relatedrnemployees as their workers Jut to avoid the bad consequences of firingrnthe employees.rnThe current satisfaction level of students with food service is low and thernstudents believe that if food service is outsourced, perceived satisfactionrnlevel with food service is high . The current satisfaction level with foodrnservice IS negatively correlated with perceived satisfaction level if foodrnservice is outsourced.