I think a lot of the problems with canteen food are connected to a "don't care" attitude of those who are in charge. Some dishes are more suitable for high volumes some aren't - obviously the selection also depends on the facilities (can you cook simple stuff in the same building, do you have to keep prepared food warm for a longer time).
Quality depends very much on the people in charge. The university in my home town had canteens scattered all over the place - even among those that were comparable in size the quality of the food varied massively. The canteen at the chemical faculty that I mostly went to was a great example for the level of quality and variety you can offer at such a place.
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