Southeast Missouri State University will keep its current food service.
The university awarded a new, 10-year, $3.7 million contract to Chartwells Educational Dining Services, school officials said Tuesday.
The company has operated the food service at Southeast since June 1999. The old contract expires on May 31.
The new contract will run to May 2016, school officials said.
As part of the contract, Chartwells will provide the university with an interest-free capital investment of $43 million to maintain, improve and renovate existing dining and catering facilities. Small cafes will be constructed in Dempster Hall and at the River Campus, school officials said.
"Students will realize much more value for their dollar," said Tim Weatherly, resident district manager of Chartwells.
"The 10-year contract period allowed our company the flexibility to offer students a more affordable plan," he said.
In 2006 to 2007, the average increase to students will be 0.1 percent. Chartwells is limited to a maximum increase of 5 percent over the next two years.
"With this plan, we got a really good deal for a very low cost," said student government president Adam Hanna.
Chartwells operates dining services at several regional universities, including the University of Missouri campuses in St. Louis and Rolla, St. Louis University and Southern Illinois University-Carbondale.