Development of food service institution has been initiated by industrialization and has grown rapidly over the last half century. Institutional Food Service includes planning, preparation, distribution and supply of foods outside home. Consumer perceptions towards institutional foods are influenced by marketing, advertising and lifestyle changes. Food service systems/catering units promote new processing methods and bulk packaging of food to conquer problems like skilled labour shortage and reduce the operation cost. This review emphasize on the evolution of food services (vending, industrial food services, school lunch, hospital etc.) and its importance. It also highlights the attributes for making institutional foods more acceptable for consumers and their role of human engineering.