Kaan's Catering Supplies has waited months to find out if it will be required when Compass Group takes over the Southern District Health Board's food service next month.
Meals on wheels will be trucked frozen from Auckland, but inpatient meals would be assembled on-site still using fresh ingredients as well as pre-prepared ones.
Managing director Lindsay Kaan said he had to wait and see whether the company was required.
''I've had a meeting with Compass and we're waiting for them to come back to us.''
''It's not the best situation.
''We are trying to stay in there. We certainly don't want to lose staff.''
The meeting with Compass was in the past couple of weeks in Auckland.
Mr Kaan did not have an up-to-date contract with the health board, so there was no formal cut-off date.
It was possible Compass would keep the company on for a time, and then drop it.
''We're meant to hang on and keep supplying them and they could come and say tomorrow . . . 'that's it'.''
He did not think it likely Compass would contract Kaan's long-term, as it wanted as few suppliers across the country as possible.
''The reality is that it's a big worldwide company and their model is to have very few suppliers.''
Produce might end up being procured and brought to the South from another part of the country.
''The chances of them having just a local supplier are very slim.''
Before it was sacked, the health board voted to outsource the kitchen services, despite a groundswell of opposition and concern over meal quality, food miles, local suppliers, and jobs.
Up to 20% of workers could be out of a job when Compass restructures the service.
The Service and Food Workers' Union is in mediation this week with the company and the health board over the job losses and staff rosters.
National secretary John Ryall said the union was trying to limit job losses, and ensure rosters were reasonable.
In a statement, Compass said it could not comment on commercial negotiations with suppliers, and it was still in the planning phase for the service.
''Those [supplier] decisions are based not only on what is required for SDHB but also for other regions.
''On balance, the southern region will benefit significantly from the new national procurement model.''
Food distributor Bidvest would provide warehousing of meals and distribution in Dunedin and Invercargill.
The company has previously said it will stockpile two weeks' worth of meals on wheels and bulk pre-prepared foods to ensure security of supply in the South.
Compass takes over the service on October 5.
The health board did not respond to a request for comment lodged on Wednesday.
