Let me expand my explanation: Lufthansa could have signed a contract saying: Please offer Bollinger champagne and Evian water and we pay x EUR per unit consumed.

What Lufthansa did was following the usual lounge convention and they pay by passenger and asking for a “First Class offering”.

That’s obviously ambiguous and Käfer seems to have maximized its margin by investing much less into quality than Lufthansa had assumed and kept more money for themselves.

One should think that Käfer should be concerned about their reputation as well but that’s obviously not the case. They know that Lufthansa’s reputation is even more at stake and so everything seems to be tough negotiations about what constitutes a “First Class offering”.