Egypt's food rationing and subsidy system has been a mainstay of the government's long-term policy of promoting social equity and political stability. There is an increasing pressure to reform if not eliminating the subsidy program. Few studies were carried-out to evaluate the current subsidy system. The aim of this study is to assess the consumption of subsidized and unsubsidized bread, identify the factors affecting dispensing rationed foods and to determine consumer's opinion towards the subsidy program.The subjects of this study were 204 employees from Alexandria University hospitals. Data were collected by direct interview using a predesigned questionnaire. Data were collected on the socioeconomic characteristics of the family, purchase of subsidized balady and unsubsidized shami and fino bread. The fate of the subsidized bread and consumers' suggestions to improve its quality were assessed. The rate of dispensing foods through ration cards was determined. Consumers' opinion of the nutritional values of the subsidized foods and the preferred mode of subsidy were recorded.The results show that subsidized balady bread was consumed by all social strata, the percapita share of low socioeconomic groups was more than 3 loafs daily. Shami and Fino bread was consumed mostly by high income bracket. The results show that 14.2% of the balady bread was wasted and 10.8% was refrigerated. The majority (46.7%) recommended no change in the current bread subsidy system and 28.9% recommended improved baking. The quantity of foods dispensed by ration card varied with the type of food. The whole quantity of allocated sugar was dispensed by 78.0% of the sample compared with tea which was least collected (49.5%). Poor quality was the main reason for not dispensing the whole quantity, however, it was reported by some consumers that the rationed quantity of sugar and oil exceeded their needs. The results show that 48.0% of the sample believed that food subsidy improves nutrition while 28.9% reported that it has no effect. The present card system of delivering subsidized food was preferred (52.0%) fearing that cash subsidy will not be enough (54.7%) or will be associated with a sharp increase in food price.