This will be fine until some PC knobhead says that the policy is discriminating against people who didn't serve. You can be as sure as night follows day that someone will complain and this chap's well-meant gesture will be a subject for 'disciplinary action' when he comes up for some bull**** 'annual appraisal' with a hair-gelled consultant in a cheap suit and garish tie.
A couple of years on my way to Salisbury from the Army Flying Museum at Middle Wallop, I was in a road stop where two chaps in Army uniform had just finished a meal, as the waitress passed me I asked her to give me their bill. When I went to pay, some miserable old sod sitting at another table cantankerously asked me if I'd like to pay for his too. Yet he might have had a point, for all I knew he could have been in the forces in his past.