I responded downthread to someone else making the same point. I'm sure there are some restaurant models that support that idea. My only exposure is to mid- an

I responded downthread to someone else making the same point. I'm sure there are some restaurant models that support that idea. My only exposure is to mid- and fine-dining where at least these particular owners weren't putting loss leaders out there. Some items had higher margins than others, but nothing on the menu had a negative margin. There are some exceptions like "holy shit I need more avocados and they're $100 a case all of a sudden" but that situation wouldn't last long. Bargain hunters, I'm told, are bad customers for restaurants. The person coming in for a great deal on $20 chicken is also squeezing a bowl of lemons into a glass and asking for more sugar packets. That's what they tell me, anyway! However, my overarching point would be that a restaurateur needs to understand operating costs in great detail. If a loss leader is going on the menu, you need to be engaged enough to know it's a loser, by what margin, and also the benefits of keeping it around. The article in the OP suggested no such CBA was really occurring.