What is a "loss leader" in restaurant marketing?

A "loss leader" in restaurant marketing refers to a strategy where a specific product is offered at a price that is lower than its cost, effectively resulting in a loss for the business. The primary purpose of this approach is to attract customers into the restaurant with the hope that, once there, they will purchase additional items that have a higher profit margin. This practice capitalizes on the idea that while the initial item may be sold at a loss, the overall increase in sales from other menu items can compensate for the loss and enhance profitability.

In this context, the other options do not accurately reflect the concept of a loss leader. Selling a product at a profit to attract customers does not embody the strategy, as the focus of a loss leader is to create a loss on one item to drive traffic. Complimentary items or discounted items during happy hour might attract customers but do not fulfill the core definition of a loss leader, which specifically involves selling at a loss to stimulate additional sales.