# When a meal is "comped on the house", who pays for it? **URL:** \ **Category:** Factual Questions\ **Created:** [October 5, 2019, 11:26am UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310 "2019-10-05T11:26:59Z")\ **Posts on this page:** 9\ **Page:** 2
**Author:** ![kanicbird](https://avatars.discourse-cdn.com/v4/letter/k/5f8ce5/32.png) [@kanicbird](https://boards.straightdope.com/u/kanicbird)\ **Post date:** [October 9, 2019, 3:14pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/21 "2019-10-09T15:14:33Z")
Like every other comp’ed meal, it is accounted for ultimately in the the pricing of the meals. More so in the big chains, since a comping a meal sometimes is good overall for business, it’s accounted for in the pricing model. For the consumer it’s a wash, as they will get some meals comped, and pay for some which includes a amount extra to account for the comps they receive. ---
**Author:** ![kayaker](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kayaker/32/441_2.png) [@kayaker](https://boards.straightdope.com/u/kayaker)\ **Post date:** [October 9, 2019, 3:25pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/22 "2019-10-09T15:25:10Z")
> [@CookingWithGas](#): > > Why does a bar care more than a restaurant if they are comping customers (or otherwise losing their stock)? Liquor is regulated by the state (at least it is in Pennsylvania). By law, a bar cannot comp beer/wine/liquor in excess of one standard drink per 24 hour period. Pennsylvania is absolutely anal about alcohol. A bar-owning friend of mine was fined by the state for posting on Facebook “Mix-six pack; buy five the sixth is free”. He had previously been fine with “Mix-six pack; buy five the sixth is a penny”. He can sell a beer for a penny, but giving it away for free is a big no-no. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [October 9, 2019, 3:30pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/23 "2019-10-09T15:30:49Z")
> [@septimus](#): > > (Since the following post answered OP’s question, off-topic conversation is now permitted under the rules IIUC.) > > Was ‘presents’ intended where ‘resides’ appears? Was this a typo, or spelling correction? Tyop. :smack: Sometimes my thoughts go faster than my fingers. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [October 9, 2019, 3:45pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/24 "2019-10-09T15:45:16Z")
> [@drachillix](#): > > I could go on for an hour as to why you may want to buy those watermelons anyway because the potential gain from the opportunity to sell is smaller than the potential loss of a minor amount of spoilage. You would need to look at the history of watermelon sales and the COGS vs. variations in sales within the salable time frame of watermelons. For one time period, you would be correct. Over months or years of watermelon sales you might sell those extra 10 more often than throw them away, making the loss worthwhile. Oh, I agree. I said “Just buy 90 next time” as an example but my point was that it is worth recording what happens to your stock just so you can make the kind of analysis you are describing. ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [October 10, 2019, 12:56am UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/25 "2019-10-10T00:56:39Z")
> [@dalej42](#): > > There’s not really a GQ answer, I think. If the manager comes out to apologize that your steak was overcooked and lets you know they’re cooking a new one , well, that’s not the fault of the server. If the server is outside the restaurant on their phone having a fight with their girlfriend/boyfriend for 30 minutes, then that would be different. Maybe GQ answer. How involved in the waiter/ress? I’ve had this happen to me twice, overcooked steak, in the same restaurant, on two different occasions. Although I left a good tip by USA standards (and this was in Canada) both times, I could have justified discriminating. The first time, having shown the waitress, she agreed, “oh, yeah, that’s not medium rare” and took care of the situation. The second time, she either didn’t quite believe me, or didn’t know what to do, and had to call her manager to help out. I didn’t fault her for this in the tip, but it left a bad impression, to the point that I remember it today. Based on the first experience, I knew that she was obviously empowered and had some degree of ownership over the situation, so defaulting to her boss was weak. Oddly, on the first one, they took care of it, and gave me a new steak, making me happy and satisfied. For the second one, they tried to comp me new steak. I actually refused, because that was stupid; just make me whole. In the end, it was my birthday, so I requested a dessert instead of the comp’d steak, and that was to make _them_ happy and not me. This the “The Keg,” a kind of regional chain in Ontario. ---
**Author:** ![I\_Love\_Me\_Vol.I](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/i_love_me_vol.i/32/521_2.png) [@I\_Love\_Me\_Vol.I](https://boards.straightdope.com/u/I_Love_Me_Vol.I)\ **Post date:** [October 10, 2019, 2:01am UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/26 "2019-10-10T02:01:54Z")
> [@Joey\_P](#): > > RealityChuck mentioned that no one pays for it since it’s only the COGS that are being lost, but it’s still money. > As an example, a $100 steak dinner costs a restaurant about $35 in ingredients (COGS), about $15 will trickle down to the bottom line (profit) and the rest is overhead (wages, taxes, insurance, electricity etc). Ignoring the overhead, since that stays the same whether or not they make the dinner…if I sell a steak dinner, someone, somewhere puts $15 in their pocket, right. If give away a steak dinner, that person is going to pay $35. COGS? Did I miss where you spelled out what that is? If so, sorry about that. If not, why didn’t you say what it means? ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [October 10, 2019, 2:04am UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/27 "2019-10-10T02:04:53Z")
> [@I\_Love\_Me\_Vol.I](#): > > COGS? > > Did I miss where you spelled out what that is? If so, sorry about that. If not, why didn’t you say what it means? Cost of goods sold ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [October 10, 2019, 3:10pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/28 "2019-10-10T15:10:08Z")
> [@I\_Love\_Me\_Vol.I](#): > > COGS? > > Did I miss where you spelled out what that is? If so, sorry about that. If not, why didn’t you say what it means? It is an accounting initialism for Cost of Goods Sold, which is a category of all of the costs that go into a…good that is sold. It includes materials (food, in this case) and direct labor (the cooks and servers) that go directly to making the good. It does not include overhead, like paying the electric bill. It’s an Accounting 101 term so **Joey P** may be so familiar with it that it didn’t occur to him that others might not be. ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [October 10, 2019, 3:48pm UTC](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310/29 "2019-10-10T15:48:02Z")
Yes, when my wife managed a restaurant, she could “comp” meals for goodwill - complaints, errors, etc. She would even comp part of the meal (without telling the customer) to reduce the amount of the bill because certain ethnic groups were noted for not tipping and with a big group, the server deserved a tip. (Being fair and keeping staff happy is as important as happy customers) Who pays for that? As others note, the restaurant has accumulated the expense of the COGS (components of the meal) and the labour and other overhead to prepare and serve it, and received no money for it. So those costs are essentially paid out of reducing the total the profits, which are made from other meals. If the restaurant screws up you meal and apologizes and tries to give you a replacement, done right, for free, you are more likely to keep coming back than if they tell you “It’s still a steak. Quit complaining.” fixing problems is a cost of doing business, like the inevitable waste. The management or owner may comp meals for friends or celebrities - if the owner does, that’s him giving away his profits. If the manager does, it’s theft unless the owner says they can. One problem, especially with fast food is employees giving stuff to their friends. Celebrities can be good for a restaurant… “Let’s eat there. May we’ll see Snookie from _Housewives_…” As for alcohol, the problem is that some people will try any trick in the book to get free booze because it’s an addiction. Plus, there’s a lot of money flowing for limited effort, so an incentive to steal or cheat. (It’s a lot easier and less noticeable to pour an extra shot than prepare a full course steak meal). (Also note that with McD’s - my wife worked where they instituted a rule that all leftover food at closing goes in the trash. This was necessary when she saw that if the staff could take home the precooked but unsold food, they would be incentivised to make too many mcNuggets or burgers close to closing time… abusing a privilege. Cooked but unsold food is waste, which also cuts total profits.) [Previous page](https://boards.straightdope.com/t/when-a-meal-is-comped-on-the-house-who-pays-for-it/841310.md?page=1)