Who exactly pays for the meal when its “on the house”?

Question

Who exactly pays for the meal when its “on the house”?

In: Other

Answer 1

Businesses have expense accounts. Restaurants are a business. They either have their own account or the owner puts up their own money. The money to pay the staff and buy the food should come from these accounts. However, even the staff sometimes may be donating their labor for the success of the restaurant to make money later.