Yes, the "free water" business model—pioneered by companies like FreeWater—makes money through advertising revenue rather than product sales. In this 2026 business logic, the water bottle (aluminum or paper carton) is treated as a "mobile billboard." Brands pay the company to print high-quality ads and QR codes on the packaging. Because the cost of the water and packaging is relatively low (often under $0.30) and the "CPM" (cost per thousand impressions) for physical ads can be quite high, the ad revenue covers the production, distribution, and a profit margin. Additionally, restaurants offer "free tap water" because it is a loss leader; it keeps customers in the building longer, encourages them to order higher-margin items like appetizers or alcohol, and fulfills legal requirements in many regions, ultimately increasing the "Average Guest Check."