It happens all the time
Businesses commit "selective profitcide" because it grows the business long-term. James made a good point. Free Wi-Fi brings in a different crowd to McDonald's and some of them buy goodies to eat while they surf. In the grocery business we used "loss leaders" to bring in the crowds - an item we sold at or below cost in expectation that the customer would be purchasing other groceries that would more than make up for the loss.