I am astonished at the assertion that room service loses money. Perhaps this is true in the US or Europe, but in Asia I cannot believe that the char kuey teow and iced coffee that I can get for $2 across the street, but from room service will run me $30 is a money loser.
I am a frequent room service user. Coming back to the hotel after a long day of work and traffic in a foreign country, I do not want to turn around and go back out for more hassle.
I also choose hotels in certain cities based upon their room service. For instance, in the late nineties and early oughties, the Hyatt in Taipei received all of my business there simply because their room service was so far superior to any other hotel in the city.