Service, Freebie, Giving A Freebie
noun, する verb
This is the equivalent of the English word service. By extension, it's often used to mean a freebie. Though it's generally used as a standard noun, it can also be a verbal noun used with する. In this case, it means giving a freebie.
あのレストランのサービス、ビミョーじゃない？
The service at that restaurant isn't great, is it?
サービスです。
It's on the house.
えー、ただのリップサービスじゃない？
Eh, it's just lip service, isn't it?
クリームパン買ったら、パンの耳、サービスしてくれた。
When I bought cream buns, they gave me bread crusts for free.