The taste lost $1.3 million last year.
The losses come on the heels of major changes after Mayor Emanuel took office.
He cut the event from 10-days to five and moved it away from the July 4 holiday.
The city also charged for reserved seats at some concerts and added $40 gourmet meals prepared by local chefs.
The mayor’s office is backing off the push to make the lakefront festival profitable now saying the focus is on safety rather than the bottom line.