招牌 literally combines 招 (zhāo, 'to attract' or 'to recruit') and 牌 (pái, 'signboard' or 'plaque'). Together, it refers to a physical sign displayed outside or above a shop, restaurant, or business—designed to attract customers and identify the establishment. These signs often feature the business name, logo, or distinctive imagery, and may be illuminated or stylistically unique.

Beyond its literal meaning, 招牌 also carries a figurative sense: it can mean a 'trademark', 'hallmark', or 'signature feature'—something that defines or distinguishes a person, product, or institution (e.g., a chef’s famous dish or a company’s renowned service). This extended usage is common in both spoken and written Chinese, especially in marketing or descriptive contexts.