My fiancé is obsessed with buying these things to save money when we go out to eat. Lately, I've been wondering if we're actually hurting the restaurant. I mean, do they take a hit in hopes to get you back in? If that's the case I kind of feel like a dick using them. Can someone explain how they breakdown financially for a restaurant? Anyone here refuse to use them? Anyone only use them?
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Do deals from Groupon and Living Social hurt restaurants?
- Thread starter SeanR1221
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They're loss leaders, I'd imagine. For every 10 people that don't come back, maybe one does (or at least, that's probably the hope).
Coupons have always worked for restaurants on the basis that a certain percentage will come back without them next time if they liked the place. As long as the restaurant is doing a nice job, people should come back.
Also, profit margins being what they are, if you order drinks or dessert they're still probably making money.
Also, profit margins being what they are, if you order drinks or dessert they're still probably making money.
Joe Shlabotnik
Banned
There were some articles shortly after the initial Groupon craze that the deals weren't really working out for a lot of restaurants. But as they're still around, perhaps it was exaggerated or the terms have changed.
Regardless, I don't know why you'd feel like a dick for using them. Your end of the "deal" is to use the coupon, that's it. There isn't some national mandate forcing restaurants to participate.
Regardless, I don't know why you'd feel like a dick for using them. Your end of the "deal" is to use the coupon, that's it. There isn't some national mandate forcing restaurants to participate.
It hit me more last night at this Italian place. They said it was going to be a 45 min wait, so we walked over to target. We came back 20 minutes later and the hostess said they already called our name. The owner was extremely apologetic, and sat us in 10 minutes (which was still sooner than the original 45 so I didn't care). The service was exceptional and they even gave us a free order of bruschetta due to the mix up. I even left a 40% tip because I felt so bad the bill was only going to cost us 5.00. I said we would definitely come back but I couldn't shake the guilt of using that damn living social deal.
Why are you guilty? They paid for that deal to get you to come in and have a wonderful experience, and they're hoping you'll like it so much that you'll return.
The worst Groupon deal I ever saw was for a butcher shop in Toronto that got way in over their heads. It was something like 90% off organic meats and people were buying thousands of dollars worth of coupons because they didn't set a limit or expiration. Turned out they had signed contracts with dozens of coupon sites and in the end had committed themselves to over a million dollars worth of product for less than $250,000.
I originally felt bad, but they were so shady. First they changed the terms to state that coupons could only be used Monday through Friday. Then they changed the terms to state that coupons could only be used Mondays. Then it was Mondays before 4 p.m.
Eventually people started realizing that they had stopped selling organic meat. Someone bought a load of sausages and performed an iodine starch test and took pictures of the result showing that they were over 80% filler.
I originally felt bad, but they were so shady. First they changed the terms to state that coupons could only be used Monday through Friday. Then they changed the terms to state that coupons could only be used Mondays. Then it was Mondays before 4 p.m.
Eventually people started realizing that they had stopped selling organic meat. Someone bought a load of sausages and performed an iodine starch test and took pictures of the result showing that they were over 80% filler.
I found my favorite two restaurants due to groupon.
Without groupon me and my gf would eat out much less often. We are both super picky when it comes to eating out but if it's half off or whatever we say fuck it and go.
If it hurts them they shouldn't sign up after the first time, their own fault. Most restauarants fail miserably anyways, probably just looking for a scapegoat if groupon is mentioned.
Our servers are rude, out place is filthy, our food sucks, we are over priced, we failed because we used groupon!!!!!!!
Without groupon me and my gf would eat out much less often. We are both super picky when it comes to eating out but if it's half off or whatever we say fuck it and go.
If it hurts them they shouldn't sign up after the first time, their own fault. Most restauarants fail miserably anyways, probably just looking for a scapegoat if groupon is mentioned.
Our servers are rude, out place is filthy, our food sucks, we are over priced, we failed because we used groupon!!!!!!!
StrangeADT
Banned
What is wrong with you? Get what you can in life. You're constantly being screwed by businesses. Who cares if once in a while you get to give it back. They signed up for the deal. Essentially it's already a sunk cost for them. This isn't charity. If you're so worried, don't use your coupon.
Yeah I have heard that some restaurants do lose out on those coupons. I would say if you feel guilty think about going back sometime. That's why they're doing it. It's advertisement, and they're hoping if you like it that first time you'll go back. The people that they don't like are the ones that only get groupons and stuff and go only to restaurants when they have them. They're not repeat customers and they don't intend to ever be. But, in the end, when you put up a coupon like that you take those people into account and hope you make out better through the people that do return or talk about your restaurant to a friend.
The company I work for uses groupon and living social to great success. We're a laser tag place, though, so we really don't lose any money at all when someone comes in with a groupon, because we don't really have some product that we're selling them. Sometimes they do take up space that a full paying customer might have used, but that's about it. Most people that come in tend to come back at some point, so we're not worried about it at all.
The company I work for uses groupon and living social to great success. We're a laser tag place, though, so we really don't lose any money at all when someone comes in with a groupon, because we don't really have some product that we're selling them. Sometimes they do take up space that a full paying customer might have used, but that's about it. Most people that come in tend to come back at some point, so we're not worried about it at all.
The fuck is wrong with you? The restaurant chooses to be part of the deal, and the difference between a $1 tip and a $2 tip is not exactly earth shattering.
I mean, it's nice that you are concerned for people, but come on.
djplaeskool
Member
The deal is meant to get you in the door.
A good restaurant will get recurring business (from me at least).
Restaurant wins.
Thanks to Groupon/ScoutMob/etc, I've a number of new go-to spots around Atlanta.
A good restaurant will get recurring business (from me at least).
Restaurant wins.
Thanks to Groupon/ScoutMob/etc, I've a number of new go-to spots around Atlanta.
Obviously a restaurant wouldn't sign up to offer a Groupon if they didn't think it would be financially profitable for them. That said, many, many people who run restaurants don't really understand how to run a business. Is it your responsibility not to screw a restaurant that will lose money because it's poorly run? That's kind of up to you.
Groupon kicks back I think half the coupon value to the restaurant if it sells. One thing some people don't know is that they won't kick that back for a few months, so the restaurant is fronting quite a bit of cash for that period. And they definitely will lose money either way if you don't come back. So if you find a restaurant you like, tell your fiance you want to go back there! Sooner the better, really, because the period where they're hurting the most is right after the groupon sells.
speculawyer
Member
I left a 15.00 tip?
Seen a lot of articles about this, here are a couple...
http://www.pcworld.com/businesscenter/article/229644/why_groupon_sucks_for_small_businesses.html
http://www.slate.com/articles/techn...y_business_model_is_finally_dead_hooray_.html
http://www.pcworld.com/businesscenter/article/229644/why_groupon_sucks_for_small_businesses.html
http://www.slate.com/articles/techn...y_business_model_is_finally_dead_hooray_.html
40% of 5 is 15?
40% of the actual price of the meal.
You pay a tip on the cost of your order, not the amount you paid GroupOn.
He clear meant the total bill before the groupon discount
It always says on the coupon to please tip on the pre coupon amount. People who don't/barley tip will do so either way, and those that overly tip will do so as well. Unless the groupon user is actually illiterate.
I tip basically a flat amount for how long I am somewhere +- how good it is.
I'm not going to screw a server over on a tip if I end up only spending 10$ or less on a meal.
A server who takes my 10$ order.
A server who takes my 40$ order.
I struggle to see why the second server deserves ten times more/first server deserves ten times less than the first unless I am taking up their table for a crazy long time.
And I would argue that it's the job of responsible consumers to be concerned about the effect of deals like these on their local economy since it effects them and their community as well in the long run.
But really "job" is a poor way of describing our roles as consumers anyways. A Walmart opening in Queens, NYC would certainly bring lots of great deals and low prices for all the things they sell, but yet I am fiercely against Walmart setting up shop here because of the effect it would have on the local economy. Note that this does not mean I am against Walmart as a business.
Beyond that, there are the moral implications and how important those are to each individual consumer versus the benefits of being a "smart" consumer. Some people are just more empathetic.
Note, again, that this does not mean I am against Groupon or LivingSocial as businesses.
You'd be amazed how many people a) don't read a single word of what they bought, and b) do indeed tip on the discounted amount, despite every subtle effort of the front of house to guide them into doing the contrary.
You liked the experience so why not return at some point and pay full price and then you'll have done what they intended you to do when they gave you the coupon?
I think the point is that if you're paying $300 for a meal, your service is going to be crazy good and you should tip accordingly.
Yes, they do hurt a lot, to the point of risking bankrupcy for a restaurant owner if he doesn't say "NO" at several vital points to the sales person.
also, most groupon customers just shop around for bargains and will never be seen again as regular customers.
I usually advise our members to not take part in such deals.
also, most groupon customers just shop around for bargains and will never be seen again as regular customers.
I usually advise our members to not take part in such deals.
Only if my feet are washed.
Have you ever paid $300 for a meal? There's usually 4 or 5 people waiting on you and performing different tasks. It's not too far off.
DR2K
Banned
It was a huge loss for my last company. These people were never return customers and they would bitch and moan if they had to spend one penny outside of their coupon.
I'm joking, jeeze. I'm protipping
Maybe I've just had bad luck but I've always had nicer/better informed servers at random small cheap places than places like the jazz brunch in New Orleans that was like 150$ but both times we went our waiters were dirtbags even though the food was amazing.
Our Groupon deal for my family's restaurant is a dozen oysters and any 2 entrees on our menu for $39. Needless to say, we got a huge reception. Despite the boost in exposure, the demographic we got are the kind that probably wont be coming back, at least not without another coupon.
Also, only about 25% actually tip on the actual cost of the meal and 40% ordered nothing except what the Groupon stipulated. This is our experience and we did this during the summer, which is generally our slow season. We will most likely not be participating during the holiday season.
Also, only about 25% actually tip on the actual cost of the meal and 40% ordered nothing except what the Groupon stipulated. This is our experience and we did this during the summer, which is generally our slow season. We will most likely not be participating during the holiday season.
To be fair I don't know if I could eat much more than half a dozen + an entree that's alot of food.
Can you provide more details? Other than needing my drink constantly filled, I cant see why I need 4-5 people waiting on me.
D
Deleted member 20920
Unconfirmed Member
What was the original price for your deal? I have a feeling that many, like the OP's girlfriend, would only visit the place again only if there is a groupon deal again. Maybe people are out looking for cheap deals rather than a chance to possibly find a restaurant that they would go to frequently. Unless your food and service is really exceptional and unique, the next cheaper groupon meal is probably more enticing than a revisit at a higher price.
Personally, if I were to own a restaurant (and this idea just randomly poped in, am no business expert) and try out groupon deals, I would give each groupon customer that visits a short term discount card (that grants less discount than a groupon deal of course) or a voucher. At least that would sort of entice them back if they ever have a sudden want/need to eat at a restaurant and is near mine.
It's about making you feel like royalty. I'm not sure how they train the wait staff but they're constantly aware of what you're doing. There's the person that fills your drinking glass and asks if you want another cocktail or glass of wine when you finish yours, the person that takes your food order, the person that brings your food order and explains the dish, the person that sweeps your crumbs after you finish a course, the person who brings you new cutlery between courses and in some places, a person whose job it is literally to know if you're about to get up to go to the bathroom so they can pull out your chair for you.
They're all busy all the time, generally, because they work so many tables, and I doubt they get much break time.
Well than a take it back I'm glad at expensive restaurants I've gotten mostly douches and people who aren't around when I need them.
If I wanted people hovering over my whole meal I'd go to my grandmothers house.
what the fuck? whenever you go to a restaurant you're getting raped with what they charge you for the food anyway, and you don't want to be "mean" to the restaurant by using coupons?
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