Raped? I think you're exaggerating.
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Do deals from Groupon and Living Social hurt restaurants?
- Thread starter SeanR1221
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Yes. There's been a shitton of stories coming out the last couple of years about restaraunts/cafes/small retailers regretting their decision to get in bed with Groupon and similar sites. I live in an area that is chocked full of these small local businesses and want the good ones to stay open - so I have quit using coupon sites like this.
How does a restaurant make money? They buy their ingredients and supplies for a cost (lower than usual because they usually buy a lot in quantity), and sell it high on the menu.
If you go to a decent Italian restaurant, a plate of pasta would be around 20$. How much would it be to buy your own and make it at home?
onadesertedisland
Member
Fixed cost business that can add additional customers without significantly increasing costs can benefit (painting classes, zoos, zip-line tours etc.). Sellers of goods will not benefit as the coupons do not build traffic and only attract bargain hunters that will likely never return.
All that's on the menu is pasta, right? Excluding the fact that, even in a world where plain pasta is 20 bucks, a decent italian place makes their own. Can you do that?
Do you have the time, talent and knowledge to recreate it?
Didn't think so.
So providing a service, aka, cooking for you is being "raped?"
Every business is raping you.
I don't know how it is internationally, but here locally there have been numerous reports on shady business practices by GroupOn at one moment even offering a deal on a company that never signed a contract with them. Most complaints are about messing with numbers and stuff like that, so I wouldn't buy anything from them if you want to support local restaurants.
The average restaurant margin is 3%. I don't think you have much of an idea what goes into running a business.
ah, my bad.
It would vary depending on the entree's folks would choose. The actual check would average out to be around $80.
NervousXtian
Thought Emoji Movie was good. Take that as you will.
Ask that to my friends who run restaurants what the real cost to keep a place open and serve you a meal is.
Zoe
Member
I've heard stories about shady sales people from Groupon screwing over small businesses. Things like putting up the deal before the business was ready for it, being liberal with the terms, etc.
I do use Groupons quite a bit, but I don't use them for small businesses, and we always order more than the deal and tip on the full price.
I do use Groupons quite a bit, but I don't use them for small businesses, and we always order more than the deal and tip on the full price.
BigJonsson
Member
If they are using money from their marketing budget then it may be ok, but if they have no marketing budget then its not a good idea
D
Deleted member 1235
Unconfirmed Member
deals only activate when they sell a certain amount. So I'd imagine there is a 'break even' point. if a business sells 80 discounted meals they probably still make a small profit on each one and they sold 80 meals. also they fill up the restaurant which helps with the vibe.
restaurants have a ridiculously high failure rate. Groupon doesn't mean you're hurting them.
Well that's kind of the point. They don't hover, they just appear to do their jobs and then disappear again. It's their duty to do everything without getting in the way.
Skel1ingt0n
I can't *believe* these lazy developers keep making file sizes so damn large. Btw, how does technology work?
We were going to use a Groupon at The Hereford House tonight.
But our waiter was super friendly, provided great service (even got us something currently not on the menu) and quick. When our bill arrived, he had not charged us for my mother's meal, my drink, and he undercharged us for the appetizer that was a special request.
Our bill was a good ~$20 cheaper than we were expecting. Because of the great service, we decided to keep our coupon, and it would entice us to return again in the next couple weeks. So in a way, it worked... but kind of backwards from what they probably expect.
We also left a ~23% tip based on the original value that our bill should have been, too, as we were so pleased.
But our waiter was super friendly, provided great service (even got us something currently not on the menu) and quick. When our bill arrived, he had not charged us for my mother's meal, my drink, and he undercharged us for the appetizer that was a special request.
Our bill was a good ~$20 cheaper than we were expecting. Because of the great service, we decided to keep our coupon, and it would entice us to return again in the next couple weeks. So in a way, it worked... but kind of backwards from what they probably expect.
We also left a ~23% tip based on the original value that our bill should have been, too, as we were so pleased.
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