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Groupon Restaurants to Avoid

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Groupon Restaurants to Avoid

sqwertz | Nov 19, 2011 08:07 AM

Mandola's southwest location sold over 5,000, $20 Groupons yesterday. They are good for 90 days. Now assuming that that number is just over 5,000 and not something ridiculous like 9,999(*), and if the coupons are used _equally_ over a period of 90 days, that means about 60 coupons will be honored each day. If each coupon holder brings along an average of 1.75 people, then that's an extra 165 patrons a day. And of course many of those patrons will shift to the weekends and evenings. THIS weekend to be exact. Is any restaurant really set up to handle an extra 35-60% increase in patronage overnight? And how would you prepare for the uneven distribution of coupon redeemers during the lifespan of the coupon? (These are mostly rhetorical questions). I've been to that Mandolas and it's never very busy.

So guess where I'm *not* going to dine until March :-)

Will Mondolas make any money in the next 3 months? Groupon typically takes 50% of the sales for themselves. So that was a cool $25,000 they just made in one day. And Mondolas is now committed to serving $100,000 worth of food for a mere 1/4 of it's usual price. Will the quality and care suffer? Probably.

Sometimes I wonder about the effectiveness of the coupon-type outfits.

-sw

(*) They had sold "Over 1,000" by 6:30am with the first 50 being bought (tipped) around 3:30am. I didn't even GET the email until 5:10am. So I'm thinking that number could possibly be MUCH higher than 5,000. They probably limit the display of that number for several reasons, one of which is the reason for this post.

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