Wednesday, April 13, 2011

Are Groupons and their clones the next Value Meals?

There has been all of this talk of economic recovery. Supposedly its in it's second year. Yeah, well most of that hasn't found its way back into my pocket book. My guess is, that it hasn't really hit yours yet either.

One of the biggest fads to come out of the recession has been the frugal diner. The grouponista has emerged, victorious in their lust for delicious food in a budget that they can afford.



Only problem is, when people see a successful model they try to replicate it and get some of that success for themselves. There are now more web-discount programs out there I can't keep them all straight.

There is a great article in this weeks NYT Dining & Wine that talks about the impact of these sites on restaurants. Reading it, I was surprised that I didn't know about half of the ones they mentioned.

Maybe its because I worked in the industry -- and in many ways still do -- but I find it terrible that restaurants make no money off the discounts. I've been one to use these discounts before. I just went out and had a great meal the other night using a Groupon, and have gone out two or three other times in the past month with deals from restaurants.com. I figure, I am no different than most other people. 

Dramatically simplified the article raises an interesting question of what a restaurant actually gains from these coupons. None, it seems, gain anything from this coupon, except maybe exposure. 

Jesse Schupack, the director of communications for the two Landmarc restaurants in NYC is quoted by the Times saying, "the customers who are paying full price are subsidizing the discounters."

He raises another question question that he proposes, "So how long does it take for patrons to think, 'why should I ever pay full price?'"

So what do you think, reader? If this web-discount bubble continues to grow are we going to have to go out to eat armed with iPhone aps and web-coupons? 



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