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Old 02-20-2014, 03:28 PM
 
Location: Avery Ranch, Austin, TX
7,876 posts, read 12,894,907 times
Reputation: 3279

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Got nothing against Groupon...don't use it as much as a couple of years ago; but I can see it as a viable marketing tool for some businesses. However, I was looking through my 'history' with them and found a disturbing number of Groupon-using businesses were GONE...just a few for example:
Cuatro's
Hemingway
The Meat House
El Patron--Cedar Park
Manny's Uptown Kitchen
(my first Groupon experience)

A couple of these were perhaps predictable; but it IS a little curious that my limited experience with Groupon has this sort of trail left behind We know the food business is tough! Just didn't expect 1/4 of the places I patronized to be gone within two years of my visit!
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Old 02-20-2014, 03:31 PM
 
584 posts, read 631,001 times
Reputation: 764
If just 1/4 of the places were gone within 2 year that would indicated a better than average survival rate for companies that use Groupon. Most food business don't last that long.
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Old 02-20-2014, 03:33 PM
 
Location: central Austin
7,022 posts, read 12,529,013 times
Reputation: 3588
One of the knocks against Groupon is that it doesn't benefit the establishments that use it. Data crunching shows that contrary to promises offering a Groupon doesn't lead to repeat customers of the business.

No time to add links (will try later) but there are many analysis of Groupon that show how it often harmed businesses instead of benefiting them.
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Old 02-20-2014, 03:41 PM
 
Location: Avery Ranch, Austin, TX
7,876 posts, read 12,894,907 times
Reputation: 3279
Quote:
Originally Posted by centralaustinite View Post
One of the knocks against Groupon is that it doesn't benefit the establishments that use it. Data crunching shows that contrary to promises offering a Groupon doesn't lead to repeat customers of the business.

No time to add links (will try later) but there are many analysis of Groupon that show how it often harmed businesses instead of benefiting them.
Indeed, I think the application would have to be well thought-out. Similar with the Entertainment Book; but with the customers' money going TO the business. Just up to them how to structure it.

I do know I went out of my way to visit a few of the places...Cuatro's for example...had never even driven on that street! Of course, we ended up spending more than the value of the Groupon and if circumstances had been different, might have become semi-regulars. Most of the other places are along my usual stomping paths; but the Groupon might have gotten me to stop in rather than pass by.

Like I said, some of those were predictable...let's be careful out there!
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Old 02-20-2014, 04:53 PM
 
5,082 posts, read 6,233,640 times
Reputation: 7826
A lot of failing business turn to Groupon in an effort to boost business. The hope is that people will try a business because of Groupon, like it, and come back. Groupon isn't causing businesses to fold. Most were in a bad situation before that and turned to Groupon in hopes it would help change things.
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Old 02-20-2014, 04:53 PM
 
Location: Austin, TX
7,159 posts, read 15,875,652 times
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The Meat House, at least, suffered from a cursed location more than anything. Westlake can be a really tough place to start anything like a restaurant or similar. They get fooled by volume of traffic and people during the day (due to work), but then it's almost deserted at other times, because really very few people live there -- it's not dense at all. And who drives in to Westlake for dinner or shopping? Practically no one.

And I hate to say it, but even the Trader Joe's in Rollingwood is in what I'll call the "cursed zone". I knew when Sprouts opened there, it would be closed soon. And sure enough, soon after opening they had hardly any traffic.

There are a few exceptions which strike a chord with the locals, but it's rare. Maybe TJ's will buck the trend, but my suspicion is that it's already probably seen a significant drop since opening.
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Old 02-20-2014, 05:08 PM
 
Location: Avery Ranch, Austin, TX
7,876 posts, read 12,894,907 times
Reputation: 3279
Quote:
Originally Posted by atxcio View Post
The Meat House, at least, suffered from a cursed location more than anything. Westlake can be a really tough place to start anything like a restaurant or similar. They get fooled by volume of traffic and people during the day (due to work), but then it's almost deserted at other times, because really very few people live there -- it's not dense at all. And who drives in to Westlake for dinner or shopping? Practically no one.
.
Actually, I was speaking of the Meat House in Avery Ranch. Had troubles getting open and didn't even last a year, IIRC. A northeastern company coming to Texas to sell meat...who 'd'a thunk it? Even with plenty of residents and traffic...morte. SOMEbody lost some serious money on that one!
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Old 02-20-2014, 05:43 PM
 
Location: Austin, TX
7,159 posts, read 15,875,652 times
Reputation: 3444
Quote:
Originally Posted by 10scoachrick View Post
Actually, I was speaking of the Meat House in Avery Ranch. Had troubles getting open and didn't even last a year, IIRC. A northeastern company coming to Texas to sell meat...who 'd'a thunk it? Even with plenty of residents and traffic...morte. SOMEbody lost some serious money on that one!
Ah! I didn't even know they had multiple locations. Well, I doubt the location was the problem in Avery Ranch. So maybe the Groupon curse after all... or perhaps it a symptom rather than a cause? Companies willing to accept the Groupon promise to increase their business are already desperate?
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Old 02-20-2014, 05:57 PM
 
181 posts, read 322,777 times
Reputation: 65
I always felt that restaurants or other places that offered groupons were already in trouble. There are a bunch of others that are gone also, I eat out a lot. They needed to drive traffic into their place because why offer deal if you already are busy. Only place I ever went back to was Hemmingway, because their hamburgers were good.
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Old 02-21-2014, 05:21 AM
 
1,697 posts, read 2,015,196 times
Reputation: 2592
Taking Groupon is a sign of desperation. A failing business offers merchandise or services for half price and then Groupon only gives the business half of that. Groupon promotions produce a temporary surge of transactions at a loss from a segment of the public that is unlikely to come back and pay full price.
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