Restaurant Marketing: Are Deal Sites Worth It?

By Emily Callaghan, Communications & Marketing

We’ve all seen them: $20 vouchers that will score the buyer $50 to spend. Or a bargain-priced $35 for a four-course meal costing nonsubscribers double that amount. While the guest might get a bargain, are the Groupons and LivingSocials of the world a death sentence for restaurants?

Let’s consider which restaurants participate in such promotions. Since restaurants receive a poor return on every deal after paying service fees—typically earning around 25% on every dollar—a busy, successful establishment isn’t likely to offer these deals. Read on here: Groupon and Living Social: A Death Sentence for Restaurants?

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