The 5 Reasons Why Groupon Like Company's Are Bad For Your Restaurant

Anybody thats thinking of doing a groupon like coupon or feature for your restaurant. PLEASE READ THIS NOTE and understand the 5 problems you will encounter .
1) Deals are discounted 50% off retail price. Example $15 for $30 worth credit. Sounds great but we are giving 50% off of which groupon keeps half of the sale. Business owners are keeping 25% percent of what they normally make on any sale.
2) Attracts the wrong customers for your business. Most restaurants that have done these deals complain that the new customers are just out for the deal and will spend as little as possible to redeem the voucher. You will encounter lower tips and rarely will you turn them into good returning customers.
3)Too many customers to soon. The power of group buying can rally enormous numbers of people to your business. Its good to earn new sales, but the high traffic in a short period can be a recipe for disaster for a business thats not prepared. Man power issues, customers suffering with waiting times or food not coming out quickly. Results can effect your online ratings like yelp and word of mouth by unhappy customers is never good.
4) Lower profit margins, forget about making any profits from customers that buy the deal. Most businesses that feature these deals are lucky to break even. Remember your making 25% of what you normally take in.
5) No customer addresses gained. The single most important thing in the restaurant business is capturing your customers email address.
I agree with this article completely, as i have featured groupon with my restaurant and it was the worst marketing move i have ever done. Pleae understand the problems before you commit to these deals. I would like to point out that these deals are very helpful for companies (insurance, accountants etc) for gaining new clients.

thxs Jeff Killeen "phoenix arcadia business specialist"  Facebook link