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Guests do your restaurant marketing via Groupon, how low will you go?

  
 

You know the question:  "Will you give me a discount for volume.  If so, how much?"  If the consumer is doing your restaurant marketing via a services such as Groupon, how low will you go?  If you could "eliminate" marketing costs, what is that worth?

From MediaPost:

Zagat

Jumping on the group buying bandwagon, Zagat Survey next month plans to roll out a new online program offering deals at restaurants beginning in New York City.

"Zagat Exclusives," powered by Groupon competitor DealOn Media, will offer restaurant discounts in limited quantities for fixed periods. The initial price will drop as more people buy the offer, with the final price at the end of the sale interval what all participants end up paying.

Restaurant deals can take the form of a prix-fixe menu (including appetizers, entrees, deserts and coffee) offered at a special price or, say, of a $100 voucher for $65. Zagat declined to name any New York restaurants involved at launch, but said they will range "from relaxed and casual to special-occasion spots" listed in its familiar red guidebooks.

Read more ...

Comments

Seems really unfortunate to me that Zagat would enter into that model. They have been in a class of their own with respect to restaurant guides for years both in print and online. Two things that really bother me about all of the aforementioned players in this arena is that they really could care less about the independent restaurant business. The second is that restaurants give up discounts so that the discounters can attract more eyeballs to their sites.  
 
 
 
Additionally, a large majority of the reviews are simply not credible. I just read a review from a reviewer who states that he is a math teacher in his twenties who writes: 
 
 
 
"Reviewed by Andrew Hill on 03/01/2009. 
 
Member since April 2008, Total Reviews: 89 (Male, 20s, Bethel, CT) 
 
This restaurant was once owned by the owner of The Fat Canary, and the two still sit across from each other on Duke of Gloucester St. However, the original owner has backed out due to the downhill slide of The Trellis. For the same prices as the Fat Canary, you can get food with no flavor and 19-year-old obsequious waiters who will lick your feet for a tip. My bone-dry quail was especially disappointing. Hoping they will soon be out of business."  
 
 
 
He states facts are absolutely false but he did spell obsequious correctly. 
 
 
 
My point is that independent restaurants have money taken out of their registers and their reputations maligned by the same people that claim to be helping them.
Posted @ Friday, August 13, 2010 1:23 PM by Mark Moreno
Mark, 
 
What can I say? 
Astute, thoughtful, and true. 
 
Thank you. 
 
Here is the challenge along the way. 
The restaurant across the street is doing "desperate" in the attempt to keep doors open and will look at this as potential help (without crunching the numbers.) The other operator better be ahead of the game or lose. 
 
The other challenge is: those hard working independent restaurant owners who are looking for solutions that seems "push button".  
 
It does look "easy". Fortunately, those I connect with see the weakness as you do in the numbers.  
 
On the other hand, a brand new restaurant who is trying to make a big splash, gain contacts and emails might to a short term campaign. 
 
I guess if a restaurant owner is motivated to attract guests who shop online at 50 cents on the dollar discounts, then maybe this is good for them. (I will of course be watching closely to see how.) :) 
 
The other side of the coin, the consumer during times of trouble just may get a few more great deals.  
 
Your contribution is appreciated. Great thoughts. Thank you!
Posted @ Friday, August 13, 2010 2:02 PM by Michael Hartzell
A merchant can pay upfront for advertising like they do with radio, TV and newspaper and hope that someone see that ad. Thats the old model, it places all the risk on the advertiser. This new deal model is much less risky for the advertiser. there is no upfront costs and if the marketing partner cannot deliver customers then ythe advertiser loses nothing. Who do you think delivers bargain hunters and coupon clippers, Groupon or Zagat? I dont need a survey to answer that.
Posted @ Saturday, August 14, 2010 3:27 PM by Marketing turd
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