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Discount Coupons


clayrae

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Had a really wonderful meal here last night. For those of you that aren't familiar w/ ScoutMob. It is an email based or smartphone app based coupon system. No purchase necessary, just show the coupon to the waiter/waitress and you shall receive the discount.

No doubt this belongs on a different topic but just wanted to point out that ScoutMob is more or less equivalent to Groupon Now and Living Social Instant. All have similar functionality, utility, and are equally debated as to whether good or bad for merchants. Other dotcoms like DealBurner exist to try and be "one stop shops" for all the deal providers like these; so you don't have to download 10 different apps.

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$25 for $50 at Sou'wester via LivingSocial. I've been wanting to try Sou'wester and that's what these discounts are for right? They want to get in people who are on the cusp.

Absolutely, and make sure you get the fried oysters - best in town, maybe the best I've ever had.

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Viet Star $30 certficate for $15, good until Jan. 31, can't be used for booze. Viet Star is in Eden Center, the restaurant faces the parking lot (near the fried tofu joint). I'm a big fan of its seafood dishes.

Are good restaurants not offering discounts these days or are people just tired of looking through e-mails?

I keep my eyes open for Cafe Pizzaiolo on Specialicious. They have always been wonderful with the coupons. CP has also added Market to Market in Del Ray to the Specialicious deals and that worked out for a couple of terrific sandwiches. I usually buy 2 at a time when the coupons are offered.

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I picked up some Tanpopo coupons, I have to say, I love getting coupons for places I'd like to try (if they're geographically desirable)-it's usually so cheap, that I don't mind if it turns out to be a bust...the kids ate at Red Holic today, I didn't think they would go for Joong Mi, since the specialties are jajamyun & jjampong (please excuse the spelling), I'll have to be the one to hit that spot....

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Thanks and done. Hope mine puts you over the edge (in the good/get-yours-for-free way; not in the 'other' way ;) )

Thanks! (But I was really kidding about the free thing - I actually bought two of them (one for a gift (to myself)) because Arrowine is one of my favorite stores.) I asked Doug Rosen if he'd be insulted, and he said, "No! That's why they're there!"

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Thanks! (But I was really kidding about the free thing - I actually bought two of them (one for a gift (to myself)) because Arrowine is one of my favorite stores.) I asked Doug Rosen if he'd be insulted, and he said, "No! That's why they're there!"

I've wondered about this. I occasionally see Groupons and the like for restaurants that I'm a regular in, and I wonder how much a jerk I look for presenting one.

Would love if some of our members in the biz would chime in.

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I've wondered about this. I occasionally see Groupons and the like for restaurants that I'm a regular in, and I wonder how much a jerk I look for presenting one.

Would love if some of our members in the biz would chime in.

Others may disagree, but in my case, I *always* contact the chef first and say, "Hey, would you be insulted if ...?" This question alone diffuses any possible tension. ("Of course not" is the near-unanimous response.) I remember one time, I did show up at a restaurant without asking, and the chef came out and talked to me. I pulled out my Groupon and said, "Well, I guess I won't be using this" (hoping that he'd encourage the opposite; he didn't). I ended up tearing it up, and was somewhat irked (I didn't get any freebies or special treatment, but would have felt like a creep anyway). Truth is, I wouldn't have gone there without it.

A related question: I have a coupon to Kushi that I'm honestly not sure if I've used or not (I had purchased three of them). How are restaurants about checking when you call during off-hours and ask such a thing?

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Others may disagree, but in my case, I *always* contact the chef first and say, "Hey, would you be insulted if ...?"

I think most of us don't have the cell phone numbers of the chefs of restaurants we're regulars in - I think you're the lone exception to that rule, Don. :rolleyes:

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I think most of us don't have the cell phone numbers of the chefs of restaurants we're regulars in - I think you're the lone exception to that rule, Don. :rolleyes:

Acknowledged and touché. But I also think you just answered your own question. I'd say the best thing in your situation is to mention the coupon early on to the server/bartender you're familiar with, and reassure them that you'll be tipping on the full amount. Personally I think it stinks that you have to do that just not to get The Hairy Eyeball, but in this mercantile, coupon-based, everyone-out-for-themselves world we live in, it's probably the best thing to do for your own personal comfort.

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I think that if a restaurant chooses to use social-networking coupons (Groupon, Specialious, etc.) for marketing purposes, to bring in new business, they should not have a negative attitude towards the customers it brings in. I've used about half a dozen coupons, always told my server that I had the coupon before the meal began, tipped on the pre-discount amount, & I don't think my service or food has ever suffered because of it. Maybe I've just been lucky...it's a gamble, on both our parts, if the food & service deserves it, I'll come back w/ out a coupon.

Besides, it's just good business sense not to sneer at your customers, especially when you're trying to invite them in, otherwise, what's the point?

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These are both true statements, and when I use discounts (or get comps) anywhere I always tip on the full value of the meal. I also, unless required, don't present the coupon until the bill comes, so they don't know during service I'm using it.

I'm just curious to know - does the server, GM, chef, etc. at places where I am recognized care that I have used a coupon on my meal? I don't think we can answer that - we can suppose - but only our biz members can answer truly.

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I'm just curious to know - does the server, GM, chef, etc. at places where I am recognized care that I have used a coupon on my meal? I don't think we can answer that - we can suppose - but only our biz members can answer truly.

They are getting paid their negotiated percentage of the coupon sales whether you use it or not. So you are essentially paying full price for your meal, *and* giving them a donation if you've bought a Livingsocial offer or Groupon. Not that it's a bad thing.

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They are getting paid their negotiated percentage of the coupon sales whether you use it or not. So you are essentially paying full price for your meal, *and* giving them a donation if you've bought a Livingsocial offer or Groupon. Not that it's a bad thing.

I'm not questioning whether I should use a coupon I already bought - I'm questioning whether I should buy it at all.

I go to Spice Xing all the time - coupon or no. I'll admit that I have passed on buying the last couple of Groupons there because I feel sheepish handing it to someone who hosted my son's bar mitzvah party a couple of years ago. My question is whether I should snap them up, because buying a $30-for $15 Groupon saves me $15 and who couldn't use $15 if I'm going to go anyway, or whether I'm looking like a cheapskate and affecting a relationship that I have as a long time customer?

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I don't know, if you're worried about looking like a cheapskate, tip extra generously, or order extra stuff that isn't covered by the coupon-you are probably not the customer they are trying to attract w/ a coupon, but it doesn't mean they don't appreciate your business. For me, I use them either to try out new places, or places I think my kids would appreciate. I think I've only NOT used 1 coupon that I've purchased,for Spa World, a hesitation on the nudity thing, but I don't regret the purchase...

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I don't know, if you're worried about looking like a cheapskate, tip extra generously, or order extra stuff that isn't covered by the coupon-you are probably not the customer they are trying to attract w/ a coupon, but it doesn't mean they don't appreciate your business. For me, I use them either to try out new places, or places I think my kids would appreciate. I think I've only NOT used 1 coupon that I've purchased,for Spa World, a hesitation on the nudity thing, but I don't regret the purchase...

Or, if it makes you feel self-conscious, use it on an empty Tuesday instead of Saturday at 7:30. There's something to be said for keeping servers well-paid on off-nights when they hate working and usually don't make any money at all, and if you use a coupon on one of these nights, you're helping the restaurant out quite a bit, even if the restaurant itself isn't having a "money night."

Restaurateurs, agree with this?

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Others may disagree, but in my case, I *always* contact the chef first and say, "Hey, would you be insulted if ...?" This question alone diffuses any possible tension. ("Of course not" is the near-unanimous response.)

I think that if a restaurant chooses to use social-networking coupons (Groupon, Specialious, etc.) for marketing purposes, to bring in new business, they should not have a negative attitude towards the customers it brings in....Besides, it's just good business sense not to sneer at your customers, especially when you're trying to invite them in, otherwise, what's the point?

I'm just curious to know - does the server, GM, chef, etc. at places where I am recognized care that I have used a coupon on my meal? I don't think we can answer that - we can suppose - but only our biz members can answer truly.

They are getting paid their negotiated percentage of the coupon sales whether you use it or not. So you are essentially paying full price for your meal, *and* giving them a donation if you've bought a Livingsocial offer or Groupon. Not that it's a bad thing.

I may attract some tomatoes for this but...well, here goes.

Different view on this having struggled with it myself. Important context: I do on rare occasion use coupons at places where we're regulars like Dan. More commonly, we'll use them at places where we're not regulars. Whenever used, I always tip on full balance; that feels like the absolutely right thing to do. I'm also not a business member but think this view is worth inserting anyway.

I think we're fooling ourselves to think that a restaurant being paid its negotiated percentage makes this something neutral or good in their eyes (or, more importantly, good for their books). Similarly, I think it a fantasy that contacting a chef or restaurant first extends a courtesy while reassuring the owner/chef doesn't mind. Very much in spite of their reassurances to the contrary.

Coupons are usually revenue and margin eroding; especially over the medium term (beyond the coupon period). Same as regular discounting before Groupon came along. The only reason why restaurants (or any business for that matter) offer discounts/coupons is to boost demand and hopefully convert prospects to loyal customers. Or to motivate current customers to buy and spend more than they would absent the coupon.

A regular customer using a coupon isn't helping the restaurant's financials. They're hurting them. Unless they visit even more regularly than they would otherwise.

Groupons and the others in particular are generally (not always) bad news for restaurants. That's a big part of the reason why Groupon's stock has cratered and why LivingSocial will likely never go public.

I'd imagine we have a few (but not many) restauranteurs who'd even be comfortable answering this honestly. Thistle's of course right that a smart business won't "sneer at its customers." And, along that line, I can't imagine any chef/owner Don would contact would say much different from what Doug Rosen told him. Especially true for Don, who has a bully pulpit in spite of his heart being bigger and more golden than most any food expert/writer anywere.

The economics of deep-discount deals are straightforward. To have any value to restaurants, they have to attract new customers who become regulars, not give regulars a way to pay less.

Again, I struggle with this a lot like Dan. I kind of think if you can afford to not use a coupon at a place you visit regularly, it's worth considering that.

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I think we're fooling ourselves to think that a restaurant being paid its negotiated percentage makes this something neutral or good in their eyes (or, more importantly, good for their books).

I was saying that buying a coupon, and *then* paying full price for a meal, is essentially making a donation to the place.

If groupons or coupons are bad for their bottom line, then they shouldn't do them, or shouldn't do them often. Frequent discouting cheapens your brand and trains consumers not to pay full price.

These deals are like gift certificates, and smart companies count on a certain percentage to go unredeemed. They are better than gift certs in some ways, because gift certs legally have to stay on the books for a given amount of time before they can be written off as free money.

The percentage paid on these deals can, and should be, negotiated with the company that you're working with.

The only reason why restaurants (or any business for that matter) offer discounts/coupons is to boost demand and hopefully convert prospects to loyal customers. Or to motivate current customers to buy and spend more.

Sometimes, it gives former regulars who can't afford to go out as often a way to get in the doors occasionally. I suspect the bad economy created many of that kind of customer.

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You're right, in most cases, the coupon is not helping the business; however, the business chose to use the coupon. It's maybe taking a loss, certainly discounting their services, but I don't think that I, as a customer, should feel guilty about using a coupon. I don't expect more than a normal customer going into the restaurant, but I don't think that I should feel guilty for trying to economize my experience, especially if this is something that the restaurant chose to do...

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I was saying that buying a coupon, and *then* paying full price for a meal, is essentially making a donation to the place.

If groupons or coupons are bad for their bottom line, then they shouldn't do them, or shouldn't do them often. Frequent discouting cheapens your brand and trains consumers not to pay full price.

These deals are like gift certificates, and smart companies count on a certain percentage to go unredeemed.

The percentage paid on these deals can, and should be, negotiated with the company that you're working with.

Sometimes, it gives former regulars who can't afford to go out as often a way to get in the doors occasionally. I suspect the bad economy created many of that kind of customer.

- Ah, got it on buying and paying full in addition. That wasn't clear. Clearly a very generous thing to do though not the economically most efficient way to help a restaurant since you're partly donating to the coupon company.

- The bad for bottom line thing is all about time horizon. In other words, discounters often (again, not always) expect a near term loss in return for a medium or longer term gain. For any discount offer, the business is making a gamble. It's just proven to be an especially bad gamble with Groupon, et al.

- Groupons and the others are actually pretty different conceptually from gift certs. As just one example, they don't really expire since, usually, after the deal expires, the amount you paid can still be used so the consumer (we) don't lose any money. That was a key part of Groupon's initial model in order to build a huge market of customers to buy the coupons. Also, though it varies by provider and situation, the percentage that don't get redeemed can hurt the restaurant more or less. Not as straightforward as the cash cow of gift certs that don't get redeemed where all the cash paid always stays with the provider and no middleman is usually involved.

- Reality is that, in aggregate, restaurants aren't doing these deals as often. That downward trend has been well underway for more than a year. That's why we're all getting way fewer relevant restaurant offers in our email inboxes and why the coupon companies are in financial trouble.

- A small struggling (or striving) restaurant is the best kind of prospect for a Groupon, et al. Because they're small, their leverage to negotiate good terms for itself is at best limited and usually non existent. It's not a fair fight/negotiation. The small restaurant is on one side and, on the other, a coupon company that is huge, has millions (or more) in cash on its books and totally controls access to millions of customers, Groupon took 50% for a long time on a take it or leave it basis before the wind went out of their sails.

- Agree on your last point about making it possible for some regulars who aren't as wealthy to visit more often. That's a different case since it prompts sales that otherwise wouldn't happen. That's more likely to be a 'good thing' for the restaurant as well as the customer.

You're right, in most cases, the coupon is not helping the business; however, the business chose to use the coupon. It's maybe taking a loss, certainly discounting their services, but I don't think that I, as a customer, should feel guilty about using a coupon. I don't expect more than a normal customer going into the restaurant, but I don't think that I should feel guilty for trying to economize my experience, especially if this is something that the restaurant chose to do...

Absolutely agree. It's all about whether you view the relationship with the restaurant as purely commercial or personal. As I wrote, I struggle with this too. We all have the absolute right to use any coupon. Whether we "feel guilty about using" one is an individual thing. I suspect some sense of guilt is why Daniel posed the question. I think this comes down to what relationship one thinks they have with a restaurant. Is the owner/chef a friend or family member? Or is it a provider of a service and product making you a customer and not as much a buddy? If the former, maybe more reason to consider not using a coupon at a place you frequent if you can. If the latter (probably the case for most of us at most places where we're regulars) then no reason not to use them imho. If Best Buy puts out a 10% off deal on an $800 HD TV, noone would or should consider not using it. And that's because we're not buddies with Best Buy's CEO or Board. They're a public company. We don't buy HD TVs that often. It's a purely transactional relationship. Nothing personal about it. And so on. The small neighborhood restaurant with a chef/owner you know well and have some beyond-commerce relationship with is a different--and much less clear--story.

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All good points. And the coupon might bring me to that particular restaurant, even though I go regularly, rather than going somewhere else.

But, and I don't mean to stifle the discussion, I still want to hear from some of our business members, because we're only projecting what we think they'll say.

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But, and I don't mean to stifle the discussion, I still want to hear from some of our business members, because we're only projecting what we think they'll say.

Absolutely. I'd love to hear from restauranteurs too; especially those that have used a coupon offer. In terms of projecting what they'll say, my point is that many probably wouldn't be comfortable being honest about this in a public forum. Though one of the many awesome things about dr.com is we have some chef/owners who'll be direct about most anything too. Maybe Msgr. Landrum will have a good classic rock YouTube video for us :)

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A regular customer using a coupon isn't helping the restaurant's financials. They're hurting them. Unless they visit even more regularly than they would otherwise.

Eric Ziebold once told me, "You're probably the only person who's dined here twenty times who hasn't let me buy them dinner." I spend certainly hundreds, sometimes thousands, of dollars per year at Arrowine. Doug and Shem know I'm a regular customer, and quite often when they ring me up, they'll give me a 15% discount (which they sometimes do for their best customers) - I never, ever ask for this, and certainly never, ever expect it. All this to say that owners might be delighted that their regular customers are getting a little break in price for a change. I'm not sure it will matter if one, or two, restaurateurs chime in - one person might have Doug Rosen's attitude ("Sure! That's what it's there for! Use it!); another might have the unnamed restaurateur's attitude the night I ripped up my coupon ("Well, I guess I won't be using this," I said, followed by something of a smirk on his part for me even having one.) Same type of thing with Restaurant Week: one person's "Hell yes! Take advantage of it" is another person's "Oh my God, when is this week going to *end*?!" Wine Madness at Dino? Absolutely I take advantage of it, and often, it'll be a bottle priced in the $50-55 range which is just over the minimum. Truth is, my name's Rockwell, not Rockefeller, and chunks of $10, or $20, are indeed worth me thinking about even though I would hardly consider myself impoverished. Happy Hour ending at 7 PM and I arrive at 6:55 PM? Heck yes I'll have a look at that happy hour menu. It's often amusing how a wall-to-wall packed bar empties out after the happy hour specials end - even at high-end restaurants.

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Living Social has $20 for $10 at Eamonn's.

This surprised me. I regularly recommend Eamonn's as, hands down, the best place for fish and chips in the region. Coupons offered through LS and GRPN to the better quality spots (this one a lower cost but still high quality spot) have been fewer and further between in recent months. Interesting the Armstrongs decided to do this.

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This surprised me. I regularly recommend Eamonn's as, hands down, the best place for fish and chips in the region. Coupons offered through LS and GRPN to the better quality spots (this one a lower cost but still high quality spot) have been fewer and further between in recent months. Interesting the Armstrongs decided to do this.

I think it still is the best fish and chips in the region, but the new location may just be too large. T.N.T. is often full; Eamonn's is often empty.

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This surprised me. I regularly recommend Eamonn's as, hands down, the best place for fish and chips in the region. Coupons offered through LS and GRPN to the better quality spots (this one a lower cost but still high quality spot) have been fewer and further between in recent months. Interesting the Armstrongs decided to do this.

I was surprised to see Eamonn's too, and jumped on this one. We're close enough to do take out too, and Mr. MV can even swing by on his way home from work (the fish holds up surprisingly well).

I also look for LS coupons for Cafe Pizzaiolo/Market to Market, which seem to be offered every 3-4 months. I'd say they are better quality spots too.

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Groupon now has Groupon Reserve. Pertaining to restaurants, when you make a reservation through Groupon, a percentage of your bill is automatically discounted. No prepay, no vouchers.

From the article:

"The Reserve reservation platform gives customers a discount off their entire check without requiring pre-payment or vouchers and provides local businesses an important tool to drive traffic during slow periods by utilizing flexible pricing."

Would this change your view of using discounts like Groupon?

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Thinking about this, had lunch today & used a groupon (Genghis Grill, just realized it expired Wed.). I purchased it awhile ago, forgot about it, & just remembered to use it in time because it's geographically convenient to the friend I was having lunch with (& she had eaten there before, & didn't object). It wasn't memorable (no more shrimp or scallops on the 'build your bowl bar', the guy told me shrimp were in short supply- ha!). It was OK, lots of protein for my $10, my choice of veggies, the waiter kept my water topped off, & I tipped 25% because I felt a bit guilty about the groupon.

I've probably purchased half a dozen coupons, but usually it's not restaurants I want to eat at -I use it to try new places, but I can't really think of one that I visited after the groupon, that's enough to dissuade me. Now, other groupons...Lizzy's looking forward to the fishy pedicure at Yvonne's.

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Groupon now has Groupon Reserve. Pertaining to restaurants, when you make a reservation through Groupon, a percentage of your bill is automatically discounted. No prepay, no vouchers.

From the article:

"The Reserve reservation platform gives customers a discount off their entire check without requiring pre-payment or vouchers and provides local businesses an important tool to drive traffic during slow periods by utilizing flexible pricing."

Would this change your view of using discounts like Groupon?

This is *exactly* the business model that Savored.com (click here for the thread I started on them) used.

I will now say that Savored was trying hard, really hard, to hire me - I was on the phone with one of the founders and a vice-president, and they made me something of a reasonable offer, but I wanted equity, not just a salary, and they wouldn't bite.

Several months later, they were bought out by ... guess who?

Yep, Groupon.

And I did believe in their business model which is why I was in talks with them.

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I had *no* idea they were still in business, but ... why not? They were the pioneers for the model, and nothing has changed except the internetivity (*) of the concept.

(*) coin

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I buy the book every year, more for the car rental and merchandise discounts than restaurant discounts. However, this year's book came without a location index, so it's completely useless for restaurants anyway.

There is an associated app for iPhone and Android, with some repeated and some exclusive deals, so they have "internetivity".

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