Should Restaurants Be Using Group Buying Sites?

Opinions and perspectives can be mixed, but generally, many restaurants have jumped on the daily deal site bandwagon to provide their current and potential new clientele with meal deals. Deal sites such as Groupon, Living Social, Kijiji Daily Deals and locally based businesses like Swarm Jam and Smart Betty, allow businesses to provide daily offers to the public. These bargains are available to subscribers based on their location and they change on a daily basis. These deals can be anything from 50% off an entire meal purchase to discounted two-can-dine options. These sites operate through the power of group buying. Each daily deal will become active as long as the number of purchases reaches a certain pre-determined quota. Various methods of promotion such as email, website, social media platforms (Facebook & Twitter) and even mobile apps, provide subscribers with daily deal notifications. Each day these sites offer a new featured deal that is purchased online directly through their websites or mobile apps. Once you have purchased the deal, your voucher/coupon can either be printed or presented via your mobile device at the time of use.

These group buying sites are mutually beneficial to all parties involved in the sense that both the business and customer reap the advantages from the daily deal. It’s an especially unique opportunity for new, small or unadvertised businesses because it allows them to promote their restaurants and persuade new clientele to try their offerings by providing them with a deal that’s hard to turn down. Not all businesses are marketing or social media savvy, so these sites are able to do all of the promoting and advertising, as well as create the media ‘buzz’ needed to sell your deals. Additionally, when you decide to work with daily deal sites, you gain access to their mailing list and members in your particular local market that you could not otherwise obtain on your own. Any restaurant knows that they are only as strong as their customer base. Obtaining new patrons, as well as showing appreciation to their existing ones, is extremely vital to their existence.

Considering that working with these sites is commission based, you want to be certain that you make a positive return on your investment. In order to do so, there are some things to be aware of before you decide to pursue. You must be able to:
1. Turn as many new customers into return patrons.
2. Create a positive experience for customers so it can elicit the spread of positive reviews to others (word of mouth).
3. Handle the increased volume of customers while continually providing the same high level of superior service.
4. Continue to provide your regular and loyal customers with the same level of service they are used to.

Keeping in mind the combination of today’s consumer who frequents restaurants and the low recession-induced spending power, these deals meet the needs of the general public. Individuals and families on a budget or those simply looking to save on their frequent dining habits are given an opportunity to save significantly. Deal sites also make committing to trying a new establishment a lot less risky and therefore reduces the amount of post-purchase dissonance. There is no doubt that a demand for these deal site offerings exists so the response and traffic that a restaurant will receive through participating is promising.

Whether you are a new or established business in need of advertising and a new audience, deal sites might be the answer for you as long as you take into consideration the risks involved and be prepared to overcome them.