Austin Groupon this weekend is offering a deal for Emerald Restaurant: $60 for a $175 fixed price meal for two. Well, Groupon does that all the time. Except I’ve recently read that horror story about Groupon almost bankrupting small business.
So, of course I was wondering how will the math pan out in this case. I doubt Groupon’s sales team would let that lucrative “we get 50% of the coupon price” margin slip away, so out of all sales, the Emerald restaurant will get a whopping $30. That’s a $145 lost on each of those special meals.
Would $30 be enough to cover all of the ingredients as well as some labor? I wonder.
But that’s not the only worry. As of right now 1295 groupons were sold, over $187000 went into this promotion, which is a sizable promotional budget for 6 months. That also means the restaurant needs to serve 2590 people over the couse of next 6 months. They are open for 5 hours every day (from 5 till 10pm).
Presuming that all customers will spread-out evenly (a-ha-ha-ha), there will be 432 Groupon guests a month, or 7 pairs every day. So their capacity is down by one-to-two tables. For next 6 months. Wow.
While food critics give it high marks, I wonder if I should risk it and get the groupon. And if there will be any chance to book a table there during normal hour…
p.s. And the E-bates also offers 6% cash-back for all Groupon purchases