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by jcnnghm
5754 days ago
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If you are losing money on each transaction, you can't make it up in volume, you can only lose money faster. Your gross margin would have to be 75% to make money with a groupon promotion, without accounting for any of your fixed costs. The only thing that might be able to touch that is some alcohol sales, assuming you could control employee theft and shrinkage, which you can't. Let us also not forget that a restaurant isn't infinitely scalable. If your tables are full of people using coupons, you can't just keep packing them in, eventually people are going to go somewhere else, and the guy that is going to leave isn't the one that already paid. |
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