Since launching in 2008, Groupon, the online discount coupon site, has become a major force in the retail world, spawning numerous imitators and infuriating some small restaurant owners who feel squeezed by Groupon's hefty 50% commission. One cafe owner in Oregon had to dip into her personal savings to make payroll during the month she agreed to a Groupon partnership that left her hemorrhaging money. But today NPR finds a Brooklyn restaurateur who was NOT burned by the cheapskate magnet.
Hilda Hampar at Corner Burger in Park Slope charges $9.25 for a hamburger, and at that price she was seeing a lot of empty tables. But when she agreed to a Groupon deal, the joint got so full there were customers waiting outside for a deal that got them $18 dollars' worth of Corner Burger food for nine bucks. If they ordered nothing else, Hampar got just $4.50. Apparently, she drew enough people who ordered more and she was happy with the results—when Google's new coupon venture approached her, she agreed to try another offer, with the hopes that she'll find new repeat customers.
NPR attributes Groupon's success to the power of haggling, which makes the prices of things more flexible. Others, like Boston restaurateur Joanne Chang, say Groupon is a predatory vulture. "These companies are making money off of restaurants that are nervous or low on cash and presenting it in a way that makes it sound like such an amazing deal for everyone," Chang tells the Boston Globe. "In fact, restaurants are getting a fraction of what they need to actually make any money. And then these companies walk away with a nice check."
