Groupon question – do you guys think I got a fair deal or a lousy deal?

[skeeter]

Family redeemed a groupon at a restaurant last weekend. I paid $15 for the groupon and it had a value of $30. I read the fine print on the groupon and didn’t notice any issues. The only fine print was “dine-in only” and “must order at least one food item.” No problem there.

After being seated at the table, I placed the groupon print-out on the table. The server welcomed us and blah blah blah. The server commented that they had certain entrees priced at $9.95 because it was between 3 and 5. (Entrees regularly $13 to $16-ish.) She then noticed the groupon and commented that the special prices were not available with the groupon. She politely explained we could get the $9.95 entrees if we paid cash (and presumably use the groupon another day) or we could use the groupon but pay the full price for the entrees. The groupon was expiring soon so we did the latter.

I’m sorta torn on whether this practice of excluding specials from the groupon redemption was fair. On one hand, we bought a groupon for discounted food. I guess that means the customer should expect to receive no other discounts. On the other hand, there was nothing in the groupon that said “no specials.” So in a way I feel like my groupon should have had a value of $30 just as if I was paying that $30 in cash. What do you guys think?

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[wakeflood]

Tough call, Skeets. I tend to favor the restaurant’s policies cuz they’re usually running so close to break-even that I tend to give any place I want to see stay in business the benefit of the doubt.

But I do think Groupon should at least allow for the possibility that the participating restaurant might have something like you encountered going on – but then again, even something seemingly as innocuous as the standard “cannot be combined with any other discounts” verbiage can seem limiting to a perspective user. And getting butts in the seats is what it’s all about. (Remember those Dine Out coupon books? Those always had several disclaimers on the tickets – usually with some significant restrictions.)

I guess if forced to choose, I’d think that since the concept of “coupon” is in the name, I feel like I should assume that it functions more like that, than getting $30 of product for $15 straight up, which is more like winning a auction.

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[skeeter]

For further clarification, this is the exact text of the “fine print” on this groupon:

“The Fine Print

Expires 120 days after purchase.

Limit 1 per person, may buy 1 additional as a gift. Limit 1 per table, 2 for tables of 4 or more. Dine-in only. Must purchase 1 food item. Must use promotional value in 1 visit.”

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[minion]

Skeeter – If you do not feel you got a fair deal, I would contact groupon. I’ve done this in the past and received a credit via groupon.

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[2 Much Whine]

I say you should go back to the restaurant and order some of the $9.95 specials and see how you like them. Then decide which experience you enjoyed more and that’s your winner. It’s hard to call a half price meal a “lousy deal” unless you didn’t enjoy it.

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[WSB]

Just a note from a small-business standpoint:

Groupons and other daily deals are a TERRIBLE deal for the restaurauteur/businessperson and while the daily-deals business has tanked in a big way as a result (a few years ago it was such a sizzling craze that even publications like ours were told that if we didn’t move all our advertising to daily deals we’d be doomed, we chose to risk that possibility and stay clear of being part of such transactions!), I’m honestly surprised it’s still around at all. And that restaurants and other businesses are still thinking it’s a viable way to market. They should certainly live up to the terms under which you purchased them, and if they didn’t, you should absolutely fight to get it made right, but if you’re looking for context… just thought I’d throw that in.

In their heyday, businesses got addicted to them as sort of a payday loan – they’d get some cash up front, but then later the customers would show up expecting to get what they were promised, and the establishments would have long since run out of the meager advance compensation.

TR

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[miws]

skeeter, I’m going to have to side with the restaurant on this too.

I general, restaurants and other businesses will have have the caveat “….of equal or lesser value”, or “Not to be combined with any other offers”, and such. So, I would say if anything, contact Groupon about this, if you wish to pursue it, rather than just chalking it up to experience. I would only hope Groupon doesn’t hassle the restaurant over it.

I’ve never used Groupon, and really doubt that I ever will, because of what TR has said above, and in the past. IMHO, the details TR related above, as far as moving to Daily Deals, smells of extortion and bullying.

My opinion on this also comes from stories I’ve heard from employees in the Hospitality Industry and such, that have had to deal with (understandably) unhappy clients, that were deceived by the go-between companies that give the customer a great deal on hotel rooms and such, and in which the benefit to the hotel is to supposedly fill up rooms.

Mike

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[Blackcat119]

We used a Groupon and had a similar experience. We went to a popular restaurant during happy hour and sat in the bar. We ordered 2 happy hour menu items (as appetizers) and 2 drinks to start, then 2 full dinner items. We attempted to use the Groupon (same deal $15 for a $30 value) and we were told we couldn’t since we ordered happy hour items. We pointed out that there was no fine print detailing this. The waiter said it was their policy and Groupon must have over looked printing it.

Now our full price items, two meals and drinks, together totaled over the $30 but we were told we weren’t allowed any discounted items in order to use a Groupon. We asked to split the check and my date would pay for the happy hour items separately, they declined. Finally, on our check we were charge standard price for our appetizers even though we received the smaller happy hour size portions. Ridiculous. We felt like we were lured in by a deal and ended up getting overcharged for the food items we did receive; we haven’t bought a Groupon since.

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[Smitty]

I am not a Groupon fan, but have used it in the past as a marketing tool.

The owner gets to proof the coupon and has to sign off on it.

We are fortunate enough to have a legal department (which of course a small business may not have).

I would hold the restaurant accountable. Groupon should have the signed off final proof.

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[Jeannie]

I agree with Tracy (or Patrick?) about Groupon and its ilk. I was on the Living Social email list a couple of years ago, and the 99.9% of the deals s-cked. As for Groupon, seems like most of the offers are for activities in which I have no interest or restaurants that don’t appeal to me in the least.

Let’s see what Groupon’s site is offering today. Hmmm…infrared body wraps, pole-dancing classes, yoga, at-home teeth whitening, yoga, liprotronic B-12 injections, colon hydrotherapy, yoga, powdered peanut butter, hookah variety pack, yoga.

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[wakeflood]

I just saw one of those Restaurant Detective shows that caught some employees using back-of-receipt 1/2 price coupons they would insert into a cash transaction and steal the value of the coupon when they rang it up.

The manager wasn’t asking why they were getting many times more coupons than previously because he was out surfing(!) during the shift and didn’t want to call attention to his own inattention so he just turned a blind eye.

All of which and the above thread reminds me of the old addage: How do you make a small fortune with a restaurant?

Start with a big one.

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[skeeter]

Blackcat – your experience was much worse than mine. In my experience I’d say it’s a gray area. In a gray area I’d generally favor the customer – but that’s just me. In your example I think you were mistreated. If a restaurant doesn’t want a groupon to work with any other promotion – whether it is happy hour, senior discount, early-bird special, or Cinco De Mayo, then the groupon should state so.

This is now the third time (out of about 5 times) that presenting a groupon has made me feel like I’ve been put at a disadvantage over a non-groupon customer. Restaurants issue groupons to get new customers. Annoying these customers is completely defeating the purpose. I now get the feeling that groupons are for struggling restaurants, not thriving restaurants. Is issuing a groupon the first step toward closing a restaurant? The business model seems very flawed.

Blackcat I don’t know you but I believe your story. You have every right to be bothered by how that transaction went down.

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[KBear]

It should be obvious to restaurants by now that the (potential) value of Groupon is in the repeat business, not the initial transaction. Why do they participate at all if they’re not going to honor the deal?

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