Why OpenTable dumps Groupon
November 10, 2011 | Hotel Marketing
Ironically, on the same week of the Groupon IPO, OpenTable announced the cancellation of their “Spotlight” daily deal program. The offer simply did not resonate well with the majority its restaurant base, OpenTable said.
OpenTable decided that pushing the daily deals model with its restaurant customers was not a good idea given that the model:
- Can be very risky for restaurants -- businesses that typically operate on thin margins.
- May bring to restaurants a different type of diner that isn't a good match, particularly for restaurants that tend to be patronize specific demographic/socioeconomic groups.
- In many cases will not produce sales greater than the face value of the daily deal coupon.
Get the full story at Seeking Alpha
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