Online daily deals get mixed reviews
Oct. 7, 2011
by Meat&Poultry Staff
CHICAGO – When it comes to the effectiveness of online daily deals, such as Groupon, Technomic finds independent restaurants have mixed views on them. Results of the firm’s recent survey of restaurants that participated in a third-party daily deal indicate 51 percent were pleased with the result and 46 percent thought the deal provided a good return on investment.
Research also indicated that more than 40 percent of restaurants have offered daily deals with multiple providers, indicating a lack of loyalty to any single source. Restaurants not using a third-party online daily deal believe other forms of promotion yield a better return. They also claim a lower commission rate would encourage them to participate.
These findings complement Technomic's Daily Deal Watch — Restaurant Diner Use, Attitudes and Intentions study.
“In this challenging environment, restaurants are more actively and objectively assessing which promotional tactics work best,” said Bob Goldin, executive vice president. “Restaurants are open to testing new tactics, including online daily deals, but require solid proof of performance before making any of them a permanent part of their marketing mix.”