Quote:
Originally Posted by Rusty van Reddick
Ah, that was you! You're welcome for sure.
Interesting discussion on chowhound the other day: Sushi Motto had a $20 for $50 of sushi deal on Deal of the Day (red flag deals' groupon type site) and they sold more than 4000. Some of us are concerned how a resto can survive this sort of "success." They are selling more than $200,000 worth of food for $80,000- and a chunk of that $80,000 goes to red flag. How do restos make money with these things? Drinks?
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From what I understand, the mark-up in food costs is routinely over 200% (especially in sushi and Viet places), so even 60% off, they'll be making something.
Additionally, I'm sure they're banking on many people spending more than the minimum amount of the coupon and will again regain some of their 'loss'. Also, there's 4000 people that may have otherwise gone to another restaurant and if Sushi Motto performs, it's 4000 people that will hopefully go back (and also tell their friends). A loss-leader sort of strategy.
Lastly, there's lazy people like me that ignore the groupon and red flag deals but pay attention to the local food boards (chow, beyond, here). I didn't buy one of the coupons, but due to the discussions online, it's very likely that I'll be to Sushi Motto in the next week, (foolishly) paying full price
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