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Consumer Trends

New data shows restaurants are skeptical of daily deals

Four months after releasing research that indicated daily deals live up to their potential, Technomic has issued new data that shows restaurants aren’t convinced.

“Restaurants that have not used a third party online daily deal believe other forms of promotion yield a better return,” the research firm concluded from the data.

It also noted that about half (51 percent) of restaurants using daily deal services like Groupon and Living Social are pleased with the results, but fewer than half (46 percent) adjudged the return on investment to be good.

Technomic noted that 40 percent of the restaurants offering deals have used multiple programs—Groupon as well as Living Social, say. It concluded that the services have yet to foster a loyalty within the industry.

The data was far different from findings that Technomic released in June. At that time, it reported that 73 percent of the deals are purchased for restaurants where the buyer has eaten fewer than two times. The implication:  Coupons do indeed expose an establishment to new patrons.  Many restaurants worry that the majority of daily deals will be used by regular customers, thereby discounting meals that would've otherwise been purchased at full price. 

At that time, Technomic also reported that 67 percent of consumers using a daily deal will return to the issuing restaurant and pay full price, and that eight out of 10 recommend the place to friends and relatives if the experience is good.  

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