{"id":43,"date":"2016-10-19T14:59:12","date_gmt":"2016-10-19T14:59:12","guid":{"rendered":"http:\/\/reformingretail.com\/?p=43"},"modified":"2019-01-23T05:49:42","modified_gmt":"2019-01-23T11:49:42","slug":"restaurants-butts-in-seats-fallacy","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2016\/10\/19\/restaurants-butts-in-seats-fallacy\/","title":{"rendered":"Restaurant’s “Butts in Seats” Fallacy"},"content":{"rendered":"

In 2008 the US economy crashed. People were freaking out\u2026 especially brick and mortar business owners. As sales dipped, local merchants flirted with the most dangerous marketing device ever created: the daily deal. The daily deal, while innocuous on the surface, was probably the most detrimental action any business owner could have taken. Think about the math behind it: a third party sells your product, which normally costs $100, for $50. THEN, the third party takes half of that ($25). The business owner earns $25 for a $100 worth of product. Keep in mind the average business owner ekes a 5% margin on average. In order to reach breakeven on the marketing, the customer who bought that $50 daily deal would need to return \u2013 at full price- a staggering 14 times!\u00a0You start to think about how many times the average person eats out per month, the kinds of customers who are interested in 50% off, and these metrics look ever worse for business owners. The chart below shows a diner who uses a Groupon on the first visit, and how the restaurant's balance sheet looks over the next 14 visits.<\/p>

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In 2008 the US economy crashed. People were freaking out\u2026 especially brick and mortar business owners. As sales dipped, local merchants flirted with the most dangerous marketing device ever created: the daily deal. The daily deal, while innocuous on the surface, was probably the most detrimental action any business owner could have taken. Think about […]<\/p>\n","protected":false},"author":1,"featured_media":2405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[],"class_list":["post-43","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-merchants"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p81nA2-H","jetpack_featured_media_url":"https:\/\/i0.wp.com\/reformingretail.com\/wp-content\/uploads\/2016\/10\/a1-3.png?fit=800%2C108&ssl=1","_links":{"self":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/43","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/comments?post=43"}],"version-history":[{"count":3,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/43\/revisions"}],"predecessor-version":[{"id":4027,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/43\/revisions\/4027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/media\/2405"}],"wp:attachment":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/categories?post=43"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/tags?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}