AU MA Social Media

A class blog about social media.

Could apps be bad for small businesses?

Posted by Kristiana C on August 6, 2014

I’m sure you all remember when a fantastic Groupon deal overworked a bakery to the point of bankruptcy back in 2011. This is why they started setting a limit on the number of deals that could be redeemed.

But guys, I think I played a part in bankrupting a restaurant in my college town.

We’ve all heard of takeout/delivery apps, like EatStreet, GrubHub, and Eat24.  You may use them when you’re too lazy to call, to easily pay with a credit card, or in our case, because they have awesome online coupons.

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Long story short: New cafe opens up in town. Overportioned food for ridiculously cheap prices. Coupon code for 2 dollars off any order. Orders placed for one or 2 items at a time to make things even cheaper by me and many, many, friends. Cafe closes its doors a couple months later.

Of course, restaurants fail all the time, but we couldn’t help but feel guilty.

Could coupon codes on these apps be a real problem for businesses just trying to get on their feet? Should new businesses sign up for these kinds of partnerships?

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