Emerging Platforms

Pizza for breakfast?

Posted by Peter Platt on September 9th, 2010 at 8:41 pm

While checking my email this morning I was drawn in by today's Groupon offer...a local pizza place offering more than 50% off. I used to eat there all the time, but because of a change in my commute, I'd stopped going there. The food is great, service is fantastic, and it's really not that far out of my way. So, thanks to Groupon (and a smart marketing person at the restaurant), they'll be getting my business back - and not just for the one-time offer.

Of course, the marketer in me kicks in whenever I take advantage of this type of deal and I pay special attention to the process. The thing that surprised me most: as of 7am this morning, 75 people had already taken advantage of the offer. So my little local pizza joint sold a lot of pizza this morning, while their doors were still closed, probably before the lunch crew came in to start making the dough.

Groupon clearly provided value for this small community effort, but it applies to larger businesses as well. Recently I received a Groupon offer from a large national retailer (the type that has a store in every major mall).  So here was an offer that would encourage local mall traffic (and purchases) with national reach (through a series of localized efforts).

So what's this all mean? This type of offering, and clearly Groupon is not alone in the space, has some real value for both local business as well as the big players. If it's not part of your strategy now, you should be paying attention and looking at how this could potentially help your business. By the way, it's now late afternoon and the number of buyers is over 250...not a bad day for a pizza shop!

5 Responses to “Pizza for breakfast?”

  1. Nance Goyette Duncan says:

    I couldn't agree with you more, Petey. As a recent receiver of Groupon—its value and local push is even easy for someone who is constantly on the go, and forgets to rip out that great A.N. coupon in the penny saver. One question... who writes those ads? Speaking of pizza for breakfast.... has anyone tried Clawson's Breakfast Pizza? It truly is food for the soul.

  2. So...what time did you actually get the pizza?

  3. I agree that Groupon can be an excellent promotion for SOME business. But I also have known retail (both restaurant & non food) business getting bowled over by the "Groupon Phenomenon" Most business might not realize the loss of profit that can come from an ill planned promotion, the cut that these sites take off the little remaining profit, and how it can affect their turnaround times & quality of deliverables or strain on the current staff. One person I know ended up working 80 hour weeks to help cover the influx of business that only spent the minimal amount and these consumers were not likely to turn into returning profitable ROI. Every Groupon that was redeemed they took a loss on. Don't get me wrong, I love Groupon and use it myself but I think businesses should be approach with caution-just like any other media spend- to make sure it will be the right fit.

    • Peter Platt says:

      Very true - it's critical that you plan out your promotion and understand the impact. While Groupon's promotional focus is the opportunity to attract new customers, any significant discount opportunity will always impact your regular customer base. So as always, as a marketer you need to make sure you fully understand the the costs and return potential before you put it out there.

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