

Groupon++ Meets Spotify - chose your deal - ghshephard
http://www.bordersrewardsperks.com/localdeals/restaurants

======
ghshephard
Could someone in the hospitality industry _please_ explain the economics
behind offering $25 worth of food for $7? And this is _after_ the price went
up - I picked up about twenty of these this morning at $3.

While I realize that Borders is liquidating these, the fact that they believe
$3-$7 is the appropriate value, suggests to me that they paid around groupon
prices ($12) to the restaurants.

My only guess is that the restaurants are playing a bit of ponzi scheme with
these coupons - using the revenue from new sales to pay for the food they are
serving to previous coupon purchasers, and hoping that breakage gets them
ahead of the game.

It all makes me rather nervous as to what will happen in the food industry
should the music stop, and the restaurants get got with no new coupons to sell
to finance the old ones.

