Additionally, a reduced discount may be a blessing for restaurants because it may attract higher quality traffic instead of hordes of customers who are out only for a discount.įor restaurant in particular, Google has enhanced online deals by paying the restaurant within a few days of the beginning of the promotion, in contrast to Groupon, which spreads it out over the length of the offer. Suddenly, participating in an online discounting service is no longer a desperate marketing effort for restaurants. Surely, the improved cooperation by Google undermines Groupon and LivingSocial’s unreasonable condition that restaurants (and other merchants) offer at least a 50% discount. Foremost for restaurants, Google has communicated to Gourmet Marketing their willingness to be more flexible in price although it hasn’t yet happened in Portland (understandably as Google is trying to gain traction for the service). Let’s go through what Google brings new to the table. Google is yet to work up a head of steam, but in the summer, Google plans to expand Offers to San Francisco and New York. Certainly, many of the changes benefit restaurants while not compromising the appealing attributes that have made Groupon and LivingSocial forces of nature. Google Offers, however, doesn’t follow the Groupon formula as much as you might expect. Offers is designed to help merchants with new customer acquisition. Google is taking aim at the behemoth of online discounting, Groupon. Google Offers has made its splash into online discounting market a week ago in Portland, Oregon, testing this service.
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