Research: Operators reveal pros and cons of daily deals

"Restaurateurs who offered Internet “daily deal” discounts were evenly split about whether or not they would run such promotions again and confirmed that the offers can cannibalize sales, according to researchers from Cornell University and Rice University," according to Nation's Restaurant News.

“Operators reported that about 40 percent of the deal purchasers were new customers, meaning that there was substantial cannibalization of existing customers,” said the researchers, who conducted an online survey of restaurateurs in late 2011 and summarized their findings in the report, “Restaurant Daily Deals: The Operator Experience.”

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