Several well known stores and restaurants announced their closings this week. The one which most surprised us was Casa Gallardo, the first Mexican restaurant in the St. Louis area and a fixture in Fairview Heights for decades. We went there many times although not in recent years.
Then the Monarch, a fine dining restaurant in Maplewood and one which consistently drew praise from St Louis food writers. Seems the Monarch's inside space was too large for the number of diners. They pay for square footage and the customers were no longer fillilng it it due, the owners say, to competition from the Groupon and other coupon deals other restaurants were offering.
Then there's Sears. The granddaddy of big retail stores is closing the Crestwood location. Looks like the Sears in Fairview Heights is safe for now.
Wouldn't be surprised to see either Sears or JC Penney's not survive the recession. Both have outdated marketing strategies.
Posted by: Ron | February 25, 2012 at 08:24 AM
Groupons have certainly become a mixed bag for businesses. We sold a $50 for $25 Groupon in late 2009. Using the standard offer, we got half the $25.00; so we received $12.50 for $50.00 of food and beverage. Not many places operate on a 25% food cost or less; so it was definitely a 'loss leader'. You hope that they spend significantly more than the $50, and/or like the establishment well enuf that they return. We sold over 600 and about 15% were never redeemed. So all-in-all we might have broken even.
What it did do was increase restaurant sales volume during a slow time and helped servers with more hours and tips. And we did it largely because our primary competition was doing it.
They remain very popular, but we probably will not be doing it again anytime soon.
Posted by: Rand | February 25, 2012 at 02:47 PM
I always wondered what Groupon etc were really doing to restaurants and how restaurants could offer such deals. We've never used them and now I probably never will
Posted by: Diane | February 25, 2012 at 06:07 PM