Evaluating Restaurants' Profitability of a Daily Deal Promotion
Although group buying daily deal sites are widely popular among consumers, it is unclear if deal promotions are profitable for merchants, especially for restaurants. The goal of this study is: (1) to investigate if restaurants make profit from a group buying deal, break even or make significant inve...
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| Format: | Article |
| Language: | English |
| Published: |
Croatian Interdisciplinary Society
2022-12-01
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| Series: | Interdisciplinary Description of Complex Systems |
| Subjects: | |
| Online Access: | https://www.indecs.eu/2022/indecs2022-pp745-762.pdf |
| _version_ | 1797958320577839104 |
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| author | Nina Angelovska |
| author_facet | Nina Angelovska |
| author_sort | Nina Angelovska |
| collection | DOAJ |
| description | Although group buying daily deal sites are widely popular among consumers, it is unclear if deal promotions are profitable for merchants, especially for restaurants. The goal of this study is: (1) to investigate if restaurants make profit from a group buying deal, break even or make significant investment and (2) to find out what factors affect deal profitability. A model for calculating the short-term profitability of restaurant's deal promotions is developed, and ten variables are identified and tested using linear regression analysis to find the once affecting deal profitability measured by return on investment. The research was conducted on the case of Grouper.mk, the leading deal platform in Macedonia. Findings show that deal promotions are profitable and effective tool for restaurants. Deal promotions that provide takeout are less profitable for restaurants, while those that offer additional discount on extra purchases are more profitable for restaurants. Employees effort to upsell have positive impact on deal profitability. However, profitability varies across restaurants category, from least profitable for fast food restaurants to most profitable for fine dining restaurants. Based on the findings of this research, recommendations for maximizing the deal profitability are provided. |
| first_indexed | 2024-04-11T00:17:17Z |
| format | Article |
| id | doaj.art-2f728ef864c347439f1f55f3170cf78b |
| institution | Directory Open Access Journal |
| issn | 1334-4684 1334-4676 |
| language | English |
| last_indexed | 2024-04-11T00:17:17Z |
| publishDate | 2022-12-01 |
| publisher | Croatian Interdisciplinary Society |
| record_format | Article |
| series | Interdisciplinary Description of Complex Systems |
| spelling | doaj.art-2f728ef864c347439f1f55f3170cf78b2023-01-08T16:35:38ZengCroatian Interdisciplinary SocietyInterdisciplinary Description of Complex Systems1334-46841334-46762022-12-0120674576210.7906/indecs.20.6.6Evaluating Restaurants' Profitability of a Daily Deal PromotionNina Angelovska0https://orcid.org/0000-0003-1040-7958Macedonian E-commerce Association, Skopje, North MacedoniaAlthough group buying daily deal sites are widely popular among consumers, it is unclear if deal promotions are profitable for merchants, especially for restaurants. The goal of this study is: (1) to investigate if restaurants make profit from a group buying deal, break even or make significant investment and (2) to find out what factors affect deal profitability. A model for calculating the short-term profitability of restaurant's deal promotions is developed, and ten variables are identified and tested using linear regression analysis to find the once affecting deal profitability measured by return on investment. The research was conducted on the case of Grouper.mk, the leading deal platform in Macedonia. Findings show that deal promotions are profitable and effective tool for restaurants. Deal promotions that provide takeout are less profitable for restaurants, while those that offer additional discount on extra purchases are more profitable for restaurants. Employees effort to upsell have positive impact on deal profitability. However, profitability varies across restaurants category, from least profitable for fast food restaurants to most profitable for fine dining restaurants. Based on the findings of this research, recommendations for maximizing the deal profitability are provided.https://www.indecs.eu/2022/indecs2022-pp745-762.pdfonline group buyingedeal group buyinge-commercereturn on investmentrestaurants |
| spellingShingle | Nina Angelovska Evaluating Restaurants' Profitability of a Daily Deal Promotion Interdisciplinary Description of Complex Systems online group buying edeal group buying e-commerce return on investment restaurants |
| title | Evaluating Restaurants' Profitability of a Daily Deal Promotion |
| title_full | Evaluating Restaurants' Profitability of a Daily Deal Promotion |
| title_fullStr | Evaluating Restaurants' Profitability of a Daily Deal Promotion |
| title_full_unstemmed | Evaluating Restaurants' Profitability of a Daily Deal Promotion |
| title_short | Evaluating Restaurants' Profitability of a Daily Deal Promotion |
| title_sort | evaluating restaurants profitability of a daily deal promotion |
| topic | online group buying edeal group buying e-commerce return on investment restaurants |
| url | https://www.indecs.eu/2022/indecs2022-pp745-762.pdf |
| work_keys_str_mv | AT ninaangelovska evaluatingrestaurantsprofitabilityofadailydealpromotion |