Amy Kunkle owns Food for All Market, a specialty grocer in Philadelphia that sells food items for the very allergic. As you can imagine, it’s not the biggest store in town, it has a small, but loyal client base and up until recently, made enough to pay the bills.
Then Groupon called and convinced Ms. Kunkle that she could increase her business by offering a $15 for $30 worth of merchandise coupon. Of that amount, she would get $7.50, Groupon would get $7.50 and she’d eat the rest in the name of marketing.
What wasn’t agreed upon was a cap. Groupon sold 450 coupons and Food for All Market went belly up. In an interview with a local newspaper, Ms. Kunkle estimates that she lost nearly $10,000 on the deal.