[ryana]

Groupon may not have lived up to the hype, but they're still putting millions of people in restaurants each year. And part of the reason they didn't live up to the hype is because their deals are a lot better for the merchant now (70% of revenue going to the merchant instead of 50%).

There is a definitely model and need for filling empty seats at a restaurant. It just has to be done profitably over the variable costs of food (significant) and additional labor (much less significant).

[tsunamifury]

Yes and open table is already doing it. They reward repeat customers who pay full price (their point system) not try to generate new customers who are a poor fit for long term business by discounting their meals.

Discounts are for getting rid of excess merchandise, not acquiring new customers.