Deals site Groupon is back in the headlines again, and this time they've messed with the wrong waffle shop owner.
Craig Nelsen is the owner of Back Alley Waffles, a restaurant in Washington, D.C. He blamed Groupon for putting him out of business within just three months after opening.
Groupon makes deals with restaurants to
distribute coupons. Customers buy coupons from the site, Groupon sends
the restaurant a check, and deal-crazy customers flock to the
restaurant, bringing up business and increasing profits overall.
After about a month, Groupon issues the first of three payments to the
business by check, which can take up to 10 days to "process" before it gets send via snail mail. This slow-mo process takes about a month per installment.
Writing on Back Alley Waffles site, Nelson says he went out of business because Groupon took too long to remit to him the money his Groupon earned:
Due to the shocking business practices of an obscenity known as "Groupon"—contemptible even by the nearly non-existent standards of the modern corporation—I can no longer afford to sell waffles for $8.00 and still pay, for example, my employees something north of a subsistence wage.
So while Back Alley Waffles was honoring all these deals, they weren't making enough money to pay for their supplies or their employees. And apparently, he isn't too fond about Groupon users either.
And this certainly isn't the first restaurant to complain about Groupon. Last year, one restaurant owner called using the deals site "the worst decision [she] ever made."