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Atlanta
Atlanta
The online discount debate
(2011-04-18)
Restaurants are one type of business that uses online discount services like Scoutmob and Groupon. These coupons can be accessed via mobile devices such as cell phones.
(WABE) - Restaurants are one type of business that uses online discount services like Scoutmob and Groupon. However, some restaurants say they don't always results in more profits.

Some businesses have seen the benefits.

Fritti, a restaurant in Atlanta's Inman Park neighborhood, told the Atlanta Business Chronicle Scoutmob has increased their business by 50% on some days.

For others, the jury is still out. Some restaurants say customers only spend enough to use the coupon.

Atlanta-based Scoutmob says it's up to the restaurants to turn discount-using customers into repeat business.

"Ultimately, we're driving these consumers to their business in a short period of time," said Scoutmob co-founder Michael Tavani. "Then, it's on them to win them over."

Scoutmob started in three cities in January 2010. Since then, Tavani says some partnering merchants have turned first-time customers into repeat diners.

"They're happy with that trade off," said Tavani.

The success has led to Scoutmob expanding its list of cities to 13. In addition to Atlanta, New York and San Francisco, the company will offer deals in Austin, Boston, Chicago, Dallas, Denver, Los Angeles, Nashville, Portland, Seattle and Washington, D.C.
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