Wednesday, 23 November 2011

Groupon Deal Makes Bakery Mearly Go Bust

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Cake shop owner Rachel Brown from Woodley, UK, was forced to bake 8,500 orders for her specialty cupcakes after they were featured on discount website Groupon. Mrs Brown just wanted to drum up a bit of extra trade for her tiny company but realised she had bitten more off than she could chew when 8,500 customers took up her offer, forcing her to increase production from 100 cakes a month to a staggering 102,000.

The unexpected popularity of the deal meant she had to bring in 25 agency staff and the cost wiped out her entire year's profit and nearly made her go bust.

2 comment(s):

Jimmy said...

This has happened to several businesses in New York City.

melissa said...

Business owners do have the option on Groupon to limit the number of coupons they'll allow.