Originally Posted by
iahphx
Sometimes I felt like I was taking advantage of the restaurant when I got a better than 50% discount, and I wondered how it could possibly make sense to offer that deal. It probably didn't make sense! Now, if you can't get better than a 50% discount, perhaps "better" restaurants will participate.
From an accounting perspective, the restaurant probably doesn't actually "lose" money. Usual COGS (cost of goods sold), i.e., the "raw material" in restaurants is below 50%, labor and utilities are sunk costs. So, probably no (or small) actual out-of-pocket loss.
They allow Restaurant.com to sell the certificates (as I understand it, the restaurant gets no part of what you pay for the certificate) as advertising, and may even charge the "face value" to advertising for accounting purposes.
I agree that, like all advertising "bargains", the value varies depending on what the customer prises and what the restaurant provides. Some may find value, some may not.