Some of you are likely familiar with Groupon, but, for those that aren't, let us briefly explain how it works. The service offers steep discounts on goods and services from local businesses in dozens of cities across the U.S. It entices businesses to offer these discounts by promising to drive a certain number of customers to them, thus leveraging collective buying power. This is a great way for small restaurants, coffee shops and spas to attract new customers, but sometimes it can backfire.Mission Minis, a small San Francisco bakery, found out the hard way that tons of new customers isn't necessarily a good thing. On March 30th, Groupon offered a deal -- two-dozen mini cupcakes for $11, or 50-percent off. More than 3,000 people decided to cash in on the deal. Suffice it to say that the small operation has struggled to keep up with demand. Things have gotten so bad that the bakery has been forced to put up a disclaimer on its site asking customers to give it at least 48 hours to fulfill an order. Three employees have threatened to quit, and supply runs are now bei...
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[Source: Switched]
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