Andrew Mason has publicly said (at Startup School and other places) that they have a 97% satisfaction rate from merchants. Groupon clones exist because there's

Andrew Mason has publicly said (at Startup School and other places) that they have a 97% satisfaction rate from merchants. Groupon clones exist because there's such a long waiting list to be featured that merchants go elsewhere while they're waiting. The fat margin Groupon charges gives the restaurant a lot of editorial and consulting about how to best structure the deal to get maximum exposure, customer satisfaction, and profitability for the merchant. There are anecdotes of unsatisfied businesses but statistically, everyone is winning for now.