I'm afraid to report that you have also abused the term "scalable". You have instead described something normally called the Marginal Product of Labour (MPL).

I'm afraid to report that you have also abused the term "scalable". You have instead described something normally called the Marginal Product of Labour (MPL). I believe the claim in the OP is to the effect that Groupon's MPL is flat or even declining and have to concur with the assessment that a high-touch business model requires huge technological support to remain competitive. Indeed your own example, McDonalds, is a prime example of this. They are not particularly notable as a human business, rather they represent a case study in very high efficiency supply chain management and process optimisation. I don't disagree that a strong and skilled front line enables enduring customer relationships and opens many doors. But the recommendation - to do so with a clear eye for efficient processes & systems - is exceedingly sound.