Can't see how this is true, whether or not someone at Groupon said it was. How can a business who places a deal at a large discount and is paying Groupon a sign

Can't see how this is true, whether or not someone at Groupon said it was. How can a business who places a deal at a large discount and is paying Groupon a significant cut be making money on the deal itself? Is the redemption rate of these deals so low that it makes up for the price cut + fee?