A restaurant owner is evaluating whether to run a Groupon deal and must quantify and interpret the financial impact under several demand and pricing assumptions.

List the business and financial factors a restaurant should evaluate before partnering with Groupon. Given 20 tables/day, $30 spend/table, variable cost 40% of revenue, fixed cost $100/day, compute daily profit. If a Groupon voucher worth $15 is treated as $30 spend and Groupon keeps 40% commission, what minimum spend per voucher table is needed to break even on a marginal basis? Based on the above calculation, would you run the deal? Why? Now assume 25 tables/day, of which 10 use Groupon; average spend is $36, variable cost still 40%, fixed cost $100, voucher value $15, commission 40%. Compute total daily profit. Explain why profit can decrease even though both table count and spend increase. Would you still partner with Groupon under the new scenario? Justify. Suggest concrete tactics to raise profitability if the deal must run.

Set up revenue, variable cost, voucher cost, commission, and fixed cost equations; compare profits across scenarios and reason qualitatively about demand cannibalization and cost structure.

Capital One Data Scientist interview question: Evaluate Groupon's Impact on Restaurant's Profitability and Strategy. {"blocks": [{"key": "2a76f7db", "text": "Scenario", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {...