Groupon’s IPO roadshow pitch is revving into high-gear this week. But CEO Andrew Mason and the rest of the crew might want to first convince its own clients of the company’s benefits.
Seviche, the merchant prominently featured in Groupon Inc’s now-trundling IPO roadshow, is no longer keen on jumping on the daily deals bandwagon. Worse, one of its general managers is mildly contesting Mason’s account of the benefits of their promotion run in 2010.
Hap Cohan, general manager of the Louisville, Kentucky-based restaurant, said on Tuesday the Groupon was in fact run by previous management (the restaurant brought in new investors over the past year). The new owners do not immediately see the benefits of a Groupon, at least not now.
Groupon launched its IPO marketing effort this week and the company posted a presentation by Mason and other executives online . Early in that presentation, Mason introduced Seviche along with a slide entitled “Why Seviche Loves Groupon.”
He said Groupon ran a daily deal for Seviche in February 2010, offering a $60 voucher for $25 to about 13,000 Groupon subscribers in the Louisville area and about 800 bought it. That deal generated roughly $20 of gross profit per customer, Mason said. And it didn’t include repeat business from the exposure, he added.