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Yeah, Groupon will just result in a bunch of deal-seekers and complainers. But it CAN have its use. Just not for profit or "exposure" or whatever. You can use it to build up your email and SMS lists.
I remember seeing some businesses repeatedly (not sure if they still do) putting up Groupons and would consistently sell thousands of them every time. Assuming they're profiting on them, they could've built up their own mailing list and send their own specials/deals/whatever, cutting out Groupon and increasing revenue by 50% on the deals they were going to send anyway. Won't work for all businesses though.
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I suggest starting with local SEO, social media (but actually use it like the social media platform it was meant to be, not like a billboard to spam stuff about your store), and reaching out to food bloggers. There are tons of them. Make sure the cake is good.. lol
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