In the competitive daily deals space, San Francisco-based Munch On Me is adding a twist to the old group-buying model. Its hope: that it can deliver repeat customers to restaurants that daily deals giants like Groupon can’t.
At its core, Munch on Me provides daily deals, much like Groupon or LivingSocial. However, it has two major distinctions. First, the startup only focuses on food. And second, the daily deals are for individual dishes, not entire restaurants.
The result, Munch on Me’s founders argue, is a more dedicated and consistent customer. Co-founder Jason Wang says users of Munch on Me come back more frequently because they are looking for more dishes to try.
“Our users are different users,” Wang told Mashable. “They’re people who want to experience new food.”
On the flip side, restaurants that are tired of the daily deal model may find Munch on Me to be a more enticing option. This is because Munch on Me’s core userbase consists of foodies, rather than bargain hunters. These are the type of people who are more likely to become repeat customers.
The startup, which is backed by the Y Combinator startup accelerator and seed fund, has been testing its platform in San Francisco and Los Angeles. On Tuesday, it expanded its daily deals to San Diego and Seattle, with Palo Alto, New York and Chicago coming soon. The company also redesigned and relaunched its website to look more like a restaurant menu.
Thanks to Groupon, daily deals have become a multi-billion-dollar phenomenon. That phenomenon is fueling Groupon’s upcoming IPO. However, businesses are getting tired of daily deal programs that aren’t giving them new regular customers, leaving Groupon’s future in doubt.
Perhaps Munch on Me’s approach to the space — targeting foodies instead of bargain hunters — can reverse that trend. The company will have to prove it can deliver new customers to restaurants if it hopes to thrive.
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