Interesting post below. I think the challenge -- and I'm being Captain Obvious here -- which businesses that participate in a daily deal service face is converting first-time customers into regulars. I've heard that Phipps Conservancy in Pittsburgh offered visitors using Groupon a discount on memberships. My wife and I went to Omni Bedford Springs on a Groupon, and they treated us so well that we will happily return and pay full price. It's certainly a risk that not every business can afford to take.
MASSolutions: Online Daily Deals Bad for Business: "The TechCrunch article Why I Want Google Offers and the Entire Daily Deals Business to Die is worth the read for entrepreneurs and business..."