The phone would not stop ringing Friday at the Sweet Endings Bakeshop in Jamesville, N.Y., with customers calling for discounted cupcakes.

The spike in business came from Groupon, a website that posts discount offerings for local businesses. Groupon launched in November 2008 in Chicago and has been popping up in cities throughout the United States since. The company recently released a Syracuse chapter on Oct. 29. There are now more than 125 North American locations hosting Groupon, according to company spokesman Mark Desky. The company offers 200 deals per day in the United States and 400 per day worldwide.

Groupon releases coupons to local businesses via Twitter, Facebook or e-mail to the website’s subscribers. The promotions are made valid only when a specific number of purchasers is reached, so the company encourages sharing the deals with friends and family. Users can either print the coupons or show them to retailers on their iPhone or Android phone.

Sweet Endings’ Groupon promotion offered 50 percent off of the regularly priced $18 dozen of standard cupcakes, and sales were consequently higher than usual, said Mary Chappell, owner of Sweet Endings. Chappell said the promotion was very successful and said she thinks taking part in the service was worth it.

Chappell originally heard about Groupon from her brother. Shortly after, she received a call from Groupon, inviting her to participate. She decided to accept the offer after doing a bit of research.

‘They give us some suggestions about what to make the coupon for, and obviously we have to give a reasonable discount or people aren’t going to be intrigued by it. In the past, cupcakes have done very well for other bakeries. It was a natural fit, so we went with that,’ Chappell said.

Strong Hearts Café, a local vegan restaurant, was the first local business to be featured for Groupon’s Syracuse launch. With the purchase of a $5 coupon, customers could receive $10 worth of food at the restaurant on Groupon’s opening day.

‘College towns and cities with a young workforce are among our top performers, given that they attract consumers new to an area looking to explore their cities in new and exciting ways,’ Desky said.

Colin Thorn, a graduate public relations student, learned about Groupon when it was mentioned in one of his news reporting lectures on graphically based social networking.

‘It’s a good way for local businesses to get in contact with its customers and advertise at a minimal cost,’ Thorn said. ‘It’s easy because you just get an e-mail saying what is offered. Everybody wins if you’re interested in what they’re offering.’

Despite its growth among businesses, Groupon has yet to grab onto local social networking communities. GrouponSyracuse, the official Twitter account of the area’s promotions, only had 27 followers on Twitter as of Monday night, many of which were not Syracuse University students.

‘I get so many e-mails every day, and I’m still learning the area,’ Thorn said. ‘If I was a permanent resident and knew of the businesses, I could definitely see myself using it.’

Thorn said he has yet to use Groupon but thinks it has potential to become popular among SU students.

There is also a tangible reward for local businesses that participate in the program.

‘Our merchants love the exposure and steady stream of new customers we deliver,’ Desky said.

In August of this year, Forbes Magazine called Groupon the ‘fastest growing company ever,’ but it may be too soon to tell how quickly it will catch on among SU students.

Thorn said he hasn’t used Groupon but that it has potential to become popular the longer it sticks around.

‘People need an incentive to do something,’ he said. ‘And Groupon has a tangible incentive in offering discounts.’

acsmit05@syr.edu

Published on November 15, 2010 at 12:00 pm