The Death Of Cityspree

from the something's-not-right-here dept has an article about the impending failure of Cityspree, which is apparently a company that prints out gift certificates to restaurants and sells them online. They consider this to be the perfect internet business. I’m not convinced of this. Question number 1: why can’t a restaurant just do this on their own? The main problem that Cityspree had (and the reason why many restaurants now won’t honor the gift certificates) is that they flooded the market. When everyone coming to a restaurant has the certificate, it’s no surprise the restaurant would get upset. If they did it themselves, though, they’d have control over how many went out. Second question is how in the world would you need 250 people to work at a company that does this? It seems like you could easily get by with 10.

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