Groupon is based in Chicago, so the Tribune does more than a few stories about the impact it is having on small businesses in the Chicago area. According to the article their are 500,000 subscribers in the chicago area - so the response some "small" businesses are getting is to big and at times crushing them.
Here is an article from today
Growing with Groupon may be tricky for businesses
Surge of customers can hurt bottom line or alienate regulars
The Groupon wave can unsettle even a merchant with large capacity. Blo, a 3-year-old beauty salon on West Armitage in Chicago, netted 4,000 new clients in one day in an April promotion, said owner Elizabeth Floersheimer.
The phones were tied up for 10 days after the deal, which cost $40 for $110 in services, and the salon is booked through September.
Unable to get through, Groupon holders groused about the experience on the online review site Yelp, damaging the salon's reputation among the same tech-savvy constituency it sought to reach. Hoping to assuage core customers, the salon posted a message on its Web site instructing regulars to send inquiries via e-mail.
"We never could have been prepared as far as the phone lines go," Floersheimer said. "We have a strong following, and our regulars couldn't get through."