Dining deals customers love make some restaurateurs sick

Every weekend, Jenna Corman Mandel tries at least two different restaurants. Her appetite for new discoveries is insatiable, as is her taste for discounts.

In fact, the 27-year-old communications executive for a nonprofit has become an avid user of promotional services, which offer as much as 90% off restaurant tabs. “I'm definitely addicted to these deals,” Ms. Mandel says.

Meet the new breed of diners. They are hungry for bargains and are unlikely to go where they can't get them. They are helping feed a cottage industry of companies that offer access to cheap eats. No fewer than 15 websites providing deep discounts have been launched over the past couple of years, including Groupon, VillageVines and BlackboardEats. OpenTable, the 12-year-old online reservation company, began offering deals in August.

Discount programs have been around for decades. Rewards Network, which offers rebates of 5% to 15% on meals, started 26 years ago. But the proliferation of the latest offers, driven by the recession and Internet access, is causing heartburn for restaurant owners, who are divided over whether they are a blessing or a curse.

“A lot of them are like mosquitoes on your back,” says Tracy Nieporent, a partner in Myriad Restaurant Group, owner of Nobu, Tribeca Grill and others. “They suck your blood and give you a little sting, and they all perceive us as a way to make money.”

Restaurateurs are concerned that discounting cuts into their slim profit margin and cheapens their brand. But they acknowledge that the practice has the benefit of bringing in a large number of customers, particularly during slow periods. Additionally, they see its advantage as a form of alternative advertising.