Business Says Groupon Caused It To Close

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The owner of a Washington D.C. waffle restaurant says he was forced to close because of a Groupon deal.

"Back Alley Waffles" offered a two-for-one deal through the popular group-buying site.

Customers flooded in, but the owner says he never got his part of the money...and couldn't cover the cost of doing business.

"They take half of the money and then they hold on to your half for months before they send you a check," said Back Alley Waffles owner Craig Nelsen. "They'll come here and get the cheap waffles, next time they want to get food their going to go on Groupon see what else is going on. So it doesn't like encourage any repeat behavior."

Nelsen posted a sign on the restaurant door that has gone viral.

It reads, in part: "Grouponistas - sorry but I'd rather have my hand slammed in a car door than honor your Groupon coupons..."

According to the restaurant web site, to recoup losses, Back Alley Waffles is now charging $450 each for waffles by appointment.

Groupon responded to Nelsen's assertion via the Washington Post.

The website says it has paid out two-thirds of the restaurant's share of the revenue and that it is sad to hear about the closure.