Groupon eyes restaurants with nationwide POS offering

By Alistair Barr

SAN FRANCISCO, Oct 10 (Reuters) - Groupon Inclaunched a point-of-sale service called Breadcrumb across theUnited States on Wednesday as the world's largest daily dealcompany tries to win more restaurants as clients.

Breadcrumb is a sales, order management and reporting systemfor restaurants, bars and cafes that runs on Apple Inc's

iPad. It was designed a start-up founded by SethHarris. Groupon acquired the business in May.

Since that deal, Breadcrumb has been offered as a test toabout 100 restaurants, bars and cafes in New York. On Wednesday,the company launched the service nationwide.

Groupon is a pioneer in daily deals, which are heavilydiscounted online offers for local services. Rampant growth hasslowed in recent quarters. However, Groupon is expanding inother areas, hoping to become an operating system for localcommerce, as Chief Executive Andrew Mason says.

Groupon launched a product sales business last year calledGroupon Goods and recently unveiled a payments service for localmerchants.

Last month, the company bought restaurant reservationstartup Savored, sparking speculation the company may step upcompetition with OpenTable Inc , a leader in the sector.

"Restaurants, bars and cafes are such an important verticalfor Groupon," Breadcrumb's Harris said. "In the next couple ofquarters, we will roll out our service nationwide and get asmany restaurants running on Breadcrumb as possible."

Groupon is not planning to integrate Savored with theBreadcrumb system soon. However, Harris said it was "an amazingopportunity to integrate our products down the road."

Breadcrumb charges $99 a month for restaurants to run itsservice on one iPad. That increases to $199 for two iPadterminals, $299 for five and $399 per month for up to 10terminals.

Breadcrumb sells iPads at cost to ease set up, butrestaurants can buy or use their own iPads too, Harris said.

Groupon is planning to offer its new payments servicethrough the Breadcrumb system. However, restaurants are free touse their existing payments services, Harris added.

(Reporting By Alistair Barr; Editing by Richard Chang)

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