Lunch Money

Your client is a meal coupon company evaluating a shift from paper coupons to a card-based system. The company wants to know whether it should make this transition from a profitability perspective, with no immediate competitive pressure but with the goal of improving customer convenience. Analyze the potential impacts on revenues and costs and advise accordingly.

Determine whether shifting to a card-based system is profitable for the meal coupon company and recommend any mitigating measures for profit changes.