When you put a bunch of small-business owners in a room together, it doesn't take long before the conversation often turns to Groupon.

That's what happened earlier this week at a holiday party thrown by the Macklind Business District in the Southampton neighborhood. The short, informal agenda included the debut of new colorful brochures as well as tips on using social media to better promote their businesses.

Then during the schmoozing hour over wine, pizza and toasted ravioli, retailers began swapping Groupon horror — and success — stories.

"My staff despises it," Michele Coen-Racanelli with Onesto Pizza and Trattoria, told some business owners who asked her how the Groupon she recently offered had gone so far.

For starters, some customers end up tipping only $3 for a $75 meal because they only calculate the tip on the reduced total, she said. On top of that, many people ask to sub out items — two beers, for example, instead of a half carafe of wine as was stated in the deal.

"It's very frustrating," she said, especially when the restaurant is packed and has an hour-plus wait on the weekends.

Pete Manzo, the 'sausage king" of Manzo Sausage Kitchen & Market, recounted incredulously how some vegetarians have come in trying to redeem the Groupon he offered earlier this year on sausage and meatballs.

"They were like, "I don't eat meat,'" he said, his eyes bulging. "Well, then you chose the wrong Groupon."

Those customers also asked if they could use the Groupon on other products. But Manzo said he specifically chose to offer the Groupon on sausage and meatballs because those are higher-margin products.

"So you don't lose as much," he said. "You're still going to lose, but you're losing less."

And then there are the customers who have walked in asking for exactly $12 worth of sausage (because his Groupon was $6 for $12).

"Well, how are you supposed to do that when they're in links?" he said. "I'm not going to cut a link. Then they're like, 'Well, I didn't bring my wallet.'"

But despite all of the irritations, Manzo said his Groupon experience has overall been pretty positive. He decided to offer it at a time when business was slow. It did what he hoped it would do — it brought in a lot of new customers who had never heard of the store before, many of whom ended up buying more than the Groupon amount. And some of his satisfied customers ended up writing positive online reviews.

Now the Groupon folks have been calling, asking him to offer another deal. But he wants to wait awhile to see how many of those Groupon customers from the first time around come back.

And while the Groupon at Onesto has been a hassle in many ways, Coen-Racanelli said it did help her get a quick one-time infusion of cash right before the holidays. She is using the money to fund a mailer for a related catering company she is trying to jumpstart.

"But will we do it again?" she asked. "I vote no, honestly."

DROPPING ADAM?

A little more than a year after acquiring it, Kellwood is now reported to be planning to drop Adam, an upscale contemporary sportswear line.

Women's Wear Daily reported this week that the Town and Country-based apparel company has decided no longer to fund the brand and is exploring various options, including selling it.

Kellwood acquired Adam, the brainchild of designer Adam Lippes, in August 2010. It was one of the company's first major acquisitions as it embarked upon a brand-buying spree of luxury, designer brands. Terms of the deal were not disclosed at the time.

"Adam is the first one we've nailed," Michael Kramer, Kellwood's chief executive at the time, told the Post-Dispatch then. "Hopefully this is the first of many to come."

Kellwood followed that acquisition with others such as Rebecca Taylor and Scotch & Soda. It has also launched some new in-house brands such as Lamb & Flag.

But Kramer recently left Kellwood to become chief operating officer at J.C. Penney. So it remains to be seen whether any other of his decisions will continue to live on even after his departure.