This study builds on the theory of parallel distributed processing, Thaler's exchange theory, and the trust theory to extend our existing knowledge on the location-based coupons literature in the retail fast food sector. Based on several location-based coupons provided by fast food chains, a mock coupon was designed and an online survey was conducted on a sample of 228 Canadians. Attitude toward location-based advertising is found to be significantly determined by consumers’ trust and perception of control. Attitude toward location-based coupons, however, is driven by monetary benefits as well as convenience and hedonic motives. Attitude toward location-based coupons is significantly predicted by attitude toward location-based advertising. Both of them have a significant impact on consumers’ intention of using location-based coupons. The study provides strong evidence supporting Thaler's exchange theory according to which customers are motivated by monetary benefits as well as convenience and hedonic aspects.