Restaurant Unit Economics: Calculating Profit Correctly
5 min read
2 sections
Unit economics shows how much you earn from a single customer. Key metrics: LTV, CAC, average check, order frequency.
Table of Contents
LTV β Customer Lifetime Value
LTV = Average Check Γ Order Frequency Γ Customer Lifespan. Example: $10 Γ 2 orders/mo Γ 12 mo = $240 LTV.
CAC and Payback
CAC = Marketing Costs / Number of New Customers. Healthy ratio: LTV/CAC > 3.
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