Restaurant Unit Economics: Calculate Profit Correctly

Unit economics shows how much you earn per customer. Key metrics: LTV (lifetime value), CAC (acquisition cost), average check, order frequency.

LTV — Customer Lifetime Value

LTV = Average Check × Order Frequency × Customer Lifespan. Example: $10 check × 2 orders/month × 12 months = $240 LTV.

CAC and Payback

CAC = Marketing Costs / New Customers. Healthy ratio: LTV/CAC > 3. Meaning for every $1 spent on acquisition, you earn at least $3.