In our last post, we presented an introduction to Customer Lifetime Value (CLV). Here, we'll take a deeper dive into how CLV is actually modeled and calculated. Understanding the concepts behind CLV can help you use it properly.
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Customer lifetime value (CLV) can have a dramatic effect on your restaurant's financial health. Focusing on CLV, instead of looking just at revenue and cost breakdowns, provides a unique perspective on ways to drive success.
So, what are some ways to increase lifetime value?
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Back of House
Now that you know how hiring mistakes can have a negative impact on your business, let's dive into the back-of-house first!
Proper restaurant staffing within the back-of-house team is vital to a restaurant's success -- there's a good reason why so many owners also run their own kitchens. Not only does the food have to be excellent, it also has to be consistently-prepared in a timely manner. The kitchen has to withstand peak hours and dig out of the weeds night after night. It's notoriously a high-stress environment, so managing restaurant staff for the back-of-house should be a top level priority.
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As of May 5th, 2017, the US FDA will require certain restaurants and food service establishments to provide calorie counts on menus, and in-depth nutritional information upon request. We've noticed some confusion and misconceptions around the new requirements. Here we'll provide clarification around key concepts and requirements for restaurant owners/managers and walk through some of the questions we're most frequently hearing.
For more information, we recommend heading over to the FDA Industry Guidance.
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You use the finest ingredients. You've secured a premier location. The menu is spot-on. Your branding and marketing is on point. You account for food and labor costs, and profits are all but assured.
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