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I used to work in restaurants and have enormous respect and sympathy for anyone that tries to make a go of it. But the featured protagonist didn’t even have eno

I used to work in restaurants and have enormous respect and sympathy for anyone that tries to make a go of it. But the featured protagonist didn’t even have enough cash to last more than 30 days when even the article says that Cloud Kitchen promotes the idea that they could be profitable in 6 months. Said person then went to the press and tried to start a class action suit. I think they need to look in the mirror and recognize how woefully unprepared and likely unqualified they were to run a restaurant. And no, Cloud Kitchen doesn’t want to have people fail out that quick so they can “get the deposit.” That’s a terrible LTV to CAC ratio, and like the article says, they can’t even fill the place as it is.

bilirubin 4y ago
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rchaud 4y ago
> And no, Cloud Kitchen doesn’t want to have people fail out that quick so they can “get the deposit.” That’s a terrible LTV to CAC ratio, and like the article says, they can’t even fill the place as it is. This is the principal-agent problem at work. The CEO (principal) likely doesn't attend sales meetings, they just set the targets and lets the salespeople (agents) do their thing. Agents are incentivized to use whatever legal methods at their disposal to close a deal, and book a commission. LTV is the principal's problem, not the agent's.