> 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

> 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.