# ` of unique customers 23^ 28:46 Meals / year / customer 5 . 3 5. 5 3. 8 Total spend / meal / customer ( 5) 24. 88 18. 78 14. 85 *6 spend on food *6

Segment profitability Calculation

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` of unique customers 23^ 28:46 Meals / year / customer 5 . 3 5. 5 3. 8 Total spend / meal / customer ( 5) 24. 88 18. 78 14. 85 *6 spend on food *6
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Q1 What is the margin (\$ dollar value) of each segment (experientials, indulgents and frugals) per customer per year for Red Lobster according to the table below?

(hint: food margin(\$)for each customer+ alcohol margin(\$)for each customer)

Q2 Which segment is the most profitable and should be target at according to results in Q1?

Q3 Calculate each segment’s total margin change (\$) if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.

Q4 Calculate the restaurant level total margin(\$)change if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.

Experientials

Indulgents

Frugals

` of unique customers23^28:46Meals / year / customer5 . 35. 53. 8Total spend / meal / customer ( 5)24. 8818. 7814. 85*6 spend on food*6 spend on alcohol*`Margin on food57%/}57 %/}*6 Margin on alcoholMargin for each Segment per customer per?? ?? ? ??? ?year ( s)Change in the number of customers2000- 1000- 10ODMargin Change in each Segment ‘s !? ? ?? ? ?? ? ?Total Restaurant LEVEL Margin Change (‘s )? ? ?

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