Heres How Michelin Stars Actually Affect themichelin restaurant Restaurant Business

Shaun Rankin, chef of the one MichelinstarredOrmerin Jersey, U.K., explainedto The Staff Canteenjust how important it is to understand your specific market instead of wishing on your star to bring in customers. We are not located in the middle of London, so we dont have a million population; we have a population of , in Jersey, he said. You need to be really careful regarding your business model and your market. You can have a star, amazing, but if youve got an empty restaurant, youre not going to be successful in business, then youre going to close.

TheMichelin guidehas long been the decto authority on the worlds best dining. But as gourmet culture reaches peak mainstream popularity and old culinary hierarchies remain in flux, how does gaining, losing and gasp renouncing a star actually affect a restaurants business?

Since being awarded three Michelin stars for his Las Vegas namesake restaurant housed in the MGM, Robuchons formula of starstoincreased patronage has proven true. When we received the third Michelin star in this restaurant here in Las Vegas, the restaurant was instantly recognized, and since then the restaurant is always full, he said.

As pointed out byFortune, while some restaurants have reported an upswing in business after the addition of a star, researchers at the Bordeaux Business Schoolhave foundthat in order to maintain the perceived standards of the Michelin guide, restaurants often feel the need to invest significantly more in things like service and dcor, sometimes straining the business itself.  Whats more, according to a study published inCornell Hospitality Quarterly, nearly half of the sample group of two and threeMichelinstarred restaurants from across Europe were found to not be a profit, regardless of their ranking.

There is, however, a large difference between being housed in a worldclass casino in a city known for people balling out and running your restaurant in a smaller town or the countryside. The market is different, and a star isnt necessarily going to offer the same staying power to your business.

Meaning Getting caught up in the star game can be a sharp doubleedged sword if owners dont navigate the win with a sound market understanding.

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Historically, receiving a single Michelin star has led to an increase in customers for restaurants. Take chef John Fraser, whose New York restaurantNixjoined the Michelin star rankings this year and whose website features Proud new owner of a Michelin star as a central banner. He said that receiving a Michelin star has drastically increased business at both Nix and Dovetail. An added bonus? With the stars, I do feel now we are able to retain a higher level of staff than before.

Just last week,Boath Housein the Scottish Highlands, which has held a Michelin star for ten years, spoke out about wanting to be stripped of their star because of the economicpressures it placed on the restaurant. Now, theyre switching up gears with a r menu. Owners Don and Wendy Matheson toldThe Telegraphthat while the decision will likely result in the loss of the star, they needed to relieve the economic pressure.

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Receiving a Michelin star doesnt always guarantee instant success. In some cases, a restaurants business suffers.

And if you thought that not a profitwitha star was bad enough, what about what happens afterlosing a star? According to a report inIrish Independent, when chef Kevin Thorntons restaurant in the Fitzwilliam Hotel in Dublin, Ireland lost its star, profits declined percent, eventually forcing the restaurant to close in late October .

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With each additional star awarded, restaurants often see an incremental increase in business. Master of the Michelinstar game Joël Robuchon, who holds the title of being awarded most Michelin stars in the world, broke it down for us like this With one Michelin star, you get about percent more business. Two stars, you do about percent more business, and with three stars, youll do about percent more business. So from a business point … you can see the influence of the Michelin guide.

Then, there are those dont want anything to do with stars because of how they inherently influence the restaurant. WhileEater illustratesa longstanding tradition of chefs from Marco Pierre White to the more recent Sbastien Bras giving back their stars for reasons ranging from wanting to have fun with food again to not wanting to compete any longer, the choice of refusing a star may also be a viable business tactic for some beyond the desire for more artistic freedom.

Purposefully stepping away from maintaining or receiving a star in the first place just might be the trick for more restaurants burdened by financial pressures and thats perfectly fine. After all, we live in a time where more and more a gram from the latest hot chicken spot can hold just as much social currency as the eslishmentacclaimed fourhour dgustation menu.

The economics of running a restaurant to Michelin standards had meant their eslishment had run at a loss for years and they were only able to stay in business because of revenue from Boath Houses guest rooms, reportedThe Telegraph.

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