Here's a quick nugget I think you'll appreciate and use whenever your restaurant
tenants try to dismiss the impact of Yelp. Michael Luca, Associate Professor of
Business Administration at Harvard Business School conducted a study entitled,
Reviews, Reputation and Revenue: The Case of Yelp.com. In it, he presents
three findings about the impact of consumer reviews on the restaurant industry:
1. A one-star increase in Yelp rating leads to a 5-9 percent increase in revenue
2. This effect is driven by independent restaurants; ratings do not affect restaurants
with chain affiliation
3. Chain restaurants have declined in market share as Yelp penetration has increased
This is powerful information for your independent restaurants! Use it to help them understand
the opportunity that exists for them to meet and beat chain competition by providing exceptional
food, service and quality AND carefully managing their online reputations!