Before you think that your pithy, self-referential online review will bring down (“I said THREE CHERRIES in my Appletini — this place haz Worst. Service. Evar.”) or completely make (“They offered this delight! It’s called sushi! I’ve never had it before! Tasty!!!) your local restaurant, a Harvard Business School student has some facts for you.
Writer Michael Luca looked at how Yelp.com reviews affect the bottom line in Seattle-area restaurants. It turns out that unverified rantings really do matter. From the abstract:
- A one-star increase picks up revenue 5 to 9 percent.
- Unless you’re a chain restaurant.
- Where Yelp penetration increases, chains lose market share.
Read the entire article here. Then make your comments on it that are sure to influence other readers below.
Shout-out to Eater Seattle for bringing it to our attention.