Many restaurant owners discount the impact of Yelp. A study from the Harvard University Business School suggests that's not a great idea.
The study, Reviews, Reputation and Revenue: The Case of Yelp.com. 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 should be a powerful motivator for every independent restaurant owner! There is huge opportunity to meet and beat chain competition by providing exceptional food, service and quality AND carefully managing your online reputation!
Time to go get yourself another star!
Until next time remember,
you can do this!