The business behind Michelin stars
Michelin is probably best known as the company that bestows stars on restaurants to signify their excellence.
Gordon Ramsay, awarding the Michelin stars for UK & Ireland 2019, described the event last week as the “Oscars of the restaurant industry”.
Receiving a star isn’t only an industry accolade – it can also be a boost to the business.
The late Joël Robuchon, the world’s most Michelin star-decorated chef, claimed the stars were financially transformative.
“With one Michelin star, you get about 20% more business. Two stars, you do about 40% more business, and with three stars, you’ll do about 100% more business,” he told Food & Wine magazine last year.
But according to the founders of Ellory in east London, their mark-up on receiving a first star was even higher.
“Business went up by over a third,” says Ed Thaw, who received the award just 11 months after opening.
And yet, in a testament to how tough the restaurant industry can be, Ellory closed after only two and half years – despite having retained the star a year later.
The restaurant only turned a profit in three months – and those were “random” months.
Click here to read more (Source: BBC News)