The business behind Michelin stars - Ashdale Business Consulting

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)