Restaurant Data: How Customer Reviews on Yelp.com Are Making An Impact

6 Sep

Restaurant data is one of our passions and when we came across the Harvard Business Review article titled, “Reviews, Reputation, and Revenue: The Case of Yelp.com” written by Michael Luca, we got really excited. This article goes into detail about how Yelp.com reviews are impacting restaurants.

It’s a pretty long article, so we’ve put together a summary of the key data points that we found fascinating:

“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 revenue share as Yelp penetration has increased.
4. Consistent with standard learning models, consumer response is larger when ratings contain more information.
5. However, consumers also react more strongly to information that is more visible, suggesting that the way information is presented matters.”

Click here for the full article:

About CHD Expert:
CHD Expert is the worldwide leader in collecting, managing and analyzing data for the Away-from-Home Global Foodservice Market. For more than 10 years CHD Expert has been dedicated to support Foodservice channel members in providing a global vision and an in-depth understanding of the industry (in Europe, North America and Asia Pacific).

Our objective is to support food service providers in their sales and marketing strategies by providing the most comprehensive and accurate foodservice census, housing operator intelligence for more than 4 million operators worldwide.

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