A Michelin star may be the ultimate fine-dining accolade, but recently updated research in the Strategic Management Journal suggests restaurants "might be better off remaining starless," said The Economist. University College London School of Management researchers tracked highly reviewed New York City restaurants that opened between 2000 and 2014. They found those that earned a Michelin star were more likely to close than those that didn't, even allowing for location, price and type of cuisine. By the end of 2019, 40% of the restaurants awarded Michelin stars from 2005 to 2014 had closed. Fame, it seems, "comes at a price."
Star-shaped target Being in the limelight "puts a star-shaped target" on restaurants' backs, said The Economist. Receiving Michelin star status "intensified bargaining problems with landlords, suppliers and employees," according to researcher Daniel Sands, all of which push up costs. This, combined with "heightened consumer expectations," makes staying in business tougher.
Five of the "highest-awarded fine-dining restaurants" in Berlin have closed in the past year, said Euronews. Still reeling from the pandemic, restaurants were "hit by soaring inflation," with no choice but to pass on those higher costs to customers. People's willingness to spend has "significantly changed," said Sebastian Frank, the head chef at double-Michelin-starred restaurant Horváth.
From fine dining to food truck For some in the culinary world, stars have begun to "seem more of a burden than a blessing," said CNN, and several chefs have even "handed back their Michelin status." In 2018, Spanish chef Dani García announced the closure of his eponymous restaurant in Andalusia just 22 days after it received a third Michelin star — the "shortest triple-Michelin-star period" in the world, said Eater. García told staff that he doubted he could "continue to devote the focus required" to maintain the stars. "This achievement could undermine my freedom to do new things," he said to Eater.
There's a financial as well as personal advantage to such a move too. Announcing the closure of a restaurant during the "height of its acclaim" can yield even more headlines and good publicity for a chef's next venture. |