Ann Arbor Times

The Michelin Guide's star rating system holds significant sway in the culinary industry, with many chefs dedicating their careers to earning a star and investors viewing high ratings as markers of successful ventures. However, recent research suggests that losing a Michelin star may actually lead to better consumer reviews.

This research is led by Puneet Manchanda, a marketing professor at the University of Michigan’s Ross School of Business. Manchanda elaborates on his findings in an upcoming episode of the Business & Society podcast, produced by the Ross School of Business and Michigan News.

Manchanda explains that diners have specific expectations when visiting a Michelin-starred restaurant. "When we go to a Michelin star restaurant, we have a certain expectation. If the restaurant meets the expectation, it’s a good dining experience. If it exceeds the expectation, it’s a great dining experience," he said. Conversely, if expectations are not met, diners may leave negative reviews or choose not to return.

According to Manchanda, when a restaurant loses a star, expectations decrease. This shift allows both patrons and staff to relax, potentially leading to better performance and higher consumer ratings than expected.

Manchanda also highlights that while Michelin inspectors focus heavily on food quality—emphasizing creativity and balance—service plays a crucial role in customer satisfaction. "If you look at the reviews, service gets mentioned a lot more," he noted. "So I think one of the big insights that we get from our work is that focusing on service is super, super critical."

The Business & Society podcast episode featuring this discussion is co-produced by JT Godfrey from the Ross School of Business and Jeff Karoub from Michigan News. Jonah Brockman serves as audio engineer with editorial production by Mads Henke.

Listen to all episodes of the podcast for more insights.