The Paradox of Michelin Stars

Awarding a Michelin star to a restaurant can lead to its decline, counterintuitive as it may seem. Research published in the Strategic Management Journal discovered that restaurants recently receiving a Michelin star are statistically more likely to close than those that don't receive the accolade. The influx of recognition attracts customers who often have high expectations, forcing restaurants to elevate their offerings and increase prices. As a result, the operational pressures and elevated costs can create a perfect storm that leads restaurants to eventually shutter their doors.