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As the Restaurant Industry Adjusts to the Digital Age, Online Reviews and Ratings Sites Offer a Powerful First Impression

January 17, 2014 5:12 pm Leave your thoughts

As the Restaurant Industry Adjusts to the Digital Age, Online Reviews and Ratings Sites Offer a Powerful First Impression

Every restaurant owner knows that positive reviews will boost sales while negative reviews could spell disaster. In an age when everyone's a critic, these reviews have never carried more weight in the court of public opinion.

A pair of economists from the University of California - Berkeley published a 2012 study in the Economic Journal that showed a distinct relationship between online ratings and consumer's purchasing decisions. These researchers focused on the effects of positive ratings for 300 San Francisco area restaurants on Yelp. They discovered that a restaurant with a rating increased by just half a star - on a 1-5 scale - was much more likely to be full at peak dining times. Read more...