fb

ACCA SUMMER SALE 20% OFF

Get rid of the Michelin star and you’ll be a better restaurant…

Get rid of the Michelin star and you’ll be a better restaurant…

Running a successful restaurant is tough.

Whilst a good restaurant can me it look easy, there are a lot of things you need to get exactly right to be successful. Everything from the ingredients, the menu, the chef, the ambiance and the waiting staff have to be just right.

Plus don’t forget that it’s a very competitive industry with new restaurants popping up all the time.

Perhaps one of the best differentiators a restaurant can hope for is to earn the renowned Michelin star. This award it only given to the most elite of restaurants.

As with a lot of businesses that adopt Porter’s generic strategy of differentiation, creating differentiators comes at a cost.

La Lisita restaurant in the French city of Nimes is run by top chef Olivier Douert and received its first Michelin star in 2006. It has however just done something that many people would consider unthinkable.

Namely, they have voluntarily given back their Michelin star and reverted to a “standard” restaurant.

Surely this is commercial suicide?

Giving up the most prestigious award a restaurant can achieve can’t help the restaurant, can it?

In fact though they may well be better off as a result.

The restaurant has given up the star so that they can reduce their costs to a more reasonable level. There are several requirements for having a Michelin star. These include having a minimum ratio of one waiter for every five to six customers compared to a standard restaurant where the ratio is closer to one waiter for every twenty customers.

It was proving difficult for La Lisita to recover these additional costs as higher spending customers weren’t visiting as often as they were before the financial crisis so they decided to drop the star.

They are still planning on serving great food but under a slightly different model.

Could this be the first of many restaurants that obtain the Michelin star to prove that they can but then revert to a different model to make more money?

If you found this item interesting you may also like:

Share this entry

Recent articles

View All Articles
It’s all hands on deck moving from Big 4 to 4 people…
Jun 17, 2025
Title
It’s all hands on deck moving from Big 4 to 4 people…
Excerpt

When multinational companies switch auditors, it’s usually a move that signals routine rotation, cost management, or strategic realignment. […]

From whisky to wickets…
Jun 16, 2025
Title
From whisky to wickets…
Excerpt

Diageo, the global drinks giant behind brands like Guinness, Smirnoff and Johnnie Walker, is reportedly considering a sale […]

“Just Build It” – the Nike LEGO collaboration
Jun 12, 2025
Title
“Just Build It” – the Nike LEGO collaboration
Excerpt

Nike and LEGO are teaming up to launch co-branded products and experiences aimed at inspiring kids through active […]

Laziness and intelligence.
Jun 12, 2025
Title
Laziness and intelligence.
Excerpt

Whilst a lot of you won’t admit to being lazy (and I’m sure most of you aren’t in […]

The road to electric cars is full of potholes…
May 28, 2025
Title
The road to electric cars is full of potholes…
Excerpt

The electric vehicle (EV) market has seen tremendous growth in recent years, with major car manufacturers and startups […]

Is the stage set for airline pricing at the theatre?
May 26, 2025
Title
Is the stage set for airline pricing at the theatre?
Excerpt

Imagine paying £300 for a theatre ticket, only to find there’s more to pay if you want to […]

WeightWatchers files for bankruptcy as drugs take over…
May 12, 2025
Title
WeightWatchers files for bankruptcy as drugs take over…
Excerpt

Weight-loss drugs like Ozempic and Wegovy have revolutionised the weight management market, leaving companies which were once dominant […]

A whole new world: Disney’s Middle East move
May 08, 2025
Title
A whole new world: Disney’s Middle East move
Excerpt

The Walt Disney Company has announced its first-ever theme park in the Middle East, set to be built […]