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USAPEEC ASEAN

photo: Liao Fan Hong Kong Soya Sauce Chicken Rice stall that received a Michelin star

The Michelin star is a prestigious rating awarded to eateries based on the Michelin’s Red Guide1. To earn a Michelin star, eateries have to excel in serving quality ingredients, possess unmatched skills in cooking, display high level of creativity, priced reasonably, and maintain consistency3.

Obtaining a Michelin star often results in securing more business opportunities. Those awarded with two stars and above can expect crowds from locals and tourists4. In Singapore, hawker stall Liao Fan Hong Kong Soya Sauce Chicken Rice, opens for 17 hours daily to cater to overwhelming number of customers ever since it received their first Michelin star5. One Michelin star Peranakan restaurant Candlenut, also noted an increase in dining reservations within one day of receiving the prestige star6. The increase in number of customers contributes to an approximate 20 to 30 per cent growth in revenue for the restaurant7.

However, some eateries may also experience the “Michelin Curse”. Owners of eateries who aim to secure the prestigious award would revamp their establishments into a high-end eatery, resulting in higher operational costs8. Landlords capitalize on the Michelin star claim by raising rents, forcing eateries to increase their prices to customers9. For instance, the rent for a Cantonese dessert shop Kai Kai in Hong Kong, doubled after it received one Michelin star in 201510. Similarly, another Hong Kong eatery Cheung Hing Kee, experienced a 30 per cent increase in rent after being featured in the Michelin’s Hong Kong Street Food Guide. Eventually, it was forced to close and later reopened at a new outlet in Tsim Sha Tsui in 201611.

Another notable impact of the “Michelin Curse” is the pressure of living up to high expectations12. In 2015, Vanity Fair reported that famous chefs are giving back their restaurant’s Michelin stars to avoid the burden of maintaining the status13. Losing a star is not only psychologically devastating to these chefs; it also reduces sales by 50 per cent14. It deters chefs from updating their menus since consistency is needed to maintain the rating15. As a result, offerings to diners remain stagnant and chefs lose their freedom to create new and innovative dishes.

However, earning a Michelin star is still an esteemed professional goal for many chefs around the world. On the other hand, studies showed that 88 per cent of consumers in Southeast Asia place trust in word-of-mouth recommendations16. To elaborate, having good reviews on websites such as Yelp, TripAdvisor and Hungrygowhere, can boost reputation, build credibility, and ultimately, increase sales.

References
1 Ketchupp. (2016). 9 facts about Michelin Star & the Red guide you never knew. [online] Available at: https://blog.ketchupp.in/9-facts-about-michelin-star-the-red-guide-you-never-knew/
2 Ketchupp. (2016). 9 facts about Michelin Star & the Red guide you never knew. [online] Available at: https://blog.ketchupp.in/9-facts-about-michelin-star-the-red-guide-you-never-knew/
3 Crain’s. (2016). How much do Michelin stars mean today?[online] Available at: http://www.chicagobusiness.com/article/20161105/ISSUE01/
311059993/how-much-do-michelin-stars-mean-today

4 Today. (2016). Michelin star a double-edged sword for hawkers. [online] Available at: http://www.todayonline.com/lifestyle/food/michelin-
star-double-edged-sword-hawkers

5 Business Times. (2016). New normal after Michelin. [online] Available at: http://www.businesstimes.com.sg/lifestyle/food-drink/new-normal-after-michelin
6 Foodiehub. (2016). A Guide to Michelin’s Three-Star Restaurants. [online] Available at: http://www.foodiehub.tv/features/essential-eats/a-guide-to-michelin%E2%80%99s-three-star-restaurants
7 The Middle Ground. (2016). Michelin Star for your favourite restaurant? Don’t celebrate yet. [online] Available at: http://themiddleground.sg/2016/07/17/happens-favourite-restaurant-wins-michelin-star/
8 The Middle Ground. (2016). Michelin Star for your favourite restaurant? Don’t celebrate yet. [online] Available at: http://themiddleground.sg/2016/07/17/happens-favourite-restaurant-wins-michelin-star/
9 Coconuts Hongkong. (2015). Michelin-tipped Kai Kai Dessert forced to move after 120 percent rent hike. [online] Available at: http://hongkong.coconuts.co/2015/12/08/michelin-tipped-kai-kai-dessert-forced-move-after-120-percent-rent-hike
10 Food & Drink. (2016). How Hong Kong restaurateurs handle the ‘curse’ of the Michelin star. [online] Available at: http://www.scmp.com/lifestyle/food-drink/article/1941031/how-hong-kong-restaurateurs-handle-curse-michelin-star
11 The Middle Ground. (2016). Michelin Star for your favourite restaurant? Don’t celebrate yet. [online] Available at: http://themiddleground.sg/2016/07/17/happens-favourite-restaurant-wins-michelin-star/
12 Vanity Fair. (2015). Why Some of the World’s Most Famous Chefs Don’t Want a Michelin Star. [online] Available at: http://www.vanityfair.com/culture/2015/09/top-chefs-michelin-stars
13 Fortune. (2014). The curse of the Michelin-star restaurant rating. [online] Available at: http://fortune.com/2014/12/11/michelin-star-restaurants-down-side/
14 The Middle Ground. (2016). Michelin Star for your favourite restaurant? Don’t celebrate yet. [online] Available at: http://themiddleground.sg/2016/07/17/happens-favourite-restaurant-wins-michelin-star/
15 Nielsen. (2015). WORD-OF-MOUTH RECOMMENDATIONS REMAIN THE MOST CREDIBLE SOURCE OF ADVERTISING AMONG SOUTHEAST ASIAN CONSUMERS. [online] Available at: http://www.nielsen.com/sg/en/press-room/2015/word-of-mouth-recommendations-remain-the-most-credible-source-of-advertising-among-southeast-asian-consumers.html