Michelin Guide's Origin Story

The Michelin Guide began as a marketing strategy for the Michelin tire company in 1889. The goal was to encourage car ownership by promoting travel and making it easier for car owners to find hotels and restaurants. Restaurants were added to the guide in 1920, with the first star awarded in 1926. The well-known 3-star ranking system was established in 1936.

• The Guide’s expansion beyond France didn't happen until 2005, when it was introduced to America, followed by Japan in 2007.
• Michelin Guide currently covers over 3,543 restaurants in 41 countries with the most located in France (639), Japan (547) and Italy (395).
• The majority of Michelin restaurants (>80%) have 1 star, with 2 stars awarded for top-notch service and experience and 3 stars for the best dining experiences in the world.
• While the Michelin Guide is financially unprofitable, it is considered a powerful marketing tool that increases brand equity and cultural cachet for Michelin, particularly in its home country of France.

The Michelin Guide Business Model

The Michelin Guide generates revenue through several streams:

• Guide Sales: Michelin sells millions of physical guides annually, with sales of over 100,000 on the first day of launch in Japan in 2007.
• Digital Properties: The Michelin Guide has a website and mobile applications.
• Events: Michelin hosts events related to food and dining.
• Licensing: Michelin licenses its ranking system to other platforms, such as TripAdvisor.
• Tourism Board Fees: Since the mid-2010s, Michelin has charged tourism boards in various countries for coverage, with fees ranging from $90,000 per year for individual cities in Texas to $600,000 for a statewide guide in California.

The Power of Michelin's Status Signalling

The Michelin Guide's true power lies in its ability to signal quality and prestige in the restaurant industry. It establishes a benchmark for "uncertainty in the assessment of quality" which benefits both the Michelin brand and the restaurants it reviews.

• A study by Bocconi University found that restaurants in Washington, DC, increased their prices and changed menu language to reflect higher quality and prestige after the Michelin Guide's introduction to the city.
• Michelin-starred restaurants often experience significant increases in business, with some chefs reporting as much as a 100% increase in revenue after earning 3 stars.
• The Michelin Guide's influence on the restaurant industry has led to a focus on consistency and perfection, with chefs facing immense pressure to maintain their star ratings.

Chefs' Pushback Against the Michelin System

Despite its prestige, the Michelin Guide has faced criticism from chefs, who argue that the system can be too rigid and stifling to creativity. Some chefs have returned their Michelin stars, citing the pressures of maintaining consistency and the fear of losing stars.

• South Korean chef Eo Yun-gwong sued Michelin to remove stars, complaining about the pressure and uncertainty of the review process.
• Spanish chef Julio Biosca returned his star because he wanted to simplify his menu.
• Belgian chef Frederick Dhooge returned a star to focus on simpler dishes, demonstrating the rigidity of the system's definition of "star-worthy" food.
• Celebrity chef Gordon Ramsay expressed sadness at losing a star, comparing it to losing a girlfriend.
• Tragically, French chef Bernard Loiseau committed suicide in 2003, with many believing it was partly due to fear of losing a Michelin star.
• Renowned chef Anthony Bourdain criticized the Michelin system for stifling creativity, saying it encouraged chefs to focus on consistency over innovation.
• René Redzepi, a former world's top chef, closed his 3-Michelin-starred restaurant Noma in 2016, stating that success had stifled his creativity.

How Michelin Guide Can Remain Relevant

With the rise of social media platforms like TikTok and Instagram, the Michelin Guide faces competition for influencing food trends and dining recommendations.

• While platforms like TikTok can be a source of dining recommendations, Michelin Guide is still considered the benchmark for high-quality, consistent dining experiences.
• Michelin Guide can maintain its relevance by continuing to focus on its core mission of identifying and recommending the best restaurants in the world, while adapting its content and delivery methods to reach new audiences.
• Michelin Guide can continue to expand into new markets, ensuring its review process is rigorous and maintains the high standards that have earned it global prestige.

Author's Michelin Experience and Final Thoughts

The author shares their experience at Michelin-starred restaurants in Vienna and Dubrovnik, highlighting the value of the Michelin Guide's recommendations in expanding global travel and dining experiences. They argue that Michelin Guide has a delicate balance to maintain, ensuring that its star rating system remains prestigious while strategically expanding into new markets.

• The author advocates for increasing the number of Michelin inspectors to maintain consistency and expand coverage into new markets.
• Ultimately, the Michelin Guide's relevance rests on its ability to maintain the high quality of its review process and continue to serve as a trusted guide for discerning diners seeking exceptional dining experiences.