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    5
    Oct
    2011
    1:38pm, EDT

    Yelp ratings really do affect the bottom line

    AP

    By Rob Neill

    Before you think that your pithy, self-referential online review will bring down (“I said THREE CHERRIES in my Appletini — this place haz Worst. Service. Evar.”)  or completely make (“They offered this delight! It’s called sushi! I’ve never had it before! Tasty!!!) your local restaurant, a Harvard Business School student has some facts for you.

    Writer Michael Luca looked at how Yelp.com reviews affect the bottom line in Seattle-area restaurants. It turns out that unverified rantings really do matter. From the abstract:

    1. A one-star increase picks up revenue 5 to 9 percent.
    2. Unless you’re a chain restaurant.
    3. Where Yelp penetration increases, chains lose market share.

    Read the entire article here. Then make your comments on it that are sure to influence other readers below.

    Shout-out to Eater Seattle for bringing it to our attention.

    Comment

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    Explore related topics: restaurants, reviews, yelp, featured, narcissists, food-inc

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Rob Neill

NBCNews.com producer who has worked on sports, entertainment, travel, news, cover and now the business desk. Yes, I realize I may have trouble keeping a job.

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