Revenue models in haute cuisine: an exploratory analysis

Abstract

Purpose -The aim of this paper to shed light on the strategies adopted by chefs and to identify the most successful in terms of Michelin rating and profitability. Design/methodology/approach -In-depth exploratory interviews with 20 great chefs located in France, Belgium, the UK and Switzerland having gained two or three Michelin stars over the last ten years. Findings -Chefs use three different strategies for revenue-generation: core business, full diversification and partial diversification. The reasoning behind the choice of strategy varies between two-and three-star restaurants. The first strategy seems to lead to higher Michelin star ratings, and strategy, the second seems superior in terms of profitability. The third strategy yields inferior results, but is less risky.Research limitations/implications -The observations are constrained to "recently successful" restaurants, and hence may not be applicable to longer-standing restaurants. Practical implications -Concentrating on the core business leads to higher star rating, but lower profitability. Full diversification increases profitability but can jeopardize Michelin rating. The middle-of-the-road approach seems inferior in any case. Originality/value -To this day, little research has been conducted on the way in which great chefs having two or three stars in the famed Michelin Red Guide run their businesses. In particular, very little is known about their revenue-generating strategies: what options are available and which revenue models are the "best". This paper is exploratory in nature and aims to inform further research about luxury restaurants.

Superstar Effects in Deluxe Gastronomy – An Empirical Analysis of Value Creation in German Quality Restaurants

“…In Germany, there is no chef who is present on screen, and who belongs to the highest rating category. This insight supports a suggestion by Surlemont et al (2005, p. 296): chefs who get the highest rating concentrate on their core business and do not diversify. Being under enormous pressure to continuously ensure highest quality, they cannot “waste time” on fostering a TV presence.…”

Chef’s Competency as a Key Element in Food Tourism Success: A Literature Review

“…Also, a chef must be able to endorse culinary products that he cooks to be known by consumers (Luoh & Lo, 2012). The chef's business skills are needed to increase restaurant income (Surlemont et al, 2005). The importance of business skills of a chef encourages HRD to facilitate business management training activities for chefs (Laneyrie et al, 2018).…”

Management kakovosti v prehrambenem turizmu: Zagotavljanje kakovosti ponudbe in lojalnosti gostov

“…Tematiko Michelinovih restavracij so z različnih vidikov sicer preučili številni raziskovalci: Johnsonidr. (2005) z vidika tipologije Michelinovih restavracij v Evropi; Lane (2010) z antropološkega vidika; Ottenbacher in Harrington (2007) z vidika kariernega razvoja vrhunskih kuharjev; Pratten (2003) ter Surlemont, Chantrain, Nlemvo in Johnson (2005) z vidika prihodkovnega menedžmenta. Ocenjevanje restavracij za pridobitev Michelinove zvezdice in uvrstitev v vodnik za gurmanske popotnike (fr.…”