Below 4 Stars, Your Diners Starve
We here at ReviewTrackers know the impact reviews can have on a restaurant, but we wanted to know exactly how many customers would outright refuse to eat at an established restaurant with an average 3-star review across the major user-generated review websites. So, we went out and asked over 500 internet users of various backgrounds, age 25-50 year olds, and conducted over the course of 3 weeks:
Would you eat at a restaurant that had a 3-star review on a review website?
33 percent of frequent restaurant-goers stated that they would never eat at a restaurant with an average 3-star review on online review websites, such as Yelp, Google and Facebook.
The graphic above utilizes data from an additional study conducted by Berkeley Researchers on the impact of reviews and a Harvard Business School study by Michael Luca.
Why 3 stars?
We chose 3 stars because 67 percent of all Yelp Reviews are 4 or 5-Star reviews. This can be interpreted a number of different ways, but the bottom line is that 67 percent of all Yelp pages don’t have anything to worry about. If you’re one of the remaining percentage, this statistic should perk your ears. Most businesses cannot afford to operate at 2/3 capacity.
Chris Campbell, founder and CEO of ReviewTrackers, also says, “A half-star improvement on Yelp’s 5-star rating makes it 30 to 49 percent more likely that a restaurant will sell out seats during peak hours. I can’t think of a single restaurant that doesn’t want a 30 percent increase in sellouts.”
It seems we have entered an age when customers can quickly become online critics, forcing restaurants to deal with Yelpers – or reviewers on TripAdvisor, Google+, Facebook, etc – who may be impossible to please and too quick to rant.
Online Reviews have proven to affect sales. Incorporating reviews as a regular feature of digital channels can help you attract more people, generate more leads, and give a business more visibility, as a recent report on AdWeek stated. It seems the more reviews a restaurant has, the greater the likelihood of a higher overall rating. An increase of 8 to 100 reviews can result in an increase in your natural search traffic through search engines such as Google.