Positive Yelp Ratings Can Boost a Restaurant’s Nightly Reservations by 19%


Parody “hipster” checkins all you want, but they can actually help boost small businesses. This is not only augmented reality, but hyperlocal, too.

Customer reviews travel far in the age of tweets and mobile check-ins. As more foodies come to rely on word-of-mouth reviews, Yelp’s system of ratings can make or break a restaurant.

 

Economists at the University of California, Berkeley published the results of a study, examining the effects of Yelp’s online ratings in this month’s Economic Journal. The study shows a slight half-star improvement in ratings can increase a restaurant’s business during peak dining hours by 19%.

 

Berkeley professors Michael Anderson and Jeremy Magruder found that “Yelp ratings affect both customer flows and the probability of booking a reservation.” The researchers compared the digital word-of-mouth reviews on Yelp of 328 San Francisco eateries with the frequency of nightly reservations at each establishment.

 

via Positive Yelp Ratings Can Boost a Restaurant’s Nightly Reservations by 19%.

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