Revenue models in haute cuisine: an exploratory analysis
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 havi...
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Published in | International journal of contemporary hospitality management Vol. 17; no. 4; pp. 286 - 301 |
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Main Authors | , , , |
Format | Journal Article Web Resource |
Language | English |
Published |
Bradford
Emerald Group Publishing Limited
01.06.2005
Emerald |
Subjects | |
Online Access | Get full text |
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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. |
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AbstractList | 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. 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. In-depth exploratory interviews are conducted with 20 great chefs located in France, Belgium, the UK and Switzerland having gained two or three Michelin stars over the last ten years. 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. The observations are constrained to "recently successful" restaurants, and hence may not be applicable to longer-standing restaurants. 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. 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. 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. 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. Designmethodologyapproach Indepth 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 revenuegeneration core business, full diversification and partial diversification. The reasoning behind the choice of strategy varies between two and threestar 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 limitationsimplications The observations are constrained to recently successful restaurants, and hence may not be applicable to longerstanding 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 middleoftheroad approach seems inferior in any case. Originalityvalue 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 revenuegenerating 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. |
Author | Nlemvo, Frédéric Johnson, Colin Chantrain, Diego Surlemont, Bernard |
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Snippet | 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... 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... 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... 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.... 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... |
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SubjectTerms | Business & economic sciences Business models Chefs Diversification Growth models Income Interviews Leadership Market strategy Product management Profitability Questionnaires Ratings & rankings Restaurants Revenue Sciences économiques & de gestion Strategy & innovation Stratégie & innovation Studies Television programming Tourism, Leisure and Hospitality Management |
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Title | Revenue models in haute cuisine: an exploratory analysis |
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