Michelin stars: hard to get, even more difficult to keep

For nearly a century, the Michelin Guide has provided reviews and listings of high-quality restaurants in order to promote excellent culinary destinations that are worth exploring.

After making its first appearance in a Southeast Asian country in 2016 with Singapore, the guide has expanded its reach to other countries in the region, including Thailand in 2018 and Malaysia in 2022 before finally coming to Vietnam.

On 6 June 2023, Michelin honoured 103 restaurants and dining establishments in Hanoi and Ho Chi Minh City in four categories: Michelin Stars – one star for three restaurants in Hanoi (Hibana by Koki, Gia and Tam Vi) and one restaurant in Ho Chi Minh City (Anan Saigon), Bib Gourmand (good eats at affordable prices) for 29 establishments, Michelin Selected (recommended by Michelin) for 70 establishments, and the Michelin Guide Special Awards for three individuals.

As some of the most coveted honours in the culinary world, the Michelin stars as well as the other Michelin categories can have significant influence on the business of restaurants and dining establishments.

Being recognised by Michelin gives restaurants an edge in atttracting and retaining high-quality staff, as highly skilled and talented chefs often seek employment in Michelin-accredited establishments.

Restaurants also get immediate recognition and visibility. This helps attract the attention of customers and conveys a message about the quality and class of the restaurants.

Increased sales can be expected. According to legendary 32-Michelin-star chef Joël Robuchon, one Michelin star could lead to a 20% increase in sales, two stars could lead to a 40% increase, and three stars could double sales.

There is, however, a caveat as a sudden increase in customer numbers can pose operational and business challenges.

Moreover, profit is not always guaranteed. While Michelin-starred chefs enjoy great success in the culinary arts and are honoured as artists, a study shows that the financial success of Michelin-starred restaurants varies, with nearly half of the restaurants with two or three Michelin stars across Europe being unprofitable regardless of their class.

While earning a Michelin star is hard, keeping it can prove to be even more difficult.

Restaurants that have earned a Michelin star don’t have to reapply, but every year, Michelin sends anonymous inspectors to regularly check the consistency and quality of the food served in each restaurant.

If the quality is higher than the previous year, Michelin will grant the restaurant an additional star to make it two stars. Similarly, if the restaurant already has two stars, it will be upgraded to three stars.

If a restaurant fails to meet or maintain the criteria, they may lose a Michelin star or be removed from the list. This might have unwelcome repercussions on the restaurant’s business. For instance, when Chef Kevin Thornton's restaurant at the Fitzwilliam Hotel in Dublin lost its star, its profits dropped by 76%, eventually forcing the restaurant to close at the end of October 2016.

So, what are the solutions that restaurants need to pay attention to? In my opinion, there are four main points.

First, restaurants need to carefully evaluate their business model and target markets, not just relying on Michelin stars to attract customers.

Second, restaurant managers and staff need to be well prepared and well trained to maintain and preserve the Michelin star(s). Restaurants should consider hiring more staff to accommodate increased customer volumes and improve organisational and inventory processes.

Third, to improve customer satisfaction, restaurants should also invest in service quality and decor, while not putting too much pressure on the financial performance of the business.

Finally, restaurants should carefully plan for the amounts and types of investment they will make, as well as their financial resources. The passion and culinary artistry of the chefs must also be nurtured, as they all contribute to the success of the restaurant.

Story: Ha Quach (Vincent), Associate Lecturer in Tourism and Hospitality Management, The Business School, RMIT University

About the author

Ha Quach (Vincent) is an educator with more than 10 years of higher-education teaching experience in tourism and hotel management. He was educated in New Zealand, Switzerland and the United States, and holds a Certified Hospitality Educator (CHE) certification from the American Hotel & Lodging Educational Institute (AHLEI). Ha has also held various industry positions in hotels, restaurants and airlines in Switzerland, Greece, New Zealand, the United States and Vietnam. In addition to being an educator, Ha is currently a PhD candidate in Educational Administration and Leadership.

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