frmichelin1-5, Exercise 1: The costs and benefits of a star

Model answer (check the details):

Costs: a large and skilled kitchen and dining-room staff; expensive ingredients and equipment; fine premises and wine; long hours and training; the pressure to keep consistency at every service; and the risk that losing a star damages bookings and reputation.

Benefits: higher bookings and prices; publicity and press interest; tourists who travel for the restaurant; a stronger position to open other restaurants, write books, work in television or license products; the ability to attract staff; and prestige for the owner and the region.

Easier to measure: staff costs, ingredient costs, the number of bookings and the prices charged, because they appear in accounts and booking records. Harder to measure: the value of reputation, the extra income from books and television, the effect on staff morale, and the pressure on the chef. Studies of the effect of a star on sales are rare and vary (check).

Conclusion: a star's benefits often show in the brand and in other ventures more than in the dining room's profit.

Care: do not quote a single percentage for the effect of a star unless you have a source, a year and a country.