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Ratings | KRG Hospitality

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by David Klemt David Klemt No Comments

Cien Años Después: Michelin Hits Mexico

Cien Años Después: Michelin Guide Hits Mexico

by David Klemt

In news that may come as a shock to many, the Michelin Guide is covering Mexico for the first time in its 124-year history.

If, like me, you’re surprised, I think that’s justifiable. I raised an eyebrow when I learned that the Michelin Guide didn’t cover the US with an American edition until 2005.

Should you be curious about what cities were featured in that first American guide…it was only New York. From what I’ve gathered, 500 restaurants throughout the city’s boroughs received coverage. Of the 50 hotels included in that guide, all were in Manhattan.

And when it comes to Canada, Toronto and Vancouver guides didn’t exist until 2022. So, to learn that the Michelin Guide has just now arrived in Mexico was mind blowing.

However, the country is certainly attempting to make up for lost time (a total of 124 years of lost time). Coming out swinging for their first guide, more than 150 restaurants throughout Mexico earned recognition.

In 2024, 97 restaurants earned Michelin recommendations. A total of 42 Bib Gourmands were awarded. Six restaurants in Mexico earned Michelin Green Stars. Five restaurants received Michelin Special Awards, such as the Exceptional Cocktail Award, and the Mentor Chef Award.

Now, on to the “big” awards: Michelin Stars. Sixteen restaurants in Mexico now have one Michelin Star. Just two, both in Mexico City, earned two Michelin Stars: Quintonil, and Pujol.

Interestingly, both restaurants also earned placement on the World’s 50 Best Restaurants 2024 rankings. Pujol grabbed 33 on the list, while Quintonil is number seven.

Unfortunately, not a single restaurant in Mexico has been awarded three Mexican Stars. But, I think it’s only a matter of time.

But wait…

Finding out that the Michelin Guide hadn’t come to Mexico until 2024 piqued my interest. So, I did some digging and found myself sliding down a rabbit hole.

It may be difficult to believe at first glance, but the entirety of France was home to less than 3,000 cars in the year 1900. That’s not great if you happen to be in a few businesses: automobile manufacturing, tire manufacturing, and hospitality.

The demand for privately owned automobiles would need to increase if manufacturers were to succeed. This includes tire manufacturers. New vehicles coming off assembly lines would mean more tire sales. More drivingmore miles driven, specifically—would mean more tire repairs and replacements. And with more people driving across an entire country, tourism would increase. That, of course, is great for hotels, restaurants, cafes, pubs, and taverns.

So, to increase the demand for automobiles, and therefore tires and tourism (but mostly the tires), two brothers hatched a plan.

Édouard and André Michelin published the first Michelin Guide. Or, more accurately, the first Guide Michelin. Around 35,000 copies of the guide were distributed throughout France. 1900’s Guide Michelinwhich was free—contained maps; locations of hotels; locations of gas stations and repair shops; and instructions for repairing and replacing tires.

I haven’t read it, but I feel like the main instruction is, “Buy another Michelin tire. In fact, buy four more. No, five more—get yourself a spare. Or, hey, get eight so you have four spares, as long as they’re Michelin.”

…there’s more…

The iconic (or infamous) Star system was first introduced in 1926, with only one Star awarded. Five years later, the full Star system was developed (none, one, two, three). Yet another five years later, the meaning of each Star rating was revealed to the public.

As far as other countries not receiving Michelin Guide coverage, Italy first got a guide in 1956…and zero stars. Great Britain has received coverage off and on, but the Michelin Guide as we know itnarrowing its focus strictly to restaurants and hotelscame out in 1974. This edition also featured Ireland.

Okay, now it’s time for what’s truly astonishing: countries, cities, and city-states, apparently via their tourism boards, pay for Michelin Guide coverage.

I’ve heard “accusations” of corrupt lists, and payment in exchange for coverage of a certain city or country. However, I didn’t pay much heed to these claims.

But, apparently it’s confirmed that countries and cities do see the Michelin Guide as a worthwhile investment in their tourism industries.

While I’m not certain that I’d go so far as to label this exchange corruption, I do agree that it’s eyebrow-raising.

…and more.

For example, Atlanta, Georgia, became the seventh American city to receive a Michelin Guide. And according to an interview between travel news and research site Skift and Discover Atlanta CEO and President William Pate, the city invested $1 million in the Michelin Guide for three years of coverage.

Per Pate, restaurants featured in the Atlanta Michelin Guide saw growth of 30 percent. Further, restaurants not even featured saw a bump of about ten percent.

South Korea reportedly paid about $1 million in 2016 for a Michelin Guide, and it’s said that the government was unhappy with the coverage. I suppose that’s where some of the accusations of corruption or “scandal” could stem from. It’s reported that Thailand paid well over $4 million for Bangkok to receive five years of coverage, starting in 2017.

Turning our attention to Canada, the UAE, Malaysia, and Vietnam, sources claim they paid for coverage. However, in each case, the sum is described as “an undisclosed amount.”

A Smart Investment?

I can certainly understand why a country or city may choose to invest in Michelin Guide coverage. If it’s true that restaurants in Atlanta that weren’t even featured saw increased sales and traffic, that’s a commendable ROI.

According to several sources, restaurants that receive a recommendation or up to three Stars can see increases in business of anywhere from ten to 30 percent. In some cases, their business doubles. So, again, it may be wise for tourism boards to make these investments and put their restaurants scenes on the map. Or, in the case of known scenes, give them a significant boost.

I should note that, from what I’ve found, the Michelin Guide doesn’t hide their financial relationships. They appear to be open about payments (investments, contributions…choose your favorite term) received from government agencies or tourism boards.

At this time, I can’t state with any certainty if Mexico invested in the Michelin Guide to receive coverage. Therefore, I can’t say how much they invested to have their first guide published.

What I can say is that it’s about time that Mexico’s rich, vibrant, and sophisticated dining scene received this recognition.

Image: Raul Angel on Unsplash

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

by David Klemt David Klemt No Comments

Ovation Reveals 5 Secrets for Growth

Ovation Reveals 5 Secrets for Growth

by David Klemt

Sign that reads "We hear you."

Restaurant guest feedback platform Ovation CEO Zack Oates reveals five secrets to what he calls the “digital table touch.”

The company touts itself as the number-one guest feedback platform. Ease of use is one reason the Ovation is viewed so favorably. Guests receive a two-question survey via SMS. Operators receive honest feedback they can use to improve guest retention and loyalty.

Those curious in learning more about the platform can check out several case studies on the Ovation website. Odds are, one of these studies matches closely with an operator’s own business.

For the purposes of this article, I’m going to focus on Oates’ 2023 Bar & Restaurant Expo education session. Getting even more granular, I’m going to drill down to Oates’ digital table touch approach to guest feedback and retention.

If Oates’ startling claim about first-time guests is true, guest retention is even more difficult than many operators would think. According to Oates, 70 percent of first-time guests don’t return to a restaurant. That number is, simply put, too damn high. Fifty percent is too high.

Feedback Reality

Let’s be honest about in-person feedback. While there are some honest guests out there, for some reason people tend to leave without being honest during their visits. In the moment, most of us will say “great” or “very good” when asked by a server or manager about our restaurant experience.

This is a compelling phenomenon. Per Oates, 15 percent of dine-in orders have issues. And yet most guests won’t say about an issue during their visit. That rate doubles to 30 percent for delivery orders, by the way.

Being totally transparent, Oates says he behaves the same in restaurants. He’s the CEO of a restaurant feedback platform and he’ll still say everything is fine during a visit even when it isn’t. So, while physical table touches are important, they’re likely not giving an operator an accurate picture of what’s going on in their dining room.

In fact, Oates says rather bluntly that “table touches are out of touch.” Further, they’re not scalable, off-premises, honest, or capable of fixing root issues, in his opinion.

Likewise, long-form surveys. According to Oates, long feedback surveys have an abysmal take rate: 0.01 percent. At that point, the rate may as well be zero. Online reviews, as may operators likely know, don’t really represent most guests.

The best solution to secure honest, actionable feedback appears to be Ovation’s SMS-based process.

Secret #1: Make Measurement Frictionless

Hot take: The easier a thing is to do, the more people will participate.

So, operators who want collect valuable guest feedback need to make it simple. If a guest orders delivery, operators should stuff carryout bags and top boxes with a call to action. For in-person dining, they should add a feedback CTA to table toppers. QR codes can make the process very easy. CTAs need to be visible and simple to complete.

The winning formula seems to be a two-question survey and collecting guest data. So, operators should consider enrolling guests who participate and leave feedback in a $100 gift card draw (or something similar).

Secret #2: Drive 5-star Reviews

Oates says that operators should push guests to rate their experiences on review sites. Doing so not only results in collecting valuable feedback, it can boost reviews and increase a restaurant’s visibility. The more discoverable a restaurant is, the more traffic it can potentially see.

Also, a note on actual five-star reviews: that’s not the best score. People tend to distrust perfect scores and one-star reviews. Per Oates, the best score is 4.7 stars, and operators should aim for at least a 4.0.

Secret #3: Respond to Feedback

This means good and bad feedback, and in a timely manner. Per Oates, one bad review reaches 30 potential guests. So, it’s best to address the situation as quickly as possible—if an operator can do so without losing their cool.

To ensure that emotions don’t prevail over rational responses, follow the Three Cs of Bad Review Recovery:

  1. Collected.
  2. Compassionate.
  3. Call to action.

Remember, people want to feel important. When they leave a bad review the underlying feeling driving the review is likely a sense that they’ve been disrespected. Operators attempting to recover from a bad review need to make the reviewer feel acknowledged and important.

Secret #4: Discover and Act on Trends

A business term that has been making the rounds for years now is “kaizen.” This is the concept of everyone in an organization working toward making incremental improvements to the business.

Savvy operators will set aside their egos, find trends within the feedback they receive, and work to improve on any shortcomings.

Secret #5: Text Guests to Bring Them Back

As I’ve said before, if you really want to meet guests where they are, reach them on the phones in their pockets. However, Oates has more advice than simply, “Text them surveys.”

To boost participation, tempt guests with an offer. Oates says to make the offer a good one. So, operators should consider the following:

  • Come up with an offer and put it first.
  • Make it a good offer: “The first X amount of people to complete this survey will receive 15 percent off their next visit.”
  • Track participation via a link.

While operators can leverage each of the above secrets on their own, Ovation’s digital table touch process is seamless and easy to implement. Either way, collecting honest guest feedback and acting on it is one of the most effective methods for improving guest retention.

Image: Jon Tyson on Unsplash

KRG Hospitality tech stack consulting. Tech. Technology. CRM. POS. Restaurant. Bar. Cafe. Lounge. Hotel. Resort.

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