{
  "schema_version": "1.1",
  "id": "yelp-one-star-increase-5-9-percent-revenue",
  "slug": "yelp-one-star-increase-5-9-percent-revenue",
  "url": "https://groundedkit.com/claims/yelp-one-star-increase-5-9-percent-revenue/",
  "api_url": "https://groundedkit.com/api/claims/yelp-one-star-increase-5-9-percent-revenue.json",
  "claim": "A one-star increase in Yelp rating leads to a 5–9% increase in restaurant revenue (Luca, HBS)",
  "commonly_cited_as": "\"One extra Yelp star = 5–9% more revenue\"",
  "verdict": "verified",
  "verdict_definition": "Primary source found; it says the same thing, the scope matches, and it is reasonably current.",
  "confidence": "high",
  "rating": {
    "value": 5,
    "best": 5,
    "worst": 1
  },
  "origin": {
    "publisher": "Harvard Business School (Michael Luca)",
    "title": "Reviews, Reputation, and Revenue: The Case of Yelp.com (working paper, 2011/2016)",
    "year": "2016"
  },
  "quote": "(1) a one-star increase in Yelp rating leads to a 5-9 percent increase in revenue, (2) this effect is driven by independent restaurants; ratings do not affect restaurants with chain affiliation",
  "method": "Regression discontinuity on Yelp's rounding thresholds using Washington State restaurant revenue data.",
  "drift": [
    "Scope: independent restaurants in Seattle; no effect for chains"
  ],
  "interest": "n/a (academic research).",
  "safe_rephrasing": "Michael Luca's HBS study found a one-star increase in Yelp rating raised revenue 5–9% for independent Seattle restaurants, with no effect for chains.",
  "sources": [
    {
      "title": "HBS — Reviews, Reputation, and Revenue: Yelp",
      "url": "https://www.hbs.edu/faculty/Pages/item.aspx?num=41233",
      "primary": true
    }
  ],
  "kind": "reference_fact",
  "as_of": "Working paper using Seattle restaurant data, 2003–2009",
  "last_checked": "2026-10-16",
  "stale": false,
  "date_reviewed": "2026-10-16",
  "license": "CC BY 4.0",
  "license_url": "https://creativecommons.org/licenses/by/4.0/"
}