A one-star increase in Yelp rating leads to a 5–9% increase in restaurant revenue (Luca, HBS)
Verified Confidence: high
Primary source found; it says the same thing, the scope matches, and it is reasonably current.
- Commonly cited as
- "One extra Yelp star = 5–9% more revenue"
- True origin
- Harvard Business School (Michael Luca) — Reviews, Reputation, and Revenue: The Case of Yelp.com (working paper, 2011/2016)
- Type
- Reference fact: A frequently needed number or rule taken directly from a primary source (e.g. Pew, Census, IAB/PwC, FTC), with its as-of date.
- Year
- 2016
- Data as of
- Working paper using Seattle restaurant data, 2003–2009
- Last checked
- What the source says
(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 & sample
- Regression discontinuity on Yelp's rounding thresholds using Washington State restaurant revenue data.
- Drift between quote and source
- 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 we opened
Machine-readable: /api/claims/yelp-one-star-increase-5-9-percent-revenue.json · Last checked 2026-10-16