The business of Michelin star rankings

If you’ve been on the internet this week, there’s a good chance you already know that Michelin awarded its first stars to 13 Canadian restaurants

But does a Michelin star still offer the same benefits as it used to?  

Michelin, the world’s second-largest tire company, initially launched the guide in 1926 as a marketing strategy to get people in their cars and on the roads (wearing down tires, smart).  

Today, the Michelin guide is a pretty big deal:

  • Worldwide, it includes about 15,000 restaurants, but only about 10% have stars.
     
  • Its inspectors travel up to three weeks a month and eat out up to 10 meals a week.

Michelin inspectors look out for five things: quality of ingredients, culinary technique, flavours, a chef’s individual flair, and consistency between visits from various inspectors. 

Of over 7,500 restaurants in Toronto, among the one-star winners are Alo, a renowned French restaurant, and Don Alfonso 1890, once named the best Italian food outside of Italy.

  • One star means the restaurant is “worth a stop,” two, “…a detour” and three, “… a special journey” (a distinction that only 136 restaurants in the world hold).
     
  • Getting two stars, as Toronto’s Sushi Masaki Saito did, takes additional visits from inspectors who are experts in the region’s cuisine—in this case, Japan. 

Why it matters: The Michelin Guide is not only important both in the culinary community and as a way to cultivate talent, but cities see it as a guaranteed boost in tourism revenue. 

  • Stars equal dollar signs. On average, a restaurant’s visits increase by 20% with one star, 40% with two, and 100% with three. Prices tend to increase by similar amounts 

Yes, but: Experts say the Michelin picks don’t reflect the diversity of Toronto’s culinary landscape, and the guide (and its process) has faced a fair share of criticism in recent years. 

  • A small number of restaurants have also given back their stars after chefs claimed that trying to keep up with the guide’s high standards was hurting their health.

Zoom out: With diners increasingly replacing fancy guides with social media algorithms when deciding where to grab dinner, the future of these guides is becoming unclear.

What’s next: Still, Vancouver will be the next Canadian city featured in the Michelin guide.