Does Yelp Matter? Analyzing (And Guide to Using) Ratings for a Quick Serve Restaurant Chain
In this paper, we perform an analysis of reviews for a national quick serve (fast food) restaurant chain. Results show that the company-owned restaurants consistently perform better than franchised restaurants in numeric rating (1–5 stars) in states which contain both types of operations. Using sales data, correlations are used to evaluate the relationship between the number of guests or sales of a restaurant and the rating of the restaurant. We found positive correlations were present between the number of customers at a location and the numeric rating. No correlation was found between the average ticket size and numeric rating. The study also found that 5-star rated restaurants have frequent comments related to the cleanliness and friendliness of the staff whereas 1-star rated restaurants have comments more closely related to speed of service and temperature of food. Overall, the study found that in contrast to previous research, rating sites like Yelp are relevant in the quick serve restaurant sector and reviews can be used to inform operational decisions, leading to improved performance. Detailed explanations related to the process of extracting this data and relevant code are provided for future researchers interested in analyzing Yelp reviews.
KeywordsYelp reviews Word clouds Quick serve restaurants R SAS Correlation
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