Superstar Effects in Deluxe Gastronomy - An Empirical Analysis of Value Creation in German Quality Restaurants
AbstractWe analyze whether superstar effects (disproportionate income effects) exist in the deep-pocket market for quality gastronomy in Germany, and what factors determine the stars' rents. In quality gastronomy, the stars can be the restaurant chefs. Building on Rosen's (1981) and Adler's (1985) central theories on star effects, we explore two potential sources of stardom. Following Rosen (1981) , we test if quality differences between the chefs' performances have a direct effect on financial rewards ("direct superstar effect"). Following Adler (1985) , we assess the income effect of a media presence of chefs ("classical Superstar effect"). Through this, we deal with an economic issue of general interest: does it pay more to develop your skills in your core business to perfection, or to maintain the current level of skills and invest in self-marketing? Analyzing a sample of 288 restaurants, for potential star effects by differences in quality, we find that higher quality increases chefs' revenues. Yet, revenues do not increase disproportionately, and achieving higher quality requires substantial investments in exquisite ingredients, excellent staff and prime ambience. This problem, also called the "agony of the stars", has manifested itself in the bankruptcies of European three-star restaurants in recent years. As regards potential star effects by differences in media presence, we observe a positive impact of TV appearances on financial rewards. Yet, these income effects are moderate as well, so there is neither a direct, nor a classical superstar effect in quality gastronomy. We argue that although both perfection of skills and self-marketing have similarly positive income effects, self-marketing seems both the less risky and the less stressful way to enhance income. Copyright 2009 Blackwell Publishing Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Kyklos.
Volume (Year): 62 (2009)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Eiji Yamamura & Fabio Sabatini, 2014.
"Superstars in politics: the role of the media in the rise and success of Junichiro Koizumi,"
- Yamamura, Eiji & Sabatini, Fabio, 2014. "Superstars in politics: the role of the media in the rise and success of Junichiro Koizumi," EconStor Preprints 98661, ZBW - German National Library of Economics.
- Dakshina De Silva & Caroline Elliott & Robert Simmons, 2013. "Restaurant wars," Working Papers 44312700, Lancaster University Management School, Economics Department.
- Brinja Meiseberg, 2014. "Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music," Journal of Cultural Economics, Springer, vol. 38(1), pages 9-42, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.