Sustainability of a Michelin-Starred Restaurant: The Case of a Traditional Family Restaurant in Alessandria, Italy

Abstract

In the restaurant business, being awarded with a Michelin star can have dramatic effects on the success of a restaurant, especially in Europe. The loss of a star, however, can have reversed effect. I Caffi restaurant, is a family restaurant in Alessandria Italy awarded with one Michelin star. There is a lot of pressure to keep the family business going, being included in the Michelin guide is an advantage for the business. However, other restaurants who have lost their star had bad financial results. Meanwhile, forecasts for Italian restaurant industry is not favorable in the coming years. Internal weaknesses and external threats need to be addressed strategically so that the family business keeps on going for the next generation. The result of this study confirmed that while it is an advantage, there are other factors much more crucial in the sustainability of I Caffi than losing the Michelin star. And that while keeping the star is beneficial, a traditional family restaurant should adopt non-traditional approach to promote its business. This research would be the guideline in terms of the strategic approach of family owned restaurants with Michelin star, and also be the foundation for the future research specific to these type of restaurants in which there are none so far.