Audio By Carbonatix
News broke yesterday that Sol’s Nieto Mexican Grill at Mockingbird and Abrams closed. Gubbins got the scoop from manager Blanca Perez: “The landlords refused to make any kind of deal with us, so there is nothing we can do. After 10 years, it’s heart-breaking for us to go down this way.”
Landlords … Getting locked out … Another victim of the economy? Or might it had to do with Sol’s Nieto abysmal two-star average on Yelp? Previously we’ve debated the pendulum swing of influence that Yelp can have. When a place continually gets lambasted in social media, it never seems to pan out well.
Recently Michael Luca of Harvard Business School published a study about the effects of Yelp and determined that a one-star increase on the site can create up to a 9 percent increase in revenue.
Does 9 percent help cover rent? Absolutely.
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Love it or hate it, social media reviews (among many other things) impact business.
