News Summary
Yelp’s initiative to label Black-owned restaurants may be unintentionally harming their ratings, as a study reveals a drop in average stars for these establishments in Detroit. Following the introduction of the ‘Black-owned’ tag, average ratings for these restaurants fell, while those for non-Black-owned places remained unchanged. The study also highlights biases in reviews based on awareness of ownership, suggesting a need for more effective strategies to support minority-owned businesses. Consequently, the increase in visibility does not translate to better ratings, impacting earnings for these restaurants.
Detroit – Yelp’s initiative to tag Black-owned restaurants has inadvertently lowered their average ratings, raising concerns about the effectiveness of digital representation strategies for minority-owned businesses. The “Black-owned” tag was introduced in 2020 with the intention of enhancing visibility for these establishments, yet the data suggests that it has had the opposite effect on customer ratings.
Following the tagline’s implementation, the average ratings for Black-owned restaurants in Detroit dropped from 3.91 to 3.88 stars. In comparison, non-Black-owned restaurants maintained a stable average rating of 3.90 stars. A key finding from a recent study indicated that reviewers who were aware of a restaurant’s Black ownership rated them significantly lower, averaging 3.03 stars, while those oblivious to this ownership rated the same establishments at 3.78 stars.
The study, which analyzed over 250,000 Yelp reviews from Black- and non-Black-owned restaurants across Detroit and Los Angeles, also highlighted a concurrent rise in the visibility of Black ownership. After the introduction of the tag, mentions of Black-owned restaurants increased by 4.3% in the following year. Nevertheless, this heightened awareness came with a downside, as more reviewers who identified the ownership rated them negatively, contributing to the decrease in overall ratings.
Moreover, Black-owned restaurants in Detroit have historically faced greater economic challenges, particularly during the COVID-19 pandemic, experiencing a more significant loss of business compared to their non-Black counterparts. This economic disparity is compounded by the fact that Black-owned businesses encounter obstacles such as difficulty obtaining loans and a lack of representation in the predominantly Black city of Detroit.
The introduction of the Black-owned tag appeared to have stimulated more cultural interactions on the platform, which, while positive in some respects, also led to crossed communication and complaints regarding service quality, with some reviewers citing experiences of “slower” and “rude” service. This discrepancy raises questions about the user demographics on Yelp, which primarily includes a predominantly white, educated, and affluent audience. Such a user base can skew ratings against Black-owned establishments and may not fully represent the community dynamics at play.
Low star ratings on Yelp not only diminish the visibility of a restaurant but can adversely affect its earnings and food sales. The correlation between online ratings and customer patronage is significant, with negative perceptions potentially dissuading prospective diners from supporting these businesses.
The findings from the study underscore the necessity for tailored digital intervention strategies rather than relying on a generalized approach that may not align with the unique challenges faced by minority-owned businesses. The data suggests that merely increasing visibility online does not automatically yield beneficial outcomes for Black-owned establishments. Additionally, issues arose from Yelp allowing businesses to be tagged as “Black-owned” even if they did not opt into this designation, further complicating the ratings and reviews process.
Overall, while Yelp’s intentions aimed to lend support to Black businesses through increased visibility, the results indicate that these well-meaning efforts might be causing unintended harm. The platform’s influence on consumer behavior highlights the importance of understanding community dynamics and the specific circumstances of minority-owned businesses, pointing to the need for a more nuanced approach to online representation.
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Additional Resources
- Michigan Advance: Yelp’s Addition of a Black-Owned Tag
- Visit Detroit: New Black-Owned Restaurants
- The Conversation: Drop in Business Ratings for Black-Owned Restaurants
- Black Enterprise: Yelp Black-Owned Business Ratings
- Second Wave Media: Black-Owned Foodie Businesses
- Wikipedia: Yelp
- Google Search: Black-owned businesses Detroit
- Google Scholar: Yelp ratings Black-owned businesses
- Encyclopedia Britannica: Rating
- Google News: Yelp Black-owned Detroit
