Transforming the Michelin restaurant industry: Redefining value-centric norms and paradigms - An explorative study of the pay-to-working-hour ratio in Michelin restaurants

Abstract

The Michelin restaurant industry, renowned for exceptional culinary creations and dining experiences, operates in a dynamically changing environment influenced by shifting consumer preferences, economic conditions and pressure to maintain the stars under financially challenging conditions. In a culture of secrecy and authoritarianism, the industry’s future sustainability and the societal acceptance of the working hours, and limited compensation of employees have come into question, as influential Michelin-starred restaurants close due to a deteriorating staffing crisis endangering fine-dining restaurants. Growing public awareness on the matter and the urgency to find solutions underscore the need to address these scarcely studied gaps in research and pave the way for positive transformation and sustainable practices.

This study aims to uncover the factors sustaining the pay-to-working-hour ratio for chefs, identify potential barriers to change, and offer valuable insights to improve working practices. The research question "What causes and sustains the pay-to-working-hour ratio for chef employees in two-star Michelin restaurants across Europe?" is thus addressed through a qualitative approach, using interpretivist research philosophy and grounded theory to gather insights from eight interviews with industry chefs.

The findings reveal the prestige of the Michelin star leading to a prioritisation of upholding standards that strain financial resources. Legislative restrictions, increased overhead cost, and undertaken optimisation and cost-cutting measures without managerial education compromise employee compensation. With a negative perception of the chef profession, leaders prioritise customer demands and reinvest profits over increasing salaries, a practice socially accepted as staff is perceived as replaceable buffers to the financial bottom line. Thus, financial constraints, prestige constraints, cultural norms, and customer expectations constitute four barriers to change.

However, the study suggests a potential for transformative improvement by redefining value-centric norms in six areas and proposes a redefinition framework. By adopting a servant leadership approach, valuing employees, and prioritising their well-being, leaders can enhance job satisfaction, productivity, and retention. The concept of "new luxury" suggests exploring alternative ways of offering fine dining experiences without compromising employee pay and well-being, focusing on creativity that elevates simpler raw materials. Customer education and redefining the true value of the dining experience can lead to a loyal customer base and facilitate acceptance of boundaries that support fair employee treatment. Overall, the research contributes to a new understanding of value-centric norms in the Michelin industry, emphasising the need for deep-rooted cultural change and providing practical insights for leaders to embark on a transformative journey towards a more ethical, employee-centric, and sustainable future.