The use of migration matrices to test the sustainability of the top ranked restaurants: a methodological note

Purpose The purpose of this paper is to present a new methodology to estimate the migration of grades of top rated restaurant and the default rate over time. Design/methodology/approach To demonstrate how to develop migration matrices the empirical results are based on the real number of top-rated French restaurants in Gault-Millau in a specific year and how they migrate from one grade to another over the period 1974-2010. Findings The purpose of the empirical analysis is only to illustrate the methodology. It is shown that migration rates are relatively stable over time. Research limitations/implications Results are presented only to illustrate the methodology. Further analysis could provide a sound basis to compare the rating systems from one guide to another. Originality/value This research note explores the notion of migration rate by developing an alternative way of measuring how restaurants survive over time.