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.