I think it is a result of the five star rating system -- a vast majority of the businesses fall between a 4 and a 4.5 star rating. Perhaps a binary rating system is a better forcing mechanism to determine quality?
But since we're stuck with the five star system...here is how I leverage Yelp review data when it comes to selecting a small business to patronize:
1. Normalize for the true Yelp rating scale of 4 - 4.5 stars. Filter out anything below a 4 star rating. If a small business is unable achieve 4 stars on Yelp, then something must be really wrong.
2. Quantity of reviews is important. For starters, you need a significant sample size of review data for the star rating to be meaningful. Further on the review quantity front: massive review numbers relative to other similar businesses in that given city is a good signal of popularity (though not necessarily quality).
3. You need to supplement your Yelp findings from points 1 and 2 with other sources, ideally critical reviews (e.g. Eater, Serious Eats, Time Out, NY Times, Chicago Mag, etc).
4. The content of individual Yelp reviews should be taken with a grain of salt. Your individual priorities and tastes might be radically different so there is limited value in an individual's rating. I've come across some truly great restaurants with 1-star reviews because the reviewer tried to dine at the restaurant on a Monday...when it was closed.
But since we're stuck with the five star system...here is how I leverage Yelp review data when it comes to selecting a small business to patronize:
1. Normalize for the true Yelp rating scale of 4 - 4.5 stars. Filter out anything below a 4 star rating. If a small business is unable achieve 4 stars on Yelp, then something must be really wrong.
2. Quantity of reviews is important. For starters, you need a significant sample size of review data for the star rating to be meaningful. Further on the review quantity front: massive review numbers relative to other similar businesses in that given city is a good signal of popularity (though not necessarily quality).
3. You need to supplement your Yelp findings from points 1 and 2 with other sources, ideally critical reviews (e.g. Eater, Serious Eats, Time Out, NY Times, Chicago Mag, etc).
4. The content of individual Yelp reviews should be taken with a grain of salt. Your individual priorities and tastes might be radically different so there is limited value in an individual's rating. I've come across some truly great restaurants with 1-star reviews because the reviewer tried to dine at the restaurant on a Monday...when it was closed.