Why Does a Tire Company Publish the Michelin Guide

Certain time of the year, “restauranteurs” and “foodies” freak out over a little red handbook release: The Michelin guide.

Michelin guide showcases dining establishments all around the world and awards Michelin star(s) to exceptional restaurants. Michelin guide is arguably the foremost authority on quality food in the modern era: gaining or losing a star could decide the restaurant’s future.

So how did a tire company become the arbiter of culinary greatness? It’s common to hear people say “I didn’t know it’s the same company!” It’s debatable whether there is any perceived link between the two branches of the company. The question remains: Is Michelin receiving any return (tire) on its investment (guide)?

In 1900, France only had around 350 cars and they remained as rich men’s toys. Michelin had to convince that a car was useful and promote driving as a way of life. Michelin first published its guide to inform all the details that drivers needed to “go touring” through French towns and cities.

Securing the future of the automobile was achieved decades ago. Yet the tire company keeps printing its red guides. Online competitions have hammered the guidebook’s business model; profit from selling actual handbooks are gone. Is switching to digital and free-content marketing helping Michelin?

Company representatives defend that the guide book is used for promoting the brand, an “investment.” But how well are the customers associating the guidebook with the core Michelin business? Could there be more factors that influence for Michelin’s decision to keep the guidebook alive?

What is the Michelin Guide? https://www.youtube.com/watch?v=myhgLb3hp_w

Why Does a Tire Company Publish the Michelin Guide? https://priceonomics.com/why-does-a-tire-company-publish-the-michelin-guide/

We look forward to hearing everyone’s thoughts.

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