Looking at the actual filtered reviews for the restaurant mentioned, it's pretty easy to make some guesses about the "secret" algorithm. Very good or very bad reviews by people who have little history with the site, few reviews, minimal social involvement, or possibly a number of user-flagged previous reviews, get filtered. Being short and perfunctory appears to be a ding, too. A positive, filtered review: "New Year's Eve dinner 2011 was Great!! We have been coming here since 2005 and have never had anthing but a good time and great food . We live in San Jose and this is where we prefer to come for Italian. Mike and Lalo are always so nice and friendly, they make us feel at home. Mr. Bob isn't so bad either. Tiramisu Martini's really? Its a must and it was quite tasty. Hope 2012 is a Great Year for all." No profile picture, zero friends, and it's the user's only Yelp. A negative, filtered review: "The worst attitude towards their guests I have ever seen. The waiter refused to make any accommodations to their menu with a curt, "No," and the manager refused to accept a voucher from the restaurant because it was a "Special Evening" and said he would call the police rather than honor it!!! An expensive, average meal was bad enough but to be abused on top of it was really too much. Oh, but the bread was excellent. You can get it (or better) down the street at Boudin, take my advice and go there." A profile pic is displayed, but the user has no friends and no other reviews. There are also 8 four or five star reviews removed completely for violations of Yelp's guidelines -- presumably, the restaurateur or his friends were believed to have posted them, rather than "real" diners.
I have heard the claim a few times that Yelp scores do improve for those that advertise. The real test would be to see if the filter changes after advertising with them. There is a potential conflict-of-interest there. Of course Yelp doesn't want paying restaurants to be unhappy with their Yelp experience, but at the same time, changing it based on payment would be extortion. It seems they had some lawsuits filed against them a couple of years ago, which led them to allow merchants to see filtered reviews: http://blogs.wsj.com/digits/2010/04/06/after-lawsuits-yelp-m...
I think the authors suggestions are valid. I particularly like:
Why not? If you're going to use these businesses as the crux of your own, the least you could do is give them a voice. As for forcing them to advertise with you in order to address their concerns or share information with them, he's right that IS extortion. Unfortunately, his suggestion that businesses be able to opt out (even thought they never opted in) will not solve the problem. Most consumers would just see the "opting out" as admission of guilt. -they must be a really crappy restaurant if they're afraid to show their Yelp score. -Not saying that's right, but that is how it would be popularly received. By the way, when I got back to my hotel and told the woman at the desk where I had sushi, she smiled and said "you should have asked me". -She, of course, was right.3. Give businesses a chance to post comments or respond at the top of their Yelp page where the public can read it before going to the reviews.