A restaurant's rating depends on five factors:
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food selection, quality
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wine selection, quality
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ambiance
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service
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pricing appropriate
A restaurant of 1 or 2 stars will provide casual dining with good, basic fare at a good price.
A restaurant of 2 or 3 stars will offer a larger variety of menu choices, with more upscale decor - casual dining, but you would want to look nice when going there.
A restaurant of 3 or 4 stars will provide a more elegant atmosphere, with a menu that includes a reasonable wine list. Reservations are likely to be a good idea, if not required. For men, wearing a sport jacket, and for women, wearing a dress or jacket, blouse, and skirt should be considered the rule.
A 5-star restaurant improves on a 4-star, but also has that hard-to-describe extra something - which includes the menu and the food itself, its wine cellar, elegance in decor and manner throughout, service and demeanor by an impeccably pleasant staff in semi-formal attire, and appropriate prices - that creates a feeling that just makes you smile the moment you walk in the door, and which builds into enjoyment that continues for your whole visit.