This can work once or maybe in one or two places per region, but the reality is that many people will use services like yelp to narrow down their new eateries by a simple sort-by-rating.
Also this somewhat depends on people being connected to local media to be informed about this reversal. Most of my technology friends have zero interaction with local media. That is they don't listen to local radio, watch local TV, read local publications; thus they are more likely to read about this place far far away than to read about a similar even locally.
But this all raises a much larger issue and that is we almost need a yelp to rate the rating services. Especially as time goes by these crowd sourced rating services will either begin to alter their ratings for pay or they will be largely gamed by various unethical players who usually have financial motives to game the system.
For instance in my town most restaurants don't have more than a few dozen ratings at best. Thus it would not take a competitor much effort to set up a series of shill accounts and trash their overall average. "I was served beef that had 2 cooked worms and the salad had a maggot in it, the owner laughed when I pointed this out and said that he has paid off the health inspectors so go ahead an call."
Not to mention that there are professional services that will do this sort of shill voting for you. As an example when certain companies are brought up on slashdot there is an instant onslaught of comments that basically are talking points written in a style that only a PR company would use. "Those spurious allegations were never proven in court, with all court actions dropped, and the publications that conjured up that story don't even rate as tabloids. This civic minded company has given over $2,000,000 to women's shelters in the local area alone."
But as more and more companies come to realize that crowd sourced rating or communication systems can be gamed for profit then they will put more and more sophisticated efforts into gaming the system. I love the slashdot system of quazi randomly assigning moderator points but very simply if you have 1,000 slashdot accounts run by a group of interns then a huge number of points and comments could be brought to bare on any issue that is desired.
If you want to run a simple experiment. Go onto reddit, go into the appropriate area and trash talk a fortune 50 company using a classically known wrongdoing from recent history. In most cases your topic will not only be voted into oblivion it will have many comments that are the above mentioned talking points. Some issues are so powerful that it can overwhelm the mathematical capability of their PR firms if they don't get onto the issue fast enough or if reddit happens to have nullified one of their voting cadres recently.
So unless someone comes up with a mathematically sound system of voting/rating that is invulnerable to manipulation these systems will only remain viable for as long as the people running them are able to maintain their ethics and outsmart the professional and financially motivated manipulators.
