Method update does not exist in Laravel

It is very simple code to update an existing entry. save() is working perfectly. But update is not working. Here is my code:

Route::post('toggleFavourite',function(){
try{
$data = Request::all();
extract($data);
$favourite = ItScholarBdApiModelsFavourite::where(['user_id'=> $user_id,'shop_id'=> $shop_id])->get();
if(empty($favourite)){
$favourite = new ItScholarBdApiModelsFavourite;
$favourite->user_id = $user_id;
$favourite->shop_id = $shop_id;
$favourite->status = $status;
$favourite->save();
}else{
$favourite->status = $status;
$favourite->update();
}
return response()->json(['status' =>1, 'data' => $favourite], 200);
}
catch (Exception $ex) {
return response()->json(['status'=>0, 'status_text' => $ex->getMessage()], 500);

}
});

I am getting the following response:

{"status":0,"status_text":"Method update does not exist."}

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