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More than half of the businesses that closed during the pandemic will not reopen



The review site has been monitoring closures since March. Businesses can update their status to temporarily or permanently closed on Yelp.

As of August 31, nearly 163,700 businesses on Yelp have closed since March 1, the company said, marking a 23% increase since July 10. Of these, around 98,000 claim to have closed their doors forever.

Of all closed businesses, around 32,100 are restaurants and nearly 19,600, or about 61%, have closed permanently.

An empty table in a permanently closed restaurant in Manhattan on August 31[ads1], 2020 in New York City.

According to Yelp, some restaurants fared better than others: pizzerias, delis, food trucks, bakeries and coffee shops performed better overall than Mexican restaurants, breakfast and brunch spots, burgers or sandwich shops, or restaurants that focus on dessert. .

Restaurant groups have warned that many restaurants will not survive the blow of the pandemic.

This week, the National Restaurant Association said 100,000 restaurants have been closed permanently or long-term, adding that the industry is on track to lose $ 240 billion in sales this year.

A number of factors have made it particularly difficult for restaurants, which tend to operate with razor-thin margins even at the best of times, to overcome discomfort.

First, consumers spend less on eating out, according to the association. Some people may not feel safe eating in restaurants right now. According to a recent study by the Centers for Disease Control and Prevention in the United States, adults who tested positive for Covid-19 were about twice as likely to have reported having dinner in a restaurant in the 14 days before becoming ill than those who tested negative.
Meanwhile, restaurant owners have had to invest in new items such as personal protective equipment for staff, outdoor seating, plexiglass dividers for indoor spaces, and new technologies for contactless payment. And fewer customers are allowed in the restaurant itself. Regions that allow indoor dining have imposed limits on seating capacity so customers and staff can respect social distancing rules.

Retail operators are also struggling. About 30,400 stores and retail stores on Yelp have closed since March 1, about 17,500, or 58% of them permanently. And cities have been particularly hard hit, according to the data. Los Angeles, New York, Chicago and Miami have seen a particularly large number of companies go out of business.


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