Yelp Reports Nearly 16,000 Permanent Restaurant Closures Since Start of Pandemic

Yelp, the company that connects people with great local businesses, this week released its second quarter data, revealing the dramatic impact COVID-19 has had on local economies.

The data collected from millions of local businesses and tens of millions of users, shows a declining trend in total business closures. However, permanent closures now account for 55% of all closed businesses since March 1, a 14% increase from June.

The restaurant industry now reflects the highest total business closures, recently surpassing retail. As of July 10, there have been 26,160 total restaurant closures, of which 60% have permanently closed (15,770 permanent closures). Meanwhile, bars and nightlife, an industry six times smaller than restaurants, have endured an especially high closure rate, with 5,454 total business closures, of which 44% are permanent closures (2,429).

Many retail businesses shifted their operating models and started offering curbside pickup and online ordering. Unfortunately, those measures aren’t always enough to sustain the businesses long term. Shopping and retail businesses have endured 26,119 total business closures, of which 48% are permanent (12,454 permanent closures).

The data shows 1,544 retail businesses have reopened since June 15, however, an even higher number have been forced to shut their doors permanently, accounting for a 29% increase in permanent retail closures in the last month. Both the beauty and fitness industries follow a similar trend as the retail industry, with a decrease in temporary closures and an increase in permanent closures.

While many businesses are struggling right now, there are a few that have been able to withstand the economic downturn. Professional services such as lawyers and accountants are seeing fewer closures. Online services like web design and graphic design are also doing well during the pandemic as many businesses have shifted to remote work. Health services, such as physicians, counseling and mental health services, and health coaches are also closing at lower rates – all critical resources during this time. Education businesses have also had success weathering the storm, including private tutors, as people look for resources to learn new skills, and parents seek resources to supplement distance learning.

People’s interest in supporting the Black community by spending at Black-owned businesses continues to remain high. From May 25 to July 10, there has been a 7,043% year-over-year increase in searches for Black-owned businesses on Yelp — in total, 2.5 million searches. Washington D.C. and Maryland both had more than 1% of all searches on Yelp for “Black-owned” since May 25th, a 39% increase in Maryland, and a 24% increase in Washington D.C., year-over-year.

While searches for Black-owned restaurants have remained particularly popular (up 2,508%), most recently, people have also been searching for more specific Black-owned businesses. Searches for Black-owned boutiques have increased by 331% compared to the same time last year, while searches for Black-owned bakeries and ice cream shops has grown by 56%. Searches for Black doctors rose by 183%, and Black-owned coffee shops has increased by 161%. Black-owned bookstores have seen a particularly high increase in consumer interest, with searches up 1,437% year-over-year, as people look to find resources from Black authors, possibly to better educate themselves on anti-Black racism, police brutality and other social justice issues that have plagued the Black community.

See all economic average reports and other resources at yelpeconomicaverage.com.