Economy

More than half of businesses closed during the pandemic won’t reopen

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The review site has been following the closure since March. Companies can update their status to “Temporary or Permanent” on Yelp.

Almost 163,700 businesses on Yelp have closed since March 1 as of August 31, according to the company, up 23% from July 10. Of these, about 98,000 said they closed their doors forever.

Of all the closed enterprises, about 32,100 are restaurants, and about 19,600, or about 61%, have closed forever.

According to Yelp, some eateries have done better than others: pizzerias, deli, food vans, bakeries and coffee shops in general have done better than Mexican restaurants, breakfast and brunch spots, burgers or sandwiches, or dessert eateries.

Restaurant groups have warned that many eateries will not survive the hit from the pandemic.

The National Restaurant Association said this week that 100,000 restaurants have closed permanently or on a long-term basis, adding that the sector could drop $ 240 billion in sales this year.

A number of factors made it particularly difficult for restaurants that tend to operate on very thin margins even at the best of times.

First, according to the association, consumers spend less on dining out. Some people may feel unsafe when going to restaurants during this time. According to recent training from the U.S. Centers for Disease Control and Prevention, adults who test positive for Covid-19 were about twice as likely reported eating lunch at a restaurant 14 days before they became ill than those who tested negative.
Meanwhile, restaurant owners had to invest in innovations such as personal protective equipment for staff, outdoor seating, plexiglass partitions for indoor spaces and new technologies for contactless payment. And fewer visitors are allowed into the restaurant themselves. In regions where indoor dining is permitted, seating is limited to allow customers and staff to comply with social distancing guidelines.

Retailers are also struggling. About 30,400 shopping and retail establishments on Yelp have closed since March 1, about 17,500, or 58% of them, have closed permanently. Cities were particularly hard hit, according to available data. In Los Angeles, New York, Chicago and Miami, many companies in particular have ceased operations.

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