Restaurants and Retail Continue to Struggle
Number of businesses marked closed on Yelp that were open March 1
Yelp report: 60% of restaurants that closed amid Covid won’t reopen
Below is via Yelp’s Economic Average
Permanent Closures Continue to Increase Across Restaurants, Retail and Other Industries
While some industries have been able to slowly bounce back with fewer temporary closures, many are still enduring an increasing number of permanently closed businesses.
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, an increase of 2,179 since June 15. Of the all closed restaurants in July, 15,770 have permanently closed (60%), accounting for 2,956 more permanent closures, a 23% increase since June 15. Meanwhile, bars and nightlife, an industry 6X smaller than restaurants, have endured an especially high closure rate, with 5,454 total business closures, 2,429 (44%) of which are permanent closures.
Many retail businesses shifted their operating models and started offering curbside pickup and online ordering, unfortunately those measures aren’t always enough to sustain their business long term. Shopping and retail businesses have endured 26,119 total business closures, of which 12,454 are permanent, representing 48% of closed retail businesses on Yelp. On June 15, we reported 27,663 closed retail and shopping businesses, of which only 9,640 were permanently closed. Since then we’ve seen 1,544 retail businesses reopen, however an even higher number have been forced to shut their doors permanently, accounting for 2,814 new permanent closures, a 29% increase in permanent retail closures in the last month.
The beauty industry follows a similar trend as the retail industry with 13,609 total business closures, a decrease from 15,348 in June, as many businesses have been able to reopen their brick and mortar locations. However, the industry has suffered from 1,213 new permanent closures since June 15, totalling 4,897 permanent closures as of July 10.
Similar to retail and beauty, though there are fewer temporarily closed businesses, the fitness industry has also suffered from an increase in permanent closures. As of July 10, there have been 4,907 total fitness closures, a decrease of 682 closed businesses since June 15. However, of all closed fitness businesses 1,930 are permanently closed, representing 39% of closed fitness businesses on Yelp – 504 more permanent closures than in June. While some fitness businesses have been able to continue operating through virtual classes, many smaller brick and mortar studios have been forced to shut their doors permanently, as these small businesses battle affording high rent and operating expenses without being able to use their physical space.
