TOPLINE
Local business search giant Yelp said Wednesday that 55% of U.S. businesses on the platform marked “temporary closed” are now “permanently closed,” a shocking statistic as local establishments likely struggle to stay afloat with social distance restrictions, mandatory closures and fearful consumers.
Sweet Tomatoes permanently closed all 97 restaurants and 3 distribution centers across the US and … [+]
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KEY FACTS
The largest number of closures on Yelp are in the states with the highest numbers of Covid-19 cases: California, New York and Texas.
Las Vegas is the U.S. city with the most permanently closed businesses due to the drop in tourism, Yelp said.
On a slightly positive note, the number of permanently closed businesses has decreased by 14% from June—with 66,290 businesses permanently closed on July 10.
Only 24% of businesses reported closed in April have reopened.
Restaurants are the most-closed businesses with 26,160 closures nationwide, though retail establishments are a close second at 26,119.
Yelp says that the rise of consumer activity on the platform in May correlates with increased Covid-19 cases in June: “As people began resuming common pre-pandemic activities across states like Florida, Nevada, South Carolina, Texas, Georgia and others—specifically frequenting restaurants, bars and nightlife, and gyms—a clear spike in Covid-19 cases within those locations followed,” says the report.
Crucial Quote
“While we can’t say for sure what the trend will look like, we do know that businesses face a tough road ahead of them. Businesses will need to focus on effectively communicating the health and safety protocols they’re taking, continuing to innovate on new ways to interact with and serve customers, as well as take advantage of any government assistance that’s available,” Yelp’s vice president of data science Justin Norman told Forbes.
Big Number
132,500-plus. That’s how many businesses listed on Yelp were marked closed on July 10.
Tangent
As the pandemic stretches on and some states reopen, search interest in alcohol-related businesses (like breweries and vineyards) rises while grocery store interest has declined.
Key Background
The paycheck protection program has made $521 in forgivable loans available to over 632,528 businesses impacted by the pandemic. Restaurants were the industry that received the most stimulus with $9.1 billion in loans by July 20, CNN reports. California, which Yelp cited as the state with the most business closures, received the most PPP money at $33 billion, followed by Texas and New York.
Further Reading
Expanded Unemployment Checks May Get An Extension As GOP And White House Negotiate (Forbes)
Covid-19 Pandemic Could Shutter A Third Of All U.S. Museums (Forbes)
Only 8% Of Americans Believe Schools Should Resume Normal In-Person Instruction (Forbes)
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