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Yelp: Permanent and Temporary Restaurant Closures Are Increasing

by Jennifer Marston
September 16, 2020September 16, 2020Filed under:
  • Business of Food
  • Delivery & Commerce
  • Featured
  • Restaurant Tech
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Roughly 61 percent of businesses listed as “closed” on Yelp have shuttered permanently, according to the platform’s latest Local Economic Impact report.

A total of 32,109 restaurants that were marked as open on the Yelp platform on March 1 are now closed, the new report details. Those numbers make the restaurant industry the most impacted by the pandemic of any business type on Yelp.

Those numbers, of course, only account for the restaurants listed on Yelp’s platform. The National Restaurant Association, which represents the entire restaurant industry, released its own findings this week that said 100,000 restaurants, or nearly one in six, are closed either permanently or for the long term. But whether you go by Yelp’s numbers or the Association’s more widespread findings, the conclusion is the same: the uptick in restaurant closures continues to rise.

As far as Yelp’s new data is concerned, restaurant closure rates vary across the country. As today’s report notes, “Bigger states and metros with higher rents and more stringent local operations for small businesses throughout the last six months have felt a greater toll.” Geographically speaking, California, Texas, Florida, and New York had the highest number of closures of states, while Los Angeles, NYC, San Francisco, Chicago, and Dallas topped the list for cities.

Types of restaurants with the most closures include breakfast/brunch spots, burger joints, sandwich shops, dessert places and Mexican restaurants.

Yelp’s report wasn’t all gloomy news, though. It also noted that some restaurants have been able to maintain low closure rates. Not surprisingly, those are the restaurants focusing on delivery and takeout, offering food that travels well. While a small silver lining, that point suggests the work restaurants have been doing for the last six months to shift their strategies towards more to-go-friendly formats is not in vain.

Yelp’s new report, along with the Association’s figures, both come just days after the the CDC released findings that suggest those who eat in restaurant dining rooms are twice as likely to be at risk for COVID-19.


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