60 Percent of These Closed Businesses Will Never Reopen, Says New Report
The majority of these establishments have closed their doors forever.
The COVID pandemic has taken a toll on every aspect of American life, with the economy hit hard. A staggering number of hardworking people have lost their jobs, and century-old establishments have shut down as a result of the economic fallout from the pandemic. Various types of businesses—from retail to beauty to bars—have been impacted by COVID. The restaurant industry, which has suffered major losses, is struggling to recover. According to a recent report from Yelp, 61 percent of restaurants that have closed since March 1 will never reopen again.
Yelp compiled data in Sept. 2020 to create their "Local Economic Impact Report." The report found that a total of 32,109 restaurants were closed as of Aug. 31, and 19,590 (61 percent) of those closures were indicated to be permanent. According to Yelp, the hardest hit restaurants were breakfast and brunch spots, burger joints, sandwich shops, dessert places, and Mexican restaurants. Foods that do well with delivery and take out—such as pizza places, food trucks, bakeries, and coffee shops—tended to have lower closure rates, Yelp reports.
Large cities saw the most closures: 7,500 businesses were reported permanently closed in Los Angeles since March 1, and 7,100 businesses have permanently closed in New York City, according to Yelp. Indoor dining in New York City is returning Sept. 30 at 25 percent occupancy, but plenty of restaurants are not confident that this will be enough to keep them afloat. Meanwhile, Los Angeles County has not announced any plans to allow for indoor dining to return.
Although restaurants led the pack in closures, retail and shopping establishments were a close runner-up. According to the Yelp report, 58 percent of retail stores that have closed since March 1 don't believe they will reopen again. Yelp's data also showed that the most resilient business were spots that provided home, local, and professional services.
The restaurants that have survived the COVID pandemic were able to adapt and demonstrate their resilience, but many have taken a significant hit in revenue. It will be a long time before the industry returns to anything resembling normalcy. And for more coronavirus closures, This Beloved Discount Store Is Closing All of Its Locations.