Businesses Related to Leisure, Hospitality and
Beauty Help Drive Growth in New Businesses
New Business Openings for First Three Quarters
of 2021 Are Above Pre-Pandemic Levels
Yelp Inc. (NYSE: YELP), the company that connects people with
great local businesses, today released third quarter 2021 data for
the Yelp Economic Average (YEA) report, a benchmark of local
economic strength in the U.S. The Q3 2021 YEA report reveals the
vast majority of businesses that experienced a temporary closure
during the pandemic have reopened. Yelp data also finds that
increases in both new business openings and consumer interest
reflect consumer demand for leisure activities that were upended by
early pandemic restrictions.
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the full release here:
https://www.businesswire.com/news/home/20211020005317/en/
Reopenings of temporarily closed
businesses are above 80% across all categories as of September 30,
2021. (Graphic: Business Wire)
In the third quarter, the level of reopenings decreased in raw
count and volume, according to Yelp data, signaling that local
economies are successfully adapting to operating as the pandemic
continues to evolve. Of all the businesses that temporarily closed
in the U.S. since the onset of the pandemic (March 2020), 85% have
reopened as of September 30, 2021. The total number of new
businesses opened in the first nine months of this year (439,094)
is above pre-pandemic levels for the same period in 2019
(433,243).
“We are seeing local businesses successfully adapt to serve
their communities amidst continued uncertainty caused by the
ongoing pandemic,” said Justin Norman, Yelp’s vice president of
data science. “Our data shows that an overwhelming majority of
businesses that had to temporarily close their doors during the
pandemic have reopened. The strong number of reopened businesses
combined with the high volume of new business openings is evidence
that the economy continues to recover from pandemic lows. As people
return to activities that were most impacted by pandemic
restrictions, like dining out, going to the gym or socializing at a
bar, we expect to see this pent up demand create new opportunities
for local businesses.”
New Business Openings for First Three Quarters of 2021 Are
Above Pre-Pandemic Levels
The total new business openings across categories remained
relatively flat in Q3 2021 reaching 142,328 openings, up 1%
compared to Q3 2020. However, the total number of new businesses
opened in the first nine months of 2021 (439,094) is above
pre-pandemic levels for the same period in 2019 (433,243).
Businesses Related to Leisure, Hospitality and Beauty Help
Drive New Businesses Growth
The majority of businesses that temporarily closed since March
2020 in beauty (90% reopened), nightlife (83%), and hotel and
travel (86%) categories, have reopened as of September 30, 2021.
Notably impacted by pandemic restrictions, new business openings in
leisure, beauty and hospitality on Yelp increased in Q3 2021
compared to Q3 2020. Hotels accounted for 3,514 new businesses
opened in Q3 2021, a 32% increase year-over-year.
Nightlife saw 2,570 new business openings in Q3 2021, up 30%
from Q3 2020. In Q3 2021, dance clubs (53 new business openings, up
279%) comedy clubs (34, up 240%) and lounges (213, up 88%) were all
above Q3 2020 levels.
Beauty added 11,029 new businesses in Q3 2021, a 7% increase
from Q3 2020. Teeth whitening (295, up 132% ) body contouring (654,
up 184%), eyebrow services (796, up 49%) and permanent makeup (729,
up 62%) all trended above Q3 2020 levels.
Restaurant and Food Businesses Continue to Adapt as the
Pandemic Evolves
For restaurants and food businesses, 83% of businesses that were
temporarily closed between March 2020 and the end of Q3 2021 have
reopened as of September 30, 2021. New restaurant and food business
openings remained steady with 19,892 new openings in Q3 2021, a 2%
increase year-over-year. As diners return to indoor dining, new
business openings for food courts (64 new business openings, up
166%) and buffets (54, up 200%) increased above 2020 levels.
Read the full report, as well as previous YEA reports, at
yelpeconomicaverage.com. Assets and images from the Q3 2021 YEA
report can be found here. For more information and Yelp’s latest
company metrics, visit:
https://www.yelp-press.com/company/fast-facts/default.aspx
Methodology
New Business Openings
Openings are determined by counting new businesses listed on
Yelp, which are added by either business representatives or Yelp
users. Openings are adjusted year-over-year, meaning openings are
measured relative to the same time period in the previous period
for the same business categories and geographic locations. This
adjustment corrects for both seasonality and any differences in the
baseline level of Yelp coverage in any given category and
geography.
Business Reopenings as a Percentage (%) of Temporary
Closures
To measure the percentage of businesses that have reopened after
a temporary closure, we count U.S. businesses that were identified
as temporarily closed and then reopened between March 1, 2020 and
September 30, 2021. The timing of temporary closures and reopenings
are based on when these events were reported to Yelp by consumers
or businesses, as such the data may reflect delays depending on
when Yelp received that information.
Reopenings include the termination of temporary closures as set
by a business through Yelp’s temporary closure feature, or by the
editing of business hours (excluding holiday closures). These
changes to business pages are also vetted by Yelp’s moderators.
Each reopened business is counted only once, on the date of its
most recent reopening during the applicable time period.
Temporary closures are signaled by a business owner marking the
business as temporarily closed, including by changing its hours or
through a COVID-19 banner on its Yelp page. One-day closures that
appear to be unrelated to the pandemic are not counted. Each
temporarily closed business is counted only once, on the date of
its most recent temporary closure. Temporary closures are a likely
measure of businesses that were most impacted by the pandemic,
however, many other businesses were also likely affected but
remained open with curtailed hours and staffing, or did not update
their Yelp business pages to reflect closures.
Business Reopenings
On each date, starting with March 1 2020, we count U.S.
businesses that were temporarily closed and reopened through
September 30, 2021. A reopening is of a temporary closure, whether
by using Yelp’s temporary closure feature or by editing hours,
excluding closures due to holidays and single day or less closures
that appear unrelated to the pandemic. Each reopened business is
counted at most once, on the date of its most recent reopening.
Consumer Interest
We measure consumer interest by looking at select actions users
take to connect with businesses on Yelp: such as viewing business
pages, or posting photos or reviews.
Changes in consumer interest for each category were measured by
comparing year-over-year data from Q3 2021 and Q3 2020, focusing on
each category’s share of all consumer actions in its root
category.
About Yelp Inc.
Yelp Inc. (www.yelp.com) connects people with great local
businesses. With unmatched local business information, photos and
review content, Yelp provides a one-stop local platform for
consumers to discover, connect and transact with local businesses
of all sizes by making it easy to request a quote, join a waitlist,
and make a reservation, appointment or purchase. Yelp was founded
in San Francisco in July 2004.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211020005317/en/
Yelp Inc. Nick Spence press@yelp.com
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