Kevin Kahovec and Mary Kate McGovern chat at Rizzo’s Bar & Inn in Wrigleyville as coronavirus (COVID-19) restrictions are eased in Chicago, Illinois, March 6, 2021.
Eileen T. Meslar | Reuters
More information than Yelp has opened more than 500,000 new businesses in the United States over the past year, as the economy recovers to deep into the Covid pandemic.
In its economic average report, released on Wednesday and compiled from the listings on its service, Yelp saw 516,754 new business openings from April 1, 2020 through March 31, significantly below only 11% per year. About 28%, 146,486, were in the first three months of 2021, just 2% lower than a year earlier.
“Our data shows that more new businesses opened in the US during the first quarter of 2021 than in any other period during the last twelve months, which offers an optimistic outlook that local economies are back on solid ground after a turbulent years, “said Yelp data science. Vice President Justin Norman told CNBC. “After a challenging year, 2021 starts the local economy encouragingly.”
Yelp data shows that more than 69,000 new restaurants and food businesses have opened in the past year. It is 14% lower than in the previous year, but it is still strong, as the enterprises in the early days of 2020 and the subsequent virus mitigation measures were hit hardest by the coronavirus closures.
“The increase in new businesses in the year-on-year series seems to reflect the madness of the current housing market,” Norman said. “People are inspired to take advantage of low rents and create new jobs by focusing their personal savings on starting a new business.”
Across the country, different states saw different reopens in the first quarter. But Yelp data showed that every state except North Dakota saw a greater number of openings in the first quarter than in the fourth quarter of last year. It is not surprising that the states with the most businesses were among those that eased restrictions during March or earlier, such as Michigan, Mississippi, and South Carolina.
The reopening of business has reached summer highs
Since March 1, 2020, nearly 258,200 businesses have reopened, of which more than 50,000 in the first quarter of this year, reaching the highest levels since last summer.
Yelp has been publishing economic reports since the start of the pandemic, which has caused the temporary or permanent strike of hundreds of thousands of businesses across the country. Yelp measures reopening businesses by counting U.S. businesses that were temporarily closed and reopened until March 31, 2021, and each reopening business is counted on the most recent day of reopening.
“Reopening of business has also increased across the country and even increased in the first quarter of 2021,” Norman said.
The types of businesses that reopened strongly in the first quarter mostly reflect sectors adversely affected by the shutdown, including pubs, coffee houses, breakfast and breakfast places.
Tax services in particular have seen a large increase in reopening. “In the first quarter, more banks and tax services reopened to provide personal assistance – this, coupled with a particularly confusing tax season in 2020, helps explain why we saw an increase in reopening for tax staff and banks,” Norman said. said.
Again, Yelp data showed that some states experienced an increased level of business reopening based on their mitigation of Covid restrictions. Some states, including Arkansas, Delaware and Mississippi, have experienced more than 65% of their total reopens in the past three months.
Consumers show interest in home improvement, fitness and Pickleball
In addition to measuring the number of new businesses and reopens, Yelp’s data also shows how consumer interests are changing and how demand is returning to some pre-pandemic activity in the first quarter. Yelp measures the interest of that consumer by counting actions that users on the site take to connect with businesses.
Trends in real estate and home improvement continued to appear strong, with Yelp data showing that states saw a 90% increase in interest in brokers and a 100% increase in junk removal services. In most states, the demand for craftsmen and electricians was also greater.
“I think the trend we are seeing with increasing interest in consumers in homes and local services will depend on your place of residence and how flexible businesses are in allowing employees to work from home,” Norman said.
“With recent headlines that more than half of all American adults have received at least one Covid vaccine, it makes sense that people are still improving their homes,” he added. “Americans are getting ready to go back to dinner parties, offering indoor events, and a summer that will hopefully be better than the previous one.”
Yelp also saw quarterly improvements in interest in some unique experiences and businesses. Interest in wineries has increased by more than 300%. Some states have seen an increase of more than 700% in international grocery stores. Some countries have a 2,000% increase in equestrianism. Missouri and Kansas received a 200% increase for pickle ball interest.
Yelp data also shows an 18% increase in consumer interest in fitness and exercise in the first quarter, compared to a December 2020 baseline, interest in nail salons, motorcycle rentals and driving schools was short but steady. Yelp also saw interest in weapons and ammunition in January, followed by a flattening in later months in that quarter.