Kevin Kahovec and Mary Kate McGovern discuss at Rizzo’s Bar & Inn in Wrigleyville as coronavirus disease restrictions (COVID-19) are relaxed in Chicago, Illinois, March 6, 2021.
Eileen T. Meslar | Reuters
More than 500,000 new businesses have been opened in the United States in the past year, new data from Yelp have shown, as the economy has recovered from the depths of the Covid pandemic.
In its Economic Report, published on Wednesday and compiled from its service lists, Yelp registered 516,754 new business openings from April 1, 2020 to March 31, down a remarkable 11% year-on-year. About 28%, 146,486, were in the first three months of 2021, down only 2% from a year earlier.
“Our data show that more new companies opened in the US in the first quarter of 2021 than in any other period in the last 12 months, giving an optimistic outlook that local economies are returning to solid ground after a tumultuous year. “Science data from Yelp Vice President Justin Norman told CNBC. “After a challenging year, 2021 begins with an encouraging start for the local economy.”
Yelp data found that more than 69,000 new restaurants and food companies have opened in the past year. Although it decreased by 14% compared to the previous year, it is still strong, given that those companies were among the most affected by coronavirus blockage in the first days of 2020 and subsequent measures to mitigate the virus.
“It seems that the year-on-year growth of new business openings reflects the current frenzy of the real estate market,” Norman said. “People are inspired to take advantage of low rents and create new jobs, putting personal savings in the direction of starting a new business.”
Across the country, different states recorded different reopening rates in the first quarter. But data from Yelp found that every state except North Dakota saw more openings in the first quarter than in the fourth quarter of last year. Not surprisingly, the states with the highest number of business openings were among those that eased restrictions throughout March or earlier, such as Michigan, Mississippi and South Carolina.
The reopening of the business reached its summer highs
As of March 1, 2020, almost 258,200 companies have reopened, of which more than 50,000 in the first quarter of this year, reaching the highest levels of last summer.
Yelp has published economic reports since the beginning of the pandemic, which has caused the temporary or permanent closure of hundreds of thousands of companies across the country. Yelp measures business reopening by counting U.S. businesses that were temporarily closed and reopened until March 31, 2021, and each reopened business is counted on the most recent day of its reopening.
“The reopening of the business has also grown across the country and even increased in the first quarter of 2021,” Norman said.
The types of companies that reopened sharply in the first quarter largely reflect the sectors that were negatively affected by the shutdowns, including bars, cafes and breakfast and brunch places.
In particular, tax services have seen a huge increase in reopening. “In the first quarter, several banks and tax services reopened to provide personal assistance, which, combined with a particularly confusing fiscal season in 2020, helps explain why we have seen an increase in reopening for tax professionals. and banks, “Norman said.
Again, data from Yelp showed that some states have experienced an increased level of business reopening, based on reduced Covid restrictions. Some states, including Arkansas, Delaware and Mississippi, have experienced over 65% of their total reopening in just the last three months.
Consumers show interest in home improvement, fitness and pickleball
In addition to measuring the number of new businesses and reopening businesses, Yelp data also shows how consumer interests are changing and how demand began to return for some pre-pandemic activity in the first quarter. Yelp measures consumer interest by counting the actions users take on the site to connect with companies.
Real estate and home improvement trends continued to show strong, with data from Yelp showing that states saw a 90% increase in interest in real estate brokers and a 100% increase in landfill services. In most states, demand for men and electricians has also increased.
“I think the trend we are seeing with increasing consumer interest in home and local services will depend on where you live and how flexible the companies are that allow employees to work from home,” Norman said.
“With recent headlines that more than half of US adults have received at least one Covid vaccine, it makes sense that people are still improving their homes,” he added. “Americans are preparing to return to parties, hosting indoor events and a summer that we hope will be better than the previous one.”
Yelp has also seen quarterly increases in interest in certain unique experiences and businesses. Interest in wineries has increased by over 300%. Some countries have seen an increase of over 700% in interest in international food stores. Some states have seen a 2,000% increase in interest in horseback riding. Missouri and Kansas saw a 200% increase in interest in pickleball.
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 rental and driving schools recorded short increases, but decreased. Yelp also saw interest in weapons and ammunition in January, followed by a drop in the level in the last months of the quarter.