Kevin Kahovec and Mary Kate McGovern chat at Rizzo’s Bar & Inn in Wrigleyville so that coronavirus disease restrictions (COVID-19) can be relaxed in Chicago, Illinois, on March 6, 2021.
Eileen T. Meslar | Reuters
More than 500,000 new businesses opened in the United States last year, according to new Yelp data, as the economy bounced back from the depths of the Covid pandemic.
In its economic average report, published Wednesday and compiled from its service listings, Yelp recorded 516,754 new business openings from April 1, 2020 to March 31, down significantly by only 11 % year-on-year. About 28%, 146,486, were during the first three months of 2021, just 2% less than the previous year.
“Our data show that more start-ups opened in the U.S. during the first quarter of 2021 than in any other period in the last twelve months, providing an optimistic outlook for local economies to be strong again after a year tumultuous “. Vice President Justin Norman told CNBC. “After a challenging year, 2021 is starting to be encouraging for the local economy.”
Yelp data found that more than 69,000 new restaurants and food companies opened last year. Although it fell 14% from the previous year, it remains strong as these companies were one of the hardest hit by coronavirus blockages in the early days of 2020 and subsequent virus mitigation measures.
“The year-over-year increase in new business openings appears to reflect the current frenzy in the real estate market,” Norman said. “People are inspired to take advantage of low rents and create new jobs by putting their personal savings into starting a new business.”
Across the country, different states have seen different reopening rates during the first quarter. But Yelp data found that all states except North Dakota saw more openings in the first quarter than the fourth quarter last year. Not surprisingly, states with the highest number of trade openings were among those that eased restrictions throughout March or earlier, such as Michigan, Mississippi and South Carolina.
Business reopenings reached summer highs
As of March 1, 2020, nearly 258,200 companies have reopened, with more than 50,000 in the first quarter of this year, reaching the highest levels since last summer.
Yelp has been publishing economic publications since the beginning of the pandemic, which caused the temporary or permanent shutdown of hundreds of thousands of businesses across the country. Yelp measures reopened companies by counting U.S. companies that were temporarily closed and reopened until March 31, 2021, and each reopened company is counted on the most recent day of reopening.
“Business reopenings also increased nationwide and even increased in the first quarter of 2021,” Norman said.
The types of companies that have reopened strongly in the first quarter mainly reflect sectors that have been negatively affected by the outages, including bars, cafes and places for breakfast and snacks.
Tax services, in particular, saw a large increase in reopening. “During the first quarter, more banks and tax services have reopened to provide face-to-face assistance, which, along with a particularly confusing fiscal season of 2020, helps explain why we’ve seen a rebound in reopening for professionals and tax banks, ”Norman said.
Again, Yelp data showed that certain states experienced a higher level of business reopening, based on reduced Covid restrictions. Some states, including Arkansas, Delaware, and Mississippi, have experienced more than 65% of their total reopening in just the past three months.
Consumers show interest in home improvement, fitness and pickleball
In addition to measuring the number of new businesses and business reopenings, Yelp data also shows how consumer interests are changing and how demand for some pre-pandemic activities began to return during the first quarter. Yelp measures consumer interest by counting the actions users take to the site to connect with businesses.
Real estate and home improvement trends continued to look strong, with Yelp data showing that states saw a 90% increase in interest from realtors and a 100% increase in services garbage disposal. In most states, the demand for crutches and electricians also increased.
“I think the trend we see with an increase in consumer interest in home and local services will depend on where you live and the flexibility of companies so that employees can work from home,” Norman said.
“With the latest headlines that more than half of U.S. adults have received at least one Covid vaccine, it makes sense that people will still improve their homes,” he added. “Americans are getting ready to go back to dinners, organize covered events and a summer that hopefully will be better than the last.”
Yelp also experienced quarterly increases in interest for some unique experiences and businesses. Interest in wineries increased by more than 300%. Some states experienced a 700% increase in interest in international grocery stores. Some states experienced a 2,000% increase in interest in riding. Missouri and Kansas experienced a 200% increase in interest in pickleball.
Yelp data also shows an 18% increase in consumer interest in exercise and exercise during the first quarter. Compared to the December 2020 baseline, interest in nail salons, motorcycle rental and driving schools experienced brief rises, but have been declining. Yelp also saw interest in guns and ammunition on the rise in January, followed by a leveling in later months of the quarter.