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60% of businesses closed during pandemic will never reopen, Yelp says

By Aja Seldon
Published  September 21, 2020 3:13pm PDT
COVID-19 and the Economy
KTVU FOX 2

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SAN FRANCISCO (KTVU) - The coronavirus pandemic continues to strain the economy even as states reopen more business sectors. The harsh reality is 60% of businesses that have been shut since the start of the pandemic will never reopen, according to recent data from Yelp. 

The review site has been tracking business closures since March. Businesses that appear on the site can mark that they are temporarily or permanently closed. 

As of August 31, 163,735 businesses on Yelp have closed since March 1, about a 23% increase from July. Even as virus restrictions ease up, allowing for some activities and services to resume, some businesses are closed for good. 

Yelp says 60% of those businesses that closed, which equals out to 97,966, will be permanently closed. 

There are some business sectors that have been able to survive better than others during the pandemic. Yelp explains that professional services and sole proprietors have been able to maintain a relatively low fraction of closures during the pandemic. Health-related businesses, such as hospitals, orthopedists, and OB/GYNs have also been able to maintain a low rate of closures with less than three closures out of every thousand businesses.

Of all the businesses shuttered, over 32,000 of them are restaurants with 19,590, or 61%, closed permanently. 

Restaurants that offer delivery services and takeout have weathered the storm better than others, including pizza places, delis, and food trucks. While breakfast spots, burger joints, and Mexican restaurants are among the types of eateries with the highest rate of business closures.