There have been 26,160 total restaurant closings.
Volatility has been a kiss of death for thousands of restaurants during the coronavirus pandemic.
Abrupt closings, inconsistent reopens, changes in public health guidance for operations, and other state-mandated orders have pushed the food service industry to the brink.
New data from Yelp revealed the stark reality of permanent closings for an alarming number of restaurants, already operating on thin margins.
The latest Local Economic Impact Report from the review site, released Wednesday, showed that 60% of restaurants that temporarily closed due to the pandemic have closed permanently.
According to Yelp, as of July 10 there were 26,160 total restaurant closings on Yelp and 15,770 of them have made the decision permanently.
“The restaurant industry now reflects the highest total business closings, recently outperforming retailers,” the report states.
Chefs, general managers, owners, bartenders and diners have tried to raise their voices to get help for the most affected sector. But those screams have been drowned out by the sound of companies going up to their restaurants, shutting down the service forever.
“Restaurants are known to operate on thin margins, making forced shutdown even more painful for the industry,” Justin Norman, vice president of data science at Yelp, told ABC News.
Norman said the company’s latest numbers draw a painful correlation to what might come next.
“Unfortunately, we expect these closings to continue,” said Norman. “As COVID-19 cases continue to rise across the county, we anticipate that states will backtrack or delay reopening plans, which will inevitably affect the future success of all businesses, including restaurants, possibly turning even more closings. temporary in permanent “.
Restaurant owners have been forced to quickly introduce new adaptations to menus, service points, hours, delivery, and takeaway models that best serve their local communities just by keeping the lights on.
Yelp reviewed changes in service, delivery, and take-out options, but many of the site’s registered restaurants were still unable to maintain their businesses.
Meanwhile, independent restaurants and larger chains have appealed for government assistance as they continue to iterate on what works.
“We’ve already seen a lot of successes in restaurants that have expanded their take-out and delivery options, some even offering food kits, drink kits, cooking classes and changing their use of technology,” said Norman, citing the platform on the waiting list of the company that manages the collection on the sidewalk.
Like many restaurants that have struggled to make it work, Canlis, an iconic location in the Pacific Northwest, successfully converted its gastronomy model and transformed more than once. First, it existed as a hamburger stand, then a coffee and bagel shop. It added farm-to-table produce kits, complete dinner deliveries with virtual bingo, and finally established itself as a completely outdoor crab cabin built specifically to accommodate social estrangement, owner Mark Canlis told ABC News.
But for restaurants without the capital or the ability to support such high changes, permanently closing has become an unfortunate reality across the United States.
Restaurants have lost more income and jobs than any other industry, according to the United States Census Bureau. A National Restaurant Association survey in June showed that the food service lost nearly $ 120 billion in sales during the first three months of the pandemic.
In addition to the grim reality of restaurants, bars, and clubs, they have suffered an especially high shutdown rate as a result of the coronavirus.
The bar and nightlife industry, which is six times smaller than the restaurant industry, recorded a total of 5,454 business closings, 2,429 of which are permanent, according to Yelp.
Despite the devastating numbers of restaurants, the popular site and online business directory app also reported some encouraging data on spending behavior in the restaurant category.
From June 1, Yelp saw consumer interest increase in steakhouses, French food, raw and live food, as well as German cuisine.
Yelp users have also shown increased interest in alcohol-related experiences with breweries up to 24% and wineries up to 51%.
Additionally, user interest in black-owned businesses has remained high since Yelp’s Local Economic Impact Report last month, with category searches up to 2,508% on the platform.
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