Sixty percent of the restaurants that closed during the pandemic are now closed forever, says the report by Yelp, the online service that offers reviews from multiple sources.
“The restaurant industry now reflects the highest total business closings, recently outperforming retailers,” says Yelp.
Many have tried to accommodate with online ordering, curb pickup, and home delivery.
As of July 10, Yelp found 26,160 total restaurant closings, an increase of 2,179 from June 15.
Of all the restaurants closed in July, 15,770 have closed permanently (60%), representing 2,956 more permanent closings, says Yelp. That’s a 23% increase from June 15.
Emily Catalon runs GoodFoodPittsburgh.com and has been following the opening and closing trends there.
“Honestly, it is on the brink of devastation,” he told affiliate KDKA.
But the restaurant business is also notoriously tough in ordinary times, with high competition and low profit margins, says Caleb Spivak, whose What Now Media Group covers retailers and restaurants through WhatNowAtlanta.com and WhatNowLosAngeles.com.
“It is still too early to tell some of them why they closed permanently,” Spivak told CNN. “Many of these restaurants were already struggling.”
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