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  • Writer's pictureRanger Dave

One Year into the Pandemic, Yelp Data Reveals Impact on Local Economies

March 11 marks the one year anniversary of a major turning point in the lives of people in America – it’s the date the World Health Organization declared the COVID-19 outbreak a global pandemic. In the days and weeks that followed, cities and states mandated business closures and implemented stay-at-home orders in an effort to contain the spread. Yelp’s data scientists looked into notable trends during the first year of the pandemic, uncovering the resilience of local businesses with nearly half a million new business openings, new consumer behaviors in a socially distanced world, and changes to daily routines across fitness and beauty, among others.

Nearly Half a Million New Businesses Opened

Though small businesses faced an incredibly challenging year, Yelp data indicates there were nearly half a million new business openings (487,577 total) in the U.S. during the first year of the pandemic, March 11, 2020 through March 1, 2021 – down by only 14% year-over-year (YoY). Of the newly opened businesses, 76,051 were restaurant and food businesses, down by 18% YoY. With people spending more time at home and in their cars (as many people opted for road trips instead of air travel) 286,879 new professional, local, home and auto businesses opened – on par with the year prior, down by only 1% YoY.

In the restaurant and food categories, food delivery services (up 128%), chicken shops (up 23%), desserts (up 17%) and food trucks (up 12%) saw the largest increases in new business openings, compared to the prior year. Notaries (up 52%), landscaping (up 42%), auto detailing (up 37%) and contractors (up 5%) saw the largest increases in the professional, local, home and auto services categories.

Businesses Adapted and Many Reopened

As local regulations continued to change throughout the last year, businesses had to adapt – many by temporarily closing and reopening again. Between March 11, 2020 and March 1, 2021, 260,852 businesses reopened in the U.S. Of all reopenings, 85,446 were restaurant and food businesses and 36,199 were professional, local, home, and auto services businesses.

People Explored New Outdoor Activities and Sought Answers from Psychic Mediums

Consumer interest in drive-in movies (up 329%) and outdoor movies (up 99%) spiked as Americans looked for socially distanced activities, along with skate parks (up 75%), disc golf (up 73%), racetracks (up 71%) and horseback riding (up 41%). The average review mentions per million for “glamping” increased 53% (see Yelp’s top glamping destinations).

Americans also found themselves seeking answers from professionals like psychic mediums and psychics (up 74%), mystics (up 71%), psychic astrologists (up 69%) and astrologers (up 63%).

People Adjusted to Spending More Time at Home

As our lives and routines changed drastically, consumer interest for fitness equipment during the first year of the pandemic increased 175% and searches for restaurant takeout increased by 185%. However, contrary to what one might expect with shutdowns and stay-at-home orders across the country, consumer interest in waxing only decreased 6% during the first year of the pandemic, indicating that many were eager to get back to their waxing appointments once those services resumed.

Our data showed that the “Zoom Face” phenomenon may not be overblown: The average review mentions per million for the cosmetic procedure known as ‘lip flips’ increased 120% during the same timeframe.

With more time than ever in our homes, average review mentions per million for home offices and bathroom remodels and renovations increased 75% and 80%, respectively.

To learn about other trends Yelp data revealed during the course of the pandemic, read Yelp’s Home Trend Forecast Report and 2021 Trend Forecast Report.

— Jessica Mouras and Carl Bialik contributed to this report.

Interested in learning how Yelp can assist you in developing market insights for your business? Maestro as a Yelp Ads Partner can help, learn more here.

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