85% of businesses temporarily closed in the US since the pandemic outbreak have reopened as of September 30, 2021, follow for Yelp. In general, new businesses opening nationwide have disappeared, although the entertainment, hospitality and beauty industries are driving growth. And, consumer interest in nightlife, fitness, and entertainment has largely exceeded 2019 levels.
New businesses gradually increased in the third quarter. In the third quarter, new business establishments across categories remained stable, reaching 142, 328 – up 1% YoY.
However, the total number of new businesses opened in the first nine months of 2021 (439, 094) still exceeds pre-pandemic levels for the same time period in 2019 (433, 243).
Entertainment, hospitality and beauty have spurred new businesses. New properties in the entertainment and hospitality sectors on Yelp increased in Q3 2021 compared to Q3 2020, which is expected as the vaccine became widely available earlier this year.
In Q3 2021, hotels accounted for 3,514 new openings (up 32% YoY), nightlife saw 2,570 new openings (up 30% YoY), and businesses in the beauty sector grew 11 , 029 (up 7% YoY).
New food and restaurant businesses remain stable across the country. , the number of new openings of restaurant and food businesses increased 2% year-on-year, adding 19,892 new businesses in the third quarter of 2021.
Growth in this category looks different when analyzed at the state level: Many states saw an increase in food and restaurant openings from Q3 2020 to Q3 2021, including including Alaska (up 79%), Connecticut (up 20%), Hawaii (up 19%), Maine (up 57%), Montana (up 6%), New York (up 8%), Rhode Island (up 12%) ) and Wyoming (up 32%).
As for reopening, 83% of restaurant and food businesses that were temporarily closed since March 2020 and end of Q3 2021 reopened as of September 30, 2021.
People are very interested in nightlife, fitness and entertainment. During the third quarter of 2020, nightlife businesses in many states were forced to close due to pandemic restrictions. A year later, consumer interest (as measured by Yelp through interactions with businesses on its platform, such as viewing business pages, posting photos, reviews, etc.) This sector has grown significantly – interest in dance clubs (up 67%), piano bars (up 58%), comedy clubs (up 79%), speakeasies (up 80%) and gay bars (up 38%) all increased compared to Q3 2020 levels.
Exercise and fitness classes have a similar level of interest. In Q3 2021, pilates (up 54%), pole dance classes (up 56%), aerial fitness (up 74%), yoga (up 41%), barre class (up 42%) and sauna (up 55%) all surpassed the level of consumer interest in Q3 2020.
In addition, consumer interest in bowling is growing (up 116% compared to Q3 2020), water parks (up 115%), ax throwing (up 107%), stadium arena (up). 96%), indoor play centers (up 204%), laser tags (up 77%) and theme parks (up 70%) may indicate that consumers are less hesitant to participate in events. activities that are socially difficult or impossible.
Why do we care. These stats give us a general idea of how local businesses are performing and what's top- in the minds of consumers. Business reopenings have declined, which could mean temporarily closing businesses is less common and local economies are adapting.
While entertainment and hospitality spur new businesses to open, these businesses may still be navigating labor shortages, which can severely impact their ability to serve guests. customers and undermine marketing efforts. The restaurant and food industries are facing similar labor shortages, coupled with soaring food prices, which may explain the slowdown in growth across the country.
In the entertainment, fitness and nightlife industries, consumer interest has exceeded 2019 levels across the board, save for cinemas. This shift could be driven by the availability of a COVID vaccine and pent-up demand from 2020 and earlier this year.
These statistics can be interpreted as positive, but it is important to remember that they are historical data. The pandemic is still here, and so are its side effects: Inflation is at a pace fastest at 13 years there is a labor shortage in certain sectors, mask regulations are still in effect in some states, certain cities have vaccine requirements for indoor businesses, and Supply chain difficulties are decreasing for customers. Plus, we're approaching the holiday season, which saw a significant increase in COVID cases last year – business owners and marketers should have a plan in place if history repeats itself.