60% of restaurant closures since March 1 have been permanent, according to a report Yelp released on Wednesday.
Of the roughly 26,000 total restaurants that have closed in the last five months, 16,000 have been permanent, according to the report. The restaurant industry has been the hardest-hit by permanent closures compared to other industries since the start of the pandemic.
California has seen the highest number of permanent closures, accounting for about 14.4% of all restaurants that have gone out of business, followed by Texas at 8.5% and New York at 8.4%, Justin Norman, vice president of data science at Yelp, told Business Insider in an email.
“We anticipate states will roll back or delay reopening plans, which will inevitably impact the future success of businesses, possibly turning even more temporary closures into permanent ones,” Norman said in the email. “That said, we are seeing temporary closures reduce, which is a promising signal for many businesses.” But in general, the share of businesses that are closing their doors permanently is continuing to rise… Business Insider