Oxygen bars, dance clubs and comedy outlets are among the sectors where business openings are roaring back, according to The Philly Business Journal citing new data from business review site Yelp.
Those types of establishments posted significant growth in business openings compared to a year ago when they were still being significantly limited by Covid-19.
New oxygen bar openings grew 300% in the third quarter of 2021 compared to the same time last year. Dance club openings grew 279%, comedy clubs grew 240% and jazz and blues businesses grew 175%, according to Yelp. Exercise and fitness centers are also seeing a surge.
Meanwhile, the vast majority of businesses that closed temporarily during the pandemic have reopened, with 85% having reopened as of Sept. 30, according to Yelp. Restaurant reopening were slightly below that average, with 83% having reopened, while beauty services were at 90%.
New business openings in 2021, at about 439,094 over the first nine months, are above their pre-pandemic levels from 2019, according to Yelp.
“We are seeing local businesses successfully adapt to serve their communities amidst continued uncertainty caused by the ongoing pandemic," said Justin Norman, Yelp’s vice president of data science, in a press release. “The strong number of reopened businesses combined with the high volume of new business openings is evidence that the economy continues to recover from pandemic lows. As people return to activities that were most impacted by pandemic restrictions, like dining out, going to the gym or socializing at a bar, we expect to see this pent-up demand create new opportunities for local businesses."
As we reported earlier this week, Visa Inc.'s top economist believes the Delta variant's impact on consumer spending is waning. Yelp's data supports that thesis.
Consumers are more interested in getting out and doing stuff than ever, according to Yelp's measurement of consumer interest, which includes viewing business pages and posting photos and reviews. Consumer interest is up 116% over the third quarter of 2020 for bowling, up 115% for waterparks, up 107% for axe throwing, up 204% for indoor play centers and up 70% for amusement parks.
But new and existing business owners still have to contend with a host of potential problems. That includes sky-high quit rates and rapidly rising wages in some industries – according to new data from payroll provider Gusto. It might also be years before the labor force and overall participation rates in the workforce return to normal levels. Some have projected the labor shortage will actually get even worse due to demographic shifts.
The quit numbers are one of the reasons restaurants that hoped for a full turnaround in 2021 are instead facing the potential for a bleak winter.
No comments:
Post a Comment