Last week brought some grim data for small businesses.
Yelp, the popular online review site, revealed that approximately 163,000 of the businesses – mostly restaurants – that listed on their site had disappeared and that, through July, almost 98,000 businesses won’t return. Around that same time a new report issued by the National Restaurant Association warned that more than 100,000 restaurants have permanently closed this year and unless action was taken, more will also fail.
The culprit of all this? Covid-19, of course. But is Covid really to blame? Yes. And no. Let’s dig a little deeper into the numbers.
The fact is that restaurants don’t have a great track record for success. Margins are thin, competition is tough and consumers can be fickle. Which is why, according to industry reports, 60% of restaurants don’t make it past their first year and