More new businesses opened in Q1 2021 than at any other time during the past 12 months, although total numbers fell from the previous year. Re-openings also hit their highest levels since Q2 2020, according to a report released Wednesday.
Many are turning their hobbies into businesses, and it's likely that few know the ins and outs of search advertising or social marketing.
For example, 5,682 dessert shops opened, as well as 1,694 cupcake shops and 161 shops that specialize in macarons.
Yelp released its Q1 2021 Yelp Economic Average (YEA) report today highlighting some key trends. The methodology is a little different for this quarter, compared with the past. For this quarter, openings were determined by counting new businesses listed on Yelp, which are added by either business owners or Yelp users.
To calculate business re-openings, Yelp, on each day beginning with March 1, 2020, counted U.S. businesses that were temporarily closed and reopened through March 31, 2021. It’s important to note that a re-opening is categorized as a temporary closure.
During the first quarter, restaurant and food business openings rose 5% to 18,217 in the past year and were down by 4% from Q1 2019.
Professional, local, home and auto sectors also saw a significant number of new business openings rose 5% to 79,332 and up by 23% from Q1 2019, during the same time period.
Of those, home services had the highest number of new openings in Q1, up 4% to 48,592; followed by local services, rising 16% to 16,602; professional services rising 2% to 14,134; and auto services rising 10% to 9,790.
More than half a million new businesses opened in the past year, and Q1 hit the highest level since pandemic began
Business re-openings accelerate in Q1 – climbing to 258,191 since March 1
Consumer are beginning to return to pre-pandemic activities