Yelp report details Michigan business openings and inflation complaints


Inflation in the United States rose to 7% in December 2021, the highest rate since June 1982. This is compared to 6.8% in November 2021, with inflation skyrocketing in 2021 likely due to a number of factors, including pandemic-induced supply constraints and the energy surge. costs.

However, a recent Yelp report shows a majority of small business owners remain optimistic about the future of their business as customers and business owners face rising prices for goods and services. . Rising prices were increasingly mentioned in Yelp reviews, the company found, even as new business growth continued.

Yelp analyzed reviews for specific mentions of various inflation-related terms, including “higher prices”, “before it was cheaper” and “more expensive” as well as words and phrases like “constant value “, “stable prices” and “reasonably priced” from 2015 to 2021 to see how critics’ sentiment has changed, the company wrote.

Reviewers have consistently reported price increases at local businesses since 2015, Yelp found. This sentiment quickly declined in the second quarter of 2020, at the start of the pandemic, but rebounded to levels close to those of previous years in the third quarter. Consumer reviews indicating rising prices for goods and services hit a five-year high in the fourth quarter of 2021, a 29% increase from a year earlier, Yelp said.

According to the National Federation of Independent Businesses, November saw small businesses raise prices to the highest level since 1978. This was due to rising prices for basic necessities, Yelp said, including supplies and labor. workforce as wage growth continues to rise.

While the price increase may be more evident in customer reviews, it hasn’t impacted spending as Yelp data shows an increase in searches for higher priced businesses in 2021 and a decrease in searches for low-cost options since 2019. such as “$$$$” placements, the highest price on Yelp, increased by 56% and “$” placements, the cheapest options , decreased by 24%.

Additionally, business openings increased by 8% in 2021, according to Yelp, to 559,715 from 517,231 in 2020. Overall new business growth was down just 1% in 2021 from industry levels. before the pandemic in 2019.

In Michigan, there were 12,994 new business openings in 2021, up 15.8% from 2020, when there were 11,220 new businesses.

The fourth quarter of 2021 saw 121,943 new business openings nationwide, in line with the fourth quarter of 2020, down less than 1% during this period.

Openings are determined by counting new businesses listed on Yelp, which are added either by sales reps or Yelp users. Openings are adjusted year-over-year, which means that openings are measured against the same period in the prior period for the same business categories and geographic locations. This adjustment corrects for both seasonality and any difference in the baseline level of Yelp coverage within a given category and location.


Comments are closed.