Common Types of Businesses that Failed in 2020

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The pandemic has changed the dynamics for a lot of businesses. According to Yelp’s data, in San Francisco Bay Area alone, there were approximately around 2000 businesses that closed permanently. And this isn’t exactly an isolated case.

Some countries have already fallen in to recession. And since the vaccine is not exactly something that would instantly make the virus disappear, a lot of businesses were forced to close. Many are losing their jobs because of this. Here are some of the businesses that failed in 2020 due to the pandemic.

Gyms

The gym can be considered a hotspot where you can get the virus. Today, a lot of people are doing their workouts at home. This prevents them from breathing the same air as other gym-goers. Unfortunately, a lot of gyms closed all over the world. Many of these gym owners decided to call it quits and cut their losses. Though some gyms are allowed to open, they were only allowed to have at least 50% capacity. And for a lot of gym owners, this isn’t something feasible especially when the rent is at a normal rate.

Restaurants

Restaurants are another business that has been affected by the pandemic. Consider yourself lucky if you have a restaurant that is still running to this day. A lot of these restaurants are struggling to pay the bills and keep their employees considering the significant decrease of people eating in restaurants. The good news is that some restaurants have shifted towards delivering food to their customers instead of them eating inside the restaurant.

But still, a lot of restaurants either closed or decided to let go of some of their employees to stay afloat.

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Bars

Whether it’s in South Korea or other parts of the world, bars can be considered a hotspot. Could you imagine drinking during weekends? With disregard for social distancing when you are out partying, bars are not allowed to open during the pandemic.

Manufacturing

If you have a startup and you have an OEM partner in China or India, don’t be surprised if there are delays. A lot of these factories have also adapted to the new normal. Some cities have adapted lockdowns that most of these factories are closed and failed to operate.
Companies such as Apple have suffered from these delays. Phones are made from China and since China was at the epicenter of the Covid19 pandemic, many of these factories failed to meet their obligations on time.

Transportation

The transportation sector has also been affected. With people staying at home, taxis, busses, and trains have significantly decreased in the number of passengers. And this isn’t exactly surprising given the initiative of authorities to lessen the number of people moving around to slow down the spread of the virus.

A lot of businesses have been affected by the current pandemic. Businesses are closing left and right. Though the internet has helped a lot of businesses to adapt to the new normal and stay afloat, expect the economy worldwide to not look good. It will take some time before things go back to how it is.

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