In June 2020, Yelp introduced a feature allowing consumers to search for Black-owned restaurants. Professors who study consumer behavior analyzed more than two years of data from Yelp and found that restaurants labeled as Black-owned saw a 65% increase in online traffic, more searches and calls, and higher sales through food orders and in-person visits. The impact varied by location.
The gains were strongest in politically liberal areas and places with lower levels of implicit racial bias. White customers drove most of the increase, suggesting the label helped raise awareness of businesses they might not have considered. Similar results were found in follow-up analyses among businesses that opted into the feature later.
Yelp collaborated with the online furniture company Wayfair, which launched a “Black-Owned” label on its site in 2023 and found that it led to a 57% increase in web traffic. Yelp also rolled out a Latino-owned label on the platform late that year, which led to a similar increase in consumer engagement. This research has implications for business owners, digital platforms, and policymakers.
Growing awareness of racial inequality has led to increased corporate and customer interest in promoting racial equity. The findings suggest that increasing the visibility of minority ownership can substantially improve economic outcomes for Black-owned businesses: Oren Reshef, Assistant Professor of Strategy and Entrepreneurship at Washington University in St.
Black-owned restaurants see significant boost
Louis, Abhay Aneja, Assistant Professor of Law at the University of California, Berkeley, and Michael Luca, Director of the Technology and Society Initiative at Johns Hopkins University’s Carey Business School, conducted the research. In Indianapolis, Black-owned businesses have seen significant growth in recent years.
According to a Yelp Economic Report, Black-owned businesses grew by 59% in the Indianapolis area, more than double the national average of 24%. Monique Hawkins and her daughter, Kara Hawkins, co-founded a restaurant in 2021 at the AMP at 16 Tech. “It’s been so beautiful that we have been able to inspire and be an example of women making history,” said Kara Hawkins.
Their Black and women-owned business has expanded to include five more local locations, including Lucas Oil Stadium and Gainbridge Fieldhouse. Despite the boom, Anita Williams from the Indy Black Chamber of Commerce emphasized that there is still a significant disparity gap to close. “Much of the disparity has to do with the confidence of having a business,” Williams explained.
In other cultures, there have been generations of people who’ve had businesses or started businesses and even had the financing and connections with the bank to introduce their legacy to other people; we don’t always have that.
The Indy Black Chamber of Commerce, revived 10 years ago, helps support local businesses through classes and connecting owners to funding and resources. Indianapolis has also conducted a disparity study to analyze the barriers owners might face related to the city’s contracting process. The boom of Black-owned businesses in Indianapolis showcases resilience and these enterprises’ vital role in the community.
As initiatives to support these businesses continue, there is hope for a more equitable economic landscape.
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