The Impact Of Labeling Businesses As Black-Owned
Identifying Brands As Black-Owned Can Pay Off For Businesses.
Labeling businesses as Black-owned can significantly boost their sales, we found in a recent study.
In June 2020, the business-review website Yelp introduced a feature allowing consumers to search for Black-owned restaurants. As professors who study digitization, inequality and the economics of technology, we were interested in understanding its effect. So we analyzed more than two years of data from Yelp.
We 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. These results suggest that for many Black-owned businesses, a simple change in their visibility can create new opportunities for growth.
However, the i...