Restaurant Closures: Google and Yelp Star Ratings- The Brutal Truth

Google and Yelp Star Ratings of Closed Restaurants- What the Data Shows

Restaurantdata.com analyzed Google and Yelp star ratings of restaurants that closed in the previous quarter, comparing them against restaurants that remained open. The findings are stark: almost all restaurants that closed were rated under 4 stars, while 87% of restaurants that remained open held a 4-star rating or better. Ratings are the highest level of importance, and the data proves it!

📊 Key finding: Nearly all restaurant closures occur at locations rated below 4 stars on Google and Yelp. 87% of restaurants that stayed open maintained a 4-star rating or higher. Star ratings are one of the strongest predictors of restaurant survival available in public data.

The Brutal Truth: Ratings and Restaurant Survival

The relationship between star ratings and restaurant closure is not subtle. Restaurantdata.com’s analysis of closed restaurant locations from the prior quarter shows a clear and consistent pattern across both Google and Yelp ratings:

  • Restaurants that closed: Almost all rated under 4 stars on both Google and Yelp at the time of closure
  • Restaurants that stayed open: 87% maintained a 4-star rating or better across review platforms
  • The implication: A sub-4-star rating is a strong leading indicator of closure risk, and a 4-star-or-better rating is a meaningful signal of operational stability

Average Google and Yelp Ratings by State — Top 20 States

The chart below shows average Google and Yelp ratings for closed restaurant locations across the top 20 states by closure volume. Notably, Google ratings tend to run slightly higher than Yelp ratings across most states- a consistent pattern in platform-level review data.

Source: Restaurantdata.com · Analysis of closed restaurant locations · Google and Yelp rating data · Top 20 states by closure volume

#StateGoogle Rating (Avg)Yelp Rating (Avg)
1Alaska (AK)~3.8~3.9
2Illinois (IL)~3.6~3.9
3Missouri (MO)~3.1~3.9
4Indiana (IN)~3.5~3.9
5Alabama (AL)~3.5~3.9
6Washington (WA)~3.1~3.9
7Kentucky (KY)~3.5~3.9
8Colorado (CO)~3.5~3.9
9California (CA)~3.6~3.9
10Connecticut (CT)~3.6~3.9
11Iowa (IA)~3.6~3.9
12Kansas (KS)~3.6~3.9
13Arizona (AZ)~3.7~3.9
14Idaho (ID)~3.3~3.9
15Maine (ME)~3.6~4.0
16Arkansas (AR)~3.6~4.0
17New Hampshire (NH)~2.7~4.0
18Montana (MT)~3.0~4.0
19South Dakota (SD)~3.6~4.0
20Mississippi (MS)~3.2~4.0

* Ratings are approximate, read from chart data. All figures represent average ratings of closed restaurant locations in each state. Google ratings tend to run slightly lower than Yelp ratings across most states in this dataset.

What This Means for Foodservice Suppliers and Vendors

For suppliers, distributors, and vendors selling into the restaurant industry, star rating data is a powerful pre-qualification signal. A restaurant operating below 4 stars on Google or Yelp carries meaningfully higher closure risk. Meaning higher accounts receivable risk, shorter relationship longevity, and lower lifetime customer value.

Conversely, targeting new restaurant openings, before ratings are established combined with tracking which operators maintain 4-star-or-better ratings over time gives sales teams a built-in quality filter for their prospecting lists.

See also: U.S. Restaurant Openings and Closures 2024 →  |  Restaurant Leads: Verified Weekly New Opening Data →

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