Examining the Effects of COVID-19 on Business Activity and Consumer Behavior in Philadelphia

This study investigates the impact of the COVID-19 pandemic on businesses and consumer sentiment in Philadelphia using Yelp data. I analyze business closure and opening rates, changes in consumer sentiment, and topic changes in re- views for both central business district (CBD) and non-CBD areas. Results show that CBD businesses experienced a higher rate of closures compared to non-CBD businesses. Additionally, I found an interesting pattern that customer ratings along with sentiments towards businesses became higher after the pandemic out- break, with a larger increase in positive reviews for CBD businesses compared to non-CBD businesses. Topic modeling revealed a shift in topics discussed in Yelp reviews, with an increased focus on safety measures and delivery/takeout options. Our findings have important implications for policymakers and businesses in Philadelphia, highlighting the need for targeted support for CBD businesses and a focus on implementing safety measures to rebuild consumer confidence.