By Oren Reshef, Washington University in St. Louis; Abhay Aneja, University of California, Berkeley, and Michael Luca, Johns Hopkins University

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 impact varied by location. The gains were strongest in politically liberal areas and places with lower levels of implicit racial bias, as measured by regional variation in implicit-association test scores. This suggests that platforms are in part channeling, as opposed to creating, customer demand. Interestingly, white customers drove most of the increase, suggesting the label helped raise awareness of businesses they might not have considered before.

This wasn’t just a 2020 trend – in follow-up analyses, we found similar results among businesses that opted into the feature later. We also collaborated with the online furniture company Wayfair, which launched a “Black Maker” label on its site in 2023, and found that it led to a 57% increase in web traffic. Finally, Yelp rolled out a Latino-owned label on the platform late that year, which led to a similar increase in consumer engagement.

Why it matters

This research has implications for business owners, digital platforms and policymakers. Growing awareness of racial inequality – partially driven by the Black Lives Matter movement, especially after the murder of George Floyd in 2020 — has led to increased corporate and customer interest in supporting minority-owned businesses. It also led many companies to make commitments to promote racial equity.

However, more recently, many companies have dismantled these efforts. For instance, Target recently announced that it was eliminating its program to spotlight Black-owned businesses. Our findings suggest that increasing the visibility of minority ownership – a relatively low-cost change – can substantially improve economic outcomes for Black-owned businesses.

Our results also show that diversity initiatives aren’t just about warm and fuzzy feelings. Businesses should measure and evaluate their impact to ensure their programs are effective. A well-designed program can benefit the bottom line, while a poorly designed one risks being ineffective or even counterproductive.

So it’s important to acknowledge the potential risks. Past research, including some of our own, indicates that revealing racial identity sometimes can lead to discrimination or backlash. While our findings suggest that labeling can have positive effects, a poorly implemented policy can backfire. Yelp’s initiative design empowered users looking to support Black-owned businesses while allowing other users to continue searching in alternative ways.

That means policy design is crucial. What matters isn’t just what information is revealed, but also how it’s communicated. Our analysis shows that customer demand and preferences vary considerably across locations and demographics, meaning that context also matters.

What still isn’t known

While our research suggests that businesses experienced economic benefits from adopting the label, it’s crucial to understand which policy designs work best in the long run. For instance, Yelp’s program used an opt-in feature, which may have contributed to its success.

However, open questions remain. How are platforms affected by labeling businesses? What other types of labels might be impactful, and for which types of businesses? Could some interventions backfire?

Another key question is, which customers respond to racial identity disclosures? Recent advances in data analytics can help companies refine their strategies, making it easier to target the right consumer groups for more effective initiatives.

Ultimately, our study is a step toward understanding how transparency and visibility can shape economic outcomes. It highlights a diversity initiative that has benefited both customers and businesses, and provides a road map for companies that want to design initiatives that matter. And, more broadly, it speaks to a question facing all companies: How can companies better understand and shape their societal footprint?

This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Oren Reshef, Washington University in St. Louis; Abhay Aneja, University of California, Berkeley, and Michael Luca, Johns Hopkins University

Read more:

• A boycott campaign fuels tension between Black shoppers and Black-owned brands – evoking the long struggle for ‘consumer citizenship’
• The backlash against diversity, equity and inclusion in business is in full force − but myths obscure the real value of DEI
• Campus diversity is becoming difficult to measure as students keep their race and ethnicity hidden on college applications

In the past, Oren Reshef has worked as an Economics Research Intern at Yelp. The company did not intervene in the analysis or the publication process of this article.

Michael Luca has done consulting for tech companies including Yelp.

Abhay Aneja does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Feature Image: Photo by Christina @ wocintechchat.com on Unsplash

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By Amy Vogelgesang

Cincinnati Computer Cooperative

Direct from a Hollywood movie set, $100 off laptops at local nonprofit 

For many in Cincinnati, ‘tis the season to find great ways to stretch a dollar.  The nonprofit Cincinnati Computer Cooperative is ready to help with $100 off a special group of refurbished laptops. The Cooperative recently received a limited supply of Lenovo 11e ThinkPads from a Hollywood movie filmed here in the Tri-State.

Frank Adams, Executive Director, Cincinnati Computer Cooperative says, “We’re delighted to give Cincinnatians $100 off on these special laptops. They were used as props in a Hollywood movie and usually they’d cost $250. But you can get them for $150 – $100 off.”

He continued, “The only catch is, you have to hurry. When they’re gone, they’re gone, it’s that simple.” In addition to the movie laptops, the Cooperative has a wide selection of refurbished desktops and laptops available at their regular low prices.

Like all of the Cooperative’s refurbished laptops, the Lenovo ThinkPad 11e models include free Microsoft Office software and a one year guarantee.

Adams explains, “These laptops are compact in size and incredibly easy to use. All the setup is done in advance so your software works immediately on startup.”

The Cooperative must follow nonprofit requirements for program eligibility. You’re eligible to buy if you’re a student, over 55 or on any form of public assistance. The Cooperative also serves schools and nonprofits. Adams says, “Remember, if you’re buying for someone who’s eligible, you’re eligible.”

The $100 off movie laptops are compact Lenovo ThinkPad 11e (4th gen) models, super portable 11.6-Inch laptops with 8GB RAM, 256GB SSD, 7th gen i3. The free Microsoft Office software includes Word, PowerPoint, and Excel along with free antivirus.

Call 513.771.3262 or Visit Monday – Friday 3-6 p.m., 49 Novner Dr., Cincinnati, 45215.

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Nearest Green Distillery Is Officially the Most Successful Black-Owned Distillery in the World

SHELBYVILLE, Tenn – Uncle Nearest Premium Whiskey announced recently its sales exceeded $100 million through October 2022. The award-winning bourbon believes it will double its sales by the end of 2023.

“To reach this and every other milestone on our horizon, we continue to push nonstop. Every penny this company has earned has gone back into the business, as well as to put Nearest Green’s college-age descendants through college and to invest in minority-owned businesses and entrepreneurs through our Black Business Booster program (BBB), the Nearest and Jack Advancement Initiative (NJAI) and Uncle Nearest Ventures,” said Weaver. “Every cent we make in the future will continue to do the same. We have an entire generation of women and people of color, who represent 70 percent of our country but still feel marginalized and underrepresented, counting on us. This group continues to look to Uncle Nearest as proof that anything is possible. We will not let them down. With the support of one of the most loyal consumer bases in spirits, we will continue to do the ‘impossible’ so they know, as long as they operate in excellence and refuse to give up, they can achieve whatever their heart believes.”

Uncle Nearest Premium Whiskey recently expanded its 323-acre distillery which has welcomed more than 100,000 guests with that number increasing significantly every week.

“I joined the team this year with one mission in mind: to make Nearest Green Distillery one of the top three most visited distilleries in the world,” said Brielle Caruso, Chief Marketing Officer for Nearest Green Distillery, who two years ago made history as the first Asian American female CMO in the spirits industry. “I have no doubt we will achieve that milestone even faster than we crossed the $100 million sales mark.”

The company was founded by its CEO Fawn Weaver in 2017. She was then joined by Chief Business Officer Katharine Jerkens and, shortly after, Victoria Eady Butler, the great-great-granddaughter of the company’s namesake, Nearest Green, and four-time Master Blender of the Year recipient.

 Last year, Uncle Nearest announced it had become the best-selling Black American-founded, owned, and led spirit brand in U.S. history. With today’s announcement, the company has taken on the world’s largest. The company’s whiskey portfolio of seven offerings, available at its distillery in Shelbyville, Tennessee and in all 50 states, territories, and districts nationwide, ranges in suggested retail price from $49.99 to $149.

On Juneteenth 2021, an expanded Nearest Green Distillery opened to the public, a project that has cost approximately $50 million. On Black Friday, the company released its much-anticipated Single Barrel Black Label at the distillery for $79 and sold out of the first set of barrels immediately, requiring an additional bottling before doors opened the following morning. “For the longest time, folks were sitting around waiting for us to fail. First, they underestimated us, then they expected us to fail,” said Victoria Eady Butler. “I guess they do that with independent companies owned by women or people of color. Well, more than five years into this level of growth, y’all can stop waiting. We are not a fad or some trendy brand – we are a purpose-driven, mission-oriented company. Uncle Nearest and Nearest Green Distillery aren’t just here to stay, but to grow and sustain at a pace never seen

The post Uncle Nearest Premium Whiskey Exceeds $100 Million Sales Mark appeared first on The Cincinnati Herald .

Despite the relatively small sample size in the survey, a growing number of shoppers said Black Friday had lost its appeal.

By Stacy M. Brown
NNPA Newswire Senior National Correspondent
@StacyBrownMedia

According to a survey conducted in October, nearly 70 percent of consumers plan to skip Black Friday and holiday shopping altogether this year.
While some believed retailers manipulated shoppers, a relatively large amount (18%) said they won’t shop because of large crowds.
Despite the relatively small sample size in the survey, a growing number of shoppers said Black Friday had lost its appeal.
“While Black Friday sales provide a great opportunity for brands to keep customers coming back for more, it also presents noteworthy risks for shoppers around buying too much,” said Michael Podolsky, CEO, and co-founder of PissedConsumer.com, which conducted the survey.
“Consumers are now savvier with their purchases and how much they spend. That is not just inflation causing the shift in consumer behavior,” Podolsky stated.
“The survey revealed that 85% of shoppers now rely on online reviews when buying as they intend to avoid general unhappiness with shopping.”
Small business growth expert Stephanie Scheller of Grow Disrupt said there’s little question that the days of getting excited about the day after Thanksgiving shopping sprees have ended.
“While there are still ‘doorbusters’ at some places that are worth participating in, most places offer great deals online or are starting so early that it’s not worth the fight for Black Friday beyond tradition,” Scheller offered.
“I think that the problem with this is that we’ll end up diluting the power of the concept, and while overall shopping numbers might be okay, the one-powerful-day for generating sales for the holiday season concept is likely to fade.”
According to Adobe Analytics, Black Friday 2021 raked in $14.04 billion in online sales, with $8.9 billion spent on Black Friday and $5.14 billion on Thanksgiving.
The spending represented a .63% decrease from 2020 when Black Friday sales raked in $14.13 billion in online sales.
At the height of the coronavirus pandemic in 2020, 100 million consumers shopped online, while in-person Black Friday shopping fell 37 percent from 2019.
“Digitalization has encouraged the growth of online stores, due to which special deals and offers remain no more exclusive,” said Matt Gillman, founder of SMB Compass.
“People prefer online stores more than regular stores, which affects Black Fridays. And this is because of the perks online stores offer at the same costs. So, along with the low prices, we can focus on providing a better shopping environment.”
Despite declining sales and enthusiasm from many corners of the nation, some still enjoy the tradition of leaving the dinner table early to stand in the long lines that often accompany Black Friday sales.
“I usually think of shopping as therapy; therefore, I always look forward to Black Friday for the excellent prices,” said Sean Harris, managing editor at Family Destinations Guide, which provides information and reviews of resorts, hotels, and global destinations.
“Black Friday not only allows me to fill my closet with the newest styles at discount prices, but it also makes it possible for me to find some excellent offers on electronics and books,” Harris exclaimed.
“I primarily rely on gadgets to simplify my life as a tech-savvy individual. Therefore, I require everything, from an air purifier to a coffee foaming machine.
“As a result, Black Friday will never lose its appeal to me because I can obtain incredible electronics discounts online.
“The same is true for books, which are a staple of mine and are available in bulk in specially curated best-seller collections every Black Friday Sale.”
Emily Saunders, Chief Revenue Officer for eLuxury, noted that Black Friday always loses its luster during an economic downturn, but she said she’s skeptical about whether those declines are permanent.
“Brick-and-mortar retail is fading, but Black Friday still has a strong heartbeat when economic times are good,” Saunders asserted.
“It recovered with a vengeance once the Great Recession was over, and online shopping had become an established alternative.
“I equate it to network television. Everything aired on major networks is being watched by far fewer people compared to the pre-streaming days, but you’d never know that on Super Bowl Sunday. It still elicits around 100 million viewers each year.”

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