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SOCIAL SCIENCE
15 Dec 2024
Black-Owned Restaurants in US See Surge in Food Delivery After Black Lives Matter Movement
Food delivery orders from Black-owned restaurants surged by 38.7%, researchers linked this to a national wave of racial solidarity and targeted support from delivery platforms
Professor Sumit Agarwal
NUS Business School, Sustainable and Green Finance Institute
SOCIAL SCIENCE
15 Dec 2024
Black-Owned Restaurants in US See Surge in Food Delivery After Black Lives Matter Movement
Food delivery orders from Black-owned restaurants surged by 38.7%, researchers linked this to a national wave of racial solidarity and targeted support from delivery platforms
Professor Sumit Agarwal
NUS Business School, Sustainable and Green Finance Institute
Social movements typically inspire collective efforts to uplift marginalised groups. This was observed following the Black Lives Matter (BLM) movement, which gained international attention following the murder of George Floyd in 2020. It influenced peoples’ actions to support Black communities and Black-owned businesses.
To study how the BLM movement had an impact on Black-owned restaurants, Professor Sumit Agarwal and colleagues from NUS Business School analysed food order data from one of the largest food delivery platforms in the US, identifying over 700 Black-owned restaurants across the country. The control group was represented by nearby non-Black-owned restaurants in the same delivery zones as the Black-owned restaurants. In response to the BLM movement, the platform had introduced an app feature in 2020 highlighting Black-owned restaurants on its homepage.
Black Lives Matter is a social movement dedicated to fighting racism and police brutality against Black people.
"The Black Lives Matter movement was one of the largest social movements in U.S. history, sparking global conversations on racial justice. We saw its presence everywhere—BLM logos displayed in the windows of local homes, corporations pledging support, and social media amplifying calls to action. As economic researchers, we wanted to go beyond anecdotal observations and rigorously examine whether this movement translated into tangible economic support for marginalised communities,” said Prof Agarwal.
Data published in
Nature Human Behaviour
revealed that food delivery orders from Black-owned restaurants rose by 38.7%, and the total spending on these orders also grew by 36.2% compared to non-Black-owned restaurants.
The researchers attributed the increase in food orders and spending to a national outpouring of racial sympathy after Floyd’s murder and strategic platform support. This increase was immediate and lasted for at least 140 days.
Boosted by food delivery platform but not the only factor
A part of the increase in orders and spending could be associated to the delivery platform’s new feature, which highlighted Black-owned restaurants, helping boost public awareness and customer support. Although, researchers say it was not the only reason for the increase in orders.
Before the feature launched, food orders at Black-owned restaurants had already increased by 11%, suggesting that public sympathy was already growing. Once the feature was launched, orders rose further by another 27.1%, indicating that the feature acted as an accelerator, further increasing customer support.
Who’s supporting
Prior to the BLM movement Black-owned restaurants typically received fewer orders and earned less revenue than nearby non-Black-owned restaurants. They were also more likely to attract customers from Black-majority neighbourhoods.
However, after Floyd's death and the subsequent rise in BLM movement, customers in white-majority neighbourhoods increased their support more than those in Black-majority neighbourhoods, with a 46.3% increase in orders compared to 31%.
Political leanings also influenced support with customers in liberal counties increasing their spending at Black-owned restaurants more than those in conservative counties.
Other findings showed that support from remote areas increased (51.5%) compared to local customers (27.1%), and support rose amongst both new and existing customers. Finally, the increase in food orders from Black-owned restaurants was driven by additional demand rather the reallocation of orders from other restaurants, as orders from nearby non-Black-owned restaurants did not decrease.
Harlem Shake in New York City is among the Black-owned restaurants highlighted on the food delivery platform in the study.
Support starts to fade
The initial surge in support was not sustained in the long term. As the immediate sentiment around BLM diminished after 140 days, orders began to decrease. The surge in orders drop to 26% by 220 days. However, even with this decrease, the orders were still higher than before the BLM movement, indicating that the BLM movement's impact continued to have a lasting effect.
This research reflects the consumer behaviour of younger consumers in major US cities, where online food delivery is prevalent, and its findings may not fully generalise to other demographics or represent all social movements. Nevertheless, it highlights how social movements can mobilise collective community action, with corporate organisations like food delivery platform playing a supporting role.
References
Agarwal, S., Lin, Y., & Zeng, J. (2024). Social movements boosted online orders for US Black-owned restaurants after the murder of George Floyd.
Nature Human Behaviour
, 1-9.
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Sumit Agarwal Black-owned restaurants in US see surge in food delivery after Black Lives Matter movement