Yes — by a wide margin. Your primary business category is one of the strongest factors Google relies on to decide when and where to show your business, and it's also one of the most commonly mischosen fields by business owners.
Why This Field Matters So Much
When someone searches "Italian restaurant near me," Google matches search intent against the registered primary category of nearby businesses, not just the words in your name or description. A business registered under an overly generic category like "Restaurant" alone will lose out to a competitor precisely registered as "Italian Restaurant" whenever the search is specific.
A Common Mistake: Choosing a Broad Category to "Widen" Visibility
Many assume a generic category opens up broader search reach, but the opposite is usually true. A precise category makes you the best match for specific searches, while a generic one makes you a weak match across almost every search — never the winner in any of them.
Secondary Categories Exist for a Reason
Google allows additional secondary categories alongside your primary one. Use them to genuinely cover additional real aspects of your business, but don't rely on them to compensate for an inaccurate primary category — the primary category always carries the most ranking weight.
How to Review Your Current Choice
Look up your top-ranking competitors for your most important keyword and note their primary category (usually visible in their profile details). Compare it to yours, and adjust if you find a clear mismatch.
Conclusion
Primary category isn't an administrative detail — it's a strategic decision that directly affects who sees you and when. Review it as carefully as you'd review your business name and location.