Operators' pessimism about the economy and sales growth opportunities drive this restaurant industry barometer to its lowest level in 14 months.
The National Restaurant Association's Restaurant Performance Index experienced a 0.9 percent decline in October, landing at 99.5. In addition to being a 14-month low for this monthly index of restaurant industry economic indicators, a rating of less than 100 indicates the industry is in a period of contraction, according to the NRA.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 99.3 in October, down 0.6 percent from a level of 99.9 in September. Key data points from the Current Situation Index include:
The Expectations Index, which measures restaurant operators' six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 99.7 in October, down 1.2 percent from September. This is the first time in 14 months that the Expectations Index failed to exceed 100. Key data points from the Expectations Index include:
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