Published on Tuesday, 01 April 2014
Written by The Editors
Foodservice industry remained in expansion mode despite weather-related customer traffic issues.
The National Restaurant Association's Restaurant Performance Index (RPI) stood at 100.5 in February 2014, indicating the industry remained in expansion mode for the 12th consecutive month.
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 February, down 0.2 percent from January's level of 99.5. Key data points from the Current Situation Index include:
- Forty-four percent of restaurant operators reported a same-store sales gain between February 2013 and February 2014, while 37 percent of operators reported a sales decline.
- Thirty-five percent of restaurant operators reported customer traffic growth between February 2013 and February 2014, while 43 percent of operators reported a traffic decline.
- Forty-four percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last 3 months, the first time in 10 months that less than a majority of operators reported making an expenditure.
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 101.7 in February – down slightly from January's level of 101.8. Key data points from the Expectations Index include:
- Forty percent of restaurant operators expect to have higher sales in six months compared to the same period in the previous year. In contrast, 11 percent of restaurant operators expect their sales volume in 6 months to be lower than it was during the same period in the previous year, while 49 percent expect their sales to remain about the same.
- Fifty-eight percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next 6 months, down slightly from 64 percent who reported similarly last month.