- Published on Monday, 01 October 2012
- Written by The Editors
Restaurant industry posts first performance increase in five months, according to the National Restaurant Association.
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The National Restaurant Association's Restaurant Performance Index (RPI) stood at 100.6 in August, up 0.4 percent from July. This also represents the first increase in 5 months and the 10th consecutive month the index exceeded 100, signaling expansion among key foodservice industry economic indicators.
The Index consists of two components – the Current Situation Index and the Expectations Index.
The Current Situation Index stood at 100.6 in August – up 0.8 percent from July's level of 99.8. Key data points from the Current Situation Index include:
- Sixty-one percent of restaurant operators reported a same-store sales gain between August 2011 and August 2012, up from 53 percent who reported positive sales in July. Only 25 percent of operators reported lower same-store sales in August, down 11 points from July.
- Forty-seven percent of restaurant operators reported higher customer traffic levels between August 2011 and August 2012, up from 35 percent who reported positive traffic in July. Only 32 percent of operators reported lower customer traffic levels in August, a 14 point improvement over July.
- Forty-one percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, down from 46 percent who reported similarly last month.
The Expectations Index stood at 100.7 in August – unchanged from July's level. 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), compared to 42 percent who reported similarly last month. Only 12 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, down slightly from 15 percent last month.
- Forty-four percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next 6 months, down from 49 percent who reported similarly last month.