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Restaurant Performance Index Hit a Four-Month High in October

Same-store sales and customer traffic levels improved; operators are somewhat more bullish about sales growth and the economy.

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The National Restaurant Association's Restaurant Performance Index (RPI) reached 100.9 in October, its highest level in four months. The monthly composite index increased 0.7 percent compared to September.

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"The RPI's October gain was driven by broad-based gains in the index components, most notably solid improvements in same-store sales and customer traffic," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association.

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The RPI consists of two components – the Current Situation Index and the Expectations Index.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.9 in October. Key data points from the Current Situation Index include:

  • Fifty-four percent of restaurant operators reported a same-store sales gain between October 2012 and October 2013, up from 41 percent who reported higher sales in September. Only 30 percent of operators reported a decline in same-store sales in October, down from 40 percent in September.
  • Forty-three percent of restaurant operators reported higher customer traffic levels between October 2012 and October 2013, up from 33 percent who reported a traffic gain in September. Meanwhile, 39 percent of operators reported a decline in customer traffic in October, down from 44 percent in September.
  • Fifty-seven percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, the sixth consecutive month in which a majority of operators reported expenditures.

The Expectations Index stood at 100.9 in October – up from 100.5 in September. Key data points from the Expectations Index include:

  • Thirty-six percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), up slightly from last month's 34 percent.
  • Fifty-three percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months.

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