Foodservice industry remains in expansion mode despite a minor decline in this index of key industry indicators.
The National Restaurant Association’s Restaurant Performance Index hit 101.3 in June, a modest decline from May’s level of 102.1. Scores in excess of 100 signify expansion in the index of key industry indicators.The National Restaurant Association attributes the modest decline to softer customer traffic levels.
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 June — down 1.1 percent from May, its first decline in four months. Key data points from the Current Situation Index include:
- Fifty-five percent of restaurant operators reported a same-store sales gain between June 2013 and June 2014, down from 65 percent who reported similarly in May. In comparison, 27 percent of operators reported a same-store sales decline in June, up from 19 percent who reported similarly in May.
- Thirty-nine percent of restaurant operators reported an increase in customer traffic levels between June 2013 and June 2014, down from 47 percent who reported higher traffic in May. Meanwhile, 41 percent of operators said their customer traffic declined in June, up from 29 percent who reported similarly in May.
- Fifty-three percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, matching the proportion who reported similarly last month.
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 June — down from levels of 102.2 in both April and May. Key data points from the Expectations Index include:
- Forty-four percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year). Only 10 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.
- Fifty-nine percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down slightly from 62 percent who reported similarly last month.