The National Restaurant Association’s Restaurant Performance Index (RPI) hit 102.7 in July, an increase of 0.7 percent from June. This marks the RPI’s first gain in three months. Any reading in excess of 100 means a period of expansion among the index of key restaurant industry indicators.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 103.7 in July – up 1.2 percent from June. Key data points from the current situation index include:
- Seventy-three percent of restaurant operators reported a same-store sales gain between July 2014 and July 2015, up 9 percent from June. In comparison, 16 percent of operators reported a same-store sales decline in July.
- Fifty-nine percent of restaurant operators reported an increase in customer traffic between July 2014 and July 2015, up 12 percent from June. Twenty-three percent of operators said their traffic declined in July, down from 28 percent in June.
- Seventy-two percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months.
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 July – up slightly from a level of 101.5 in June. 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).
- Sixteen percent of restaurant operators said they expect economic conditions to improve in 6 months, while 21 percent expect conditions to worsen.
- Sixty-six percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 59 percent who reported similarly last month.