Due to a softer outlook among restaurant operators for sales growth and the economy, the National Restaurant Association’s Restaurant Performance Index (RPI) declined for the third consecutive month. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.5 in August, down 0.2 percent from July’s level of 100.7. Despite the recent declines, the RPI remained above 100 for the sixth consecutive month, which signifies expansion in the index of key industry indicators.
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| NRA Restaurant Performance Index Values Greater than 100=Expansion Values Less than 100=Contraction |
“The August
decline in the RPI was due almost entirely to a dip in the expectations
indicators, with restaurant operators becoming less bullish about sales growth and
the economy in the months ahead,” said Hudson Riehle, senior vice president of
the Research and Knowledge Group for the Association.
“In
contrast, operators reported positive same-store sales and customer traffic
levels in August, and a majority of operators reported capital expenditures for
the fourth consecutive month,” Riehle added.
The RPI is constructed so that the health of the restaurant industry is
measured in relation to a steady-state level of 100. Index values above 100
indicate that key industry indicators are in a period of expansion, while index
values below 100 represent a period of contraction for key industry indicators.
The Index 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 100.7 in
August – up 0.6 percent from July and the first increase in three months.
In addition, the Current Situation Index stood above 100 for the fifth
consecutive month, which signifies expansion in the current situation
indicators.
