Restaurant Performance Index rose 0.1% in August
The National Restaurant Association’s Restaurant Performance Index (RPI) remained essentially unchanged in August, which reflected continued uncertainty about business conditions in the months ahead. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 100.9 in August, up slightly from a level of 100.8 in July.
Although restaurant operators reported a net increase in same-store sales in August, they registered a decline in customer traffic levels for the third consecutive month. Looking ahead, restaurant operators are somewhat more positive about sales growth in the coming months, but they remain pessimistic about the direction of the economy.
The Current Situation Index, which measures current trends in four industry indicators, stood at 100.9 in August – up 0.4% from July and the first increase in three months. The August increase was due to an improvement in same-store sales readings, though customer traffic levels remained below year-ago levels.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 100.9 – down 0.1% from the previous month. Restaurant operators had a net negative outlook for the economy for the seventh consecutive month.
The National Restaurant Association's Restaurant Performance Index (RPI) is a monthly composite index that tracks the health of the U.S. restaurant industry. Launched in 2002, the RPI is released on the last business day of each month.
The RPI is measured in relation to a neutral 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, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), and the Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions).
The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures. Restaurant operators interested in participating in the tracking survey: contact Bruce Grindy.
For more detailed analysis of the RPI and Industry Tracking Survey data, see Restaurant TrendMapper.