Restaurant Performance Index rose 0.2% in March
The National Restaurant Association’s Restaurant Performance Index (RPI) remained below 100 in contraction territory for the fourth consecutive month in March. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 99.2 in March, up slightly from a level of 99.0 in February.
Restaurant operators continued to report a net decline in both same-store sales and customer traffic in March. Looking ahead, restaurant operators’ outlook for business conditions became somewhat more optimistic, with four in 10 operators expecting their sales to be higher in six months.
The Current Situation Index, which measures current trends in four industry indicators, stood at 98.2 in March – down slightly from a level of 98.3 in February. March represented the sixth consecutive month in which the Current Situation Index stood below the 100 level in contraction territory, which was due primarily to dampened same-store sales and customer traffic readings.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 100.1 – up 0.4% from a level of 99.7 last month. Restaurant operators are somewhat more optimistic about sales, though they remain much less bullish about the direction of the overall economy.
RPI Methodology
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.
Updated 4/30/2024