Restaurant Performance Index edged up 0.2% in September
The National Restaurant Association’s Restaurant Performance Index (RPI) rose for the second straight month in September, but remained below 100 in contraction territory for the 10th consecutive month. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 98.8 in September, up slightly from a level of 98.6 in August.
Restaurant operators reported a modest improvement in the same-store sales and customer traffic metrics in September, though readings for both indicators remained negative. Looking ahead over the next six months, restaurant operators’ outlook for both sales and the economy remains uncertain.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.6 in September – up 0.4% from August and the second straight monthly gain. Despite the increase, September represented the 12th consecutive month in which the Current Situation Index stood below 100.
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 99.0 – unchanged from last month. Restaurant operators have mixed expectations for sales in the months ahead, while their outlook for the overall economy remains decidedly pessimistic.
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.
Updated 10/31/2024