Restaurant Performance Index increased 1.2% in July
The National Restaurant Association’s Restaurant Performance Index (RPI) registered a healthy gain in July, driven by broad-based improvements in both the current situation and forward-looking indicators. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 101.4 in July, up 1.2% from a reading of 100.2 in June.
July was the second consecutive monthly increase and represented the highest RPI reading since March. The index was bolstered by stronger same-store sales and an increasingly optimistic outlook for sales growth in the months ahead.
The Current Situation Index, which measures current trends in 4 industry indicators, stood at 101.2 in July – up 1.5% from a level of 99.7 in June. July’s healthy improvement followed two consecutive months of Current Situation Index readings below 100, which signifies contraction.
The Expectations Index, which measures restaurant operators’ 6-month outlook for 4 industry indicators, stood at 101.6 – the strongest reading in five months. While a majority of restaurant operators expect to have higher sales in six months, only one in 10 think overall economic conditions will improve during the same period.
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.