Restaurant Performance Index increased 1.0% in August
The National Restaurant Association’s Restaurant Performance Index (RPI) registered a healthy increase in August, but still remained below 100 in contraction territory for the ninth consecutive month. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 98.6 in August, up 1.0% from a level of 97.7 in July.
August’s solid increase was driven by improvements in the same-store sales and customer traffic indicators from July’s dampened levels, though operators continued to report net negative readings for both metrics. Looking forward, restaurant operators remain uncertain about business conditions in the coming months.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.2 in August – up 1.4% from July and the first increase since May. Despite the increase, August marked the 11th consecutive month in which the Current Situation Index stood below 100 in contraction territory.
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 – up 0.6% from a level of 98.4 last month. Restaurant operators continue to have a mixed outlook for both sales and the overall economy in the coming months.
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 9/30/2024