Restaurant Performance Index rose 0.8% in October
The National Restaurant Association’s Restaurant Performance Index (RPI) posted a moderate gain in October, as restaurant operators reported improving same-store sales and customer traffic readings. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 101.9 in October, up 0.8% from a level of 101.0 in September.
Current situation indicators improved in October, with restaurant operators reporting their strongest same-store sales performance since June. Looking ahead, restaurant operators are slightly more optimistic about business conditions in the months ahead.
The Current Situation Index, which measures current trends in four industry indicators, stood at 102.3 in October – up 0.7% from September and the third consecutive monthly increase. Nearly two-thirds of restaurant operators reported higher same-store sales in October, while customer traffic readings were a mixed bag.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 101.5 – up 0.9% from the previous month. Although restaurant operators remain pessimistic about the direction of the economy, they are somewhat more bullish about their sales prospects in the coming months.
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.