Restaurant Performance Index declined 0.7% in October
The National Restaurant Association’s Restaurant Performance Index (RPI) declined for the third consecutive month in October, due primarily to softer readings in the current situation indicators. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 99.7 in October, down 0.7% from a level of 100.4 in September.
Restaurant operators reported a net decline in both same-store sales and customer traffic in October, though that was partially influenced by stronger comparisons in October 2022. Looking ahead, restaurant operators are slightly more optimistic about business conditions in the coming months.
The Current Situation Index, which measures current trends in four industry indicators, stood at 98.9 in October – down 1.9% from a level of 100.8 in September. October represented the second time in the last three months that the Current Situation Index was below 100 in contraction territory.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 100.4 – up 0.4% from a reading of 100.0 last month. Restaurant operators have a modestly net positive outlook for sales in the coming months, though they remain pessimistic about 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 11/30/2023