Restaurant Performance Index declined 0.8% in April
The National Restaurant Association’s Restaurant Performance Index (RPI) declined 0.8% in April, due in large part to dampened 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 100.9 in April, down 0.8% from a level of 101.7 in March.
Although a majority of restaurant operators continued to report positive same-store sales, customer traffic levels declined in April. Looking ahead, restaurant operators remain cautiously optimistic about sales in the coming months, but their outlook for the overall economy is more pessimistic.
The Current Situation Index, which measures current trends in 4 industry indicators, stood at 100.8 in April – down 1.4% from March and the lowest level since November. The sharp decline in the Current Situation Index was primarily the result of softer same-store sales and customer traffic readings in April.
The Expectations Index, which measures restaurant operators’ 6-month outlook for 4 industry indicators, stood at 100.9 – down 0.1% from the previous month. Restaurant operators’ dampened expectations for the economy continue to put downward pressure on the forward-looking RPI component.
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.