Restaurant Performance Index increased 1.6% in October
The National Restaurant Association’s Restaurant Performance Index (RPI) rose sharply in October, due in large part to a solid improvement in restaurant operators’ outlook for business conditions. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 100.4 in October, up 1.6% from a level of 98.8 in September.
The RPI’s current situation indicators improved in October, with restaurant operators reporting a net increase in same-store sales for the first time since December 2023. Restaurant operators also grew significantly more optimistic about future business conditions during the November survey period.
The Current Situation Index, which measures current trends in four industry indicators, stood at 99.5 in October – up 0.9% from September and the third consecutive monthly gain. Although the Current Situation Index remained below 100 in October, restaurant operators reported an improvement in both same-store sales and customer traffic.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 101.2 – the first time in seven months that the forward-looking component surpassed 100. Restaurant operators are significantly more optimistic about sales growth and the 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 11/27/2024