WASHINGTON, Nov. 30, 2015 /PRNewswire/ -- Driven by
stronger same-store sales and a more optimistic outlook among
restaurant operators, the National Restaurant Association's
Restaurant Performance Index (RPI) posted a moderate
gain in October. The RPI – a monthly composite index that
tracks the health of and outlook for the U.S. restaurant industry –
stood at 102.1 in October, up 0.7 percent from a level of 101.4 in
September. In addition, October represented the
32nd consecutive month in which the RPI stood above 100,
which signifies expansion in the index of key industry
indicators.
For the full outlook on the restaurant industry, view the
Restaurant Performance Index here:
http://www.restaurant.org/RPI.
"The October gain in the RPI was buoyed by broad-based
improvements in the current situation indicators," said
Hudson Riehle, senior vice president
of the Research and Knowledge Group for the Association. "In
addition, restaurant operators are somewhat more optimistic about
both sales growth and the economy in the months ahead."
The RPI is constructed so that the health of the restaurant
industry is measured in relation to a steady-state 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 and the
Expectations Index.
Current Situation Index
The Current Situation Index, which measures current trends in
four industry indicators (same-store sales, traffic, labor and
capital expenditures), stood at 102.5 in October – up 1.2 percent
from September and the highest level in three months. In
addition, the Current Situation Index remained above 100 for the
20th consecutive month, which signifies expansion in the
current situation indicators.
- Same-store sales: A majority of restaurant operators
reported higher same-store sales for the 20th
consecutive month, with October's results representing the
strongest performance since July. Sixty-one percent of
restaurant operators reported a same-store sales gain between
October 2014 and October 2015, up from 51 percent who reported
higher sales in September. In comparison, 22 percent of
operators reported a same-store sales decline in October, down from
27 percent in September.
- Customer traffic: While sales levels improved in
October, the customer traffic results were similar to the August
and September readings. Forty-one percent of restaurant
operators reported an increase in customer traffic between
October 2014 and October 2015, down slightly from 42 percent in
September. Thirty-six percent of operators said their traffic
declined in October, compared to 38 percent in September.
- Capital spending: Restaurant operators also continued to
report healthy capital spending activity in October.
Seventy-six percent of operators said they made a capital
expenditure for equipment, expansion or remodeling during the last
three months, which marked the 13th consecutive month in
which a majority of operators reported making an expenditure.
Expectations Index
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
101.6 in October – up slightly from a level of 101.4 in
September. October represented the 36th
consecutive month in which the Expectations Index stood above 100,
which indicates restaurant operators remain generally optimistic
about business conditions in the coming months.
- Sales outlook: Restaurant operators reversed a downward
trending sales outlook with somewhat more optimistic
expectations. Forty percent of restaurant operators expect to
have higher sales in six months (compared to the same period in the
previous year), up from 35 percent who reported similarly last
month. Meanwhile, only six percent of restaurant operators
expect their sales volume in six months to be lower than it was
during the same period in the previous year, down from 12 percent
last month.
- Overall economy: Similarly, restaurant operators are
somewhat more optimistic about the direction of the overall
economy. Nineteen percent of restaurant operators said they
expect economic conditions to improve in six months, while only 9
percent expect conditions to worsen. This represented the
strongest net positive reading in five months.
- Capital expenditure planning: Looking forward, a
majority of restaurant operators said they are planning for capital
expenditures in the months ahead. Fifty-nine percent of
restaurant operators plan to make a capital expenditure for
equipment, expansion or remodeling in the next six months, down
slightly from 62 percent who reported similarly last month.
About the RPI
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. The full report and video summary are available
online at Restaurant.org/RPI.
The RPI is released on the last business day of each month, and
a more detailed data and analysis can be found on Restaurant
TrendMapper, the Association's subscription-based web site that
provides detailed analysis of restaurant industry trends.
Founded in 1919, the National Restaurant Association is the
leading business association for the restaurant industry, which
comprises 1 million restaurant and foodservice outlets and a
workforce of 14 million employees. We represent the industry in
Washington, D.C., and advocate on
its behalf. We operate the industry's largest trade show (NRA
Show in Chicago); leading
food safety training and certification program (ServSafe); unique
career-building high school program (the NRAEF's ProStart); as
well as the Kids LiveWell program promoting healthful
kids' menu options. For more information,
visit Restaurant.org and find us on
Twitter @WeRRestaurants, Facebook and YouTube.
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SOURCE National Restaurant Association