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National Restaurant Association - Despite decline, June RPI remains positive

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Despite decline, June RPI remains positive

As a result of positive sales and traffic and an optimistic outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) remained in expansion territory in June.  The RPI stood at 101.3 in June, down 0.5 percent from May’s level. Despite the decline, June represented the fourth consecutive month that the RPI exceeded the 100 level, which signifies expansion in the index of key industry indicators.

“Although the overall RPI dipped somewhat in June, it remained in positive territory as restaurant operators continued to report gains in both sales and customer traffic,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  “Looking forward, restaurant operators remain generally optimistic about the business environment in the months ahead, with the Expectations Index holding steady at a 12-month high.”

The RPI consists of two components – the Current Situation Index (measuring current trends) and the Expectations Index (measuring restaurant operators' six-month outlook) – and tracks the health of and outlook for the U.S. restaurant industry.

The Current Situation Index stood at 100.7 in June – down 0.9 percent from a level of 101.6 in May.  Despite the decline, it remained above 100 for the third consecutive month. Although a majority of restaurant operators reported higher same-store sales in June, the results were somewhat softer than the solid May results. Operators also reported softer traffic results in June.

The Expectations Index stood at 102.0 in June – holding steady at the 12-month high registered in May.  Each of the four expectations indicators stood above 100 for the sixth consecutive month, which indicates broad-based optimism for business conditions in the months ahead. 

Restaurant operators continue to ramp up plans for capital spending 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. Operators are also trending positive in their outlook for staffing levels in the coming months.  Twenty-five percent of operators plan to increase staffing levels in six months (compared to the same period in the previous year), while 14 percent said they plan to cut positions. 

More details are available at Restaurant.org/RPI and Restaurant TrendMapper (subscription required).


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