The National Restaurant Association’s Restaurant Performance Index (RPI) declined in April, as restaurant operators were somewhat less optimistic about business conditions in the coming months. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 98.8 in April, down 0.4% from a level of 99.2 in March.
A majority of restaurant operators reported lower same-store sales and customer traffic in April, and most are not anticipating a significant improvement in business conditions in the months ahead. Less than 4 in 10 operators think their sales will be higher in six months, while only 1 in 10 expect the economy to improve.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.1 in April – down slightly from a level of 98.2 in March. The continuation of dampened same-store sales and customer traffic readings is the primary reason why the Current Situation Index remained below 100 in contraction territory for the 7th consecutive month.
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 99.5 – down 0.6% from a level of 100.1 last month. Restaurant operators’ outlook for both sales growth and the economy deteriorated somewhat in recent months.
