The National Restaurant Association’s Restaurant Performance Index (RPI) rose for the third consecutive month in May, as sales and customer traffic readings rebounded from dampened levels in recent months. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 100.1 in May, up 0.4% from a level of 99.7 in April.
A majority of restaurant operators reported higher same-store sales in May, while customer traffic readings also improved from recent months. However, operators’ outlook for sales in the months ahead remains uncertain, while their assessment of the overall economy is considerably less bullish.
The Current Situation Index, which measures current trends in four industry indicators, stood at 100.4 in May – up 0.9% from April and the highest reading since January. May also represented the first time since January that the current situation component stood above 100 in expansion territory.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 99.9 – down 0.2% from the previous month. Restaurant operators are cautiously optimistic about sales gains in the coming months, though their outlook for the overall economy remains largely pessimistic.
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.
Articles on The Cattle Range are published because of interesting content but don't necessarily reflect the views of The Cattle Range.
