The National Restaurant Association’s Restaurant Performance Index (RPI) fell below 100 in May, 2010 for the first time in three months. The RPI is a monthly composite index that tracks the health and outlook for the restaurant industry, including measures of same-store sales, traffic, capital expenditures and labor. Index levels above 100 indicate a period of expansion, while values below 100 represent contraction for key industry indicators. Even so, operators remain optimistic.
“Although sales and customer traffic indicators softened in May, capital expenditure activity rose to its highest level in nearly two years,” said Hudson Riehle, senior VP of the NRA’s Research and Knowledge Group. “This, along with a continued positive outlook for sales and the overall economy, signals that restaurant operators remain optimistic that business conditions will improve in the months ahead.”