WASHINGTON, (June 30, 2010 - PRNewswire)—The outlook for the restaurant industry softened in May, as the National Restaurant Association's comprehensive index of restaurant activity fell below 100 for the first time in three months.
The Association's Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 99.7 in May, down 0.7 percent from April's level of 100.4. The RPI's May drop came after strong index growth earlier this year and amid sharply increasing wholesale food prices.
"Although the sales and customer traffic indicators softened in May, capital expenditure activity rose to its highest level in nearly two years," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. "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."
Visit the Association's website to view a video of Riehle providing an industry update – www.restaurant.org.