November's Restaurant Performance Index Declines to 99.0
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This months Restaurant Performance Index, presented by the National Restaurant Association on the last business day of every month, seems to have returned quite disappointing results. The index is now at its lowest level in more than four years, marking the first time in RPI history that the Expectations sub-index has moved below the steady-state level of 100.
The RPI is set-up in order to track the outlook for the U.S. restaurant industry and is based on responses from the National Restaurant Association's Restaurant Industry Tracking Survey. The survey uses four indicators in order to track performance: same store sales, traffic, labor and capital expenditures and breaks the results into two components - the Current Situation Index and the Expectations Index.
Overall, the RPI stood at 99.0 in November, down 1% from October. Within the Current Situation component, all metrics declined, bringing this part of the index down to 98.7 in November, a 1.2% drop from last month. The Expectations section also showed a decline - about 0.8% from October - to 99.2. Notably, only about 16% of restaurant operators expect economics conditions to improve in the next six months, down from 19% in October, while 41% of operators expect macro conditions to get worse over the next six months, up from 40% last month.
The RPI is set-up in order to track the outlook for the U.S. restaurant industry and is based on responses from the National Restaurant Association's Restaurant Industry Tracking Survey. The survey uses four indicators in order to track performance: same store sales, traffic, labor and capital expenditures and breaks the results into two components - the Current Situation Index and the Expectations Index.
Overall, the RPI stood at 99.0 in November, down 1% from October. Within the Current Situation component, all metrics declined, bringing this part of the index down to 98.7 in November, a 1.2% drop from last month. The Expectations section also showed a decline - about 0.8% from October - to 99.2. Notably, only about 16% of restaurant operators expect economics conditions to improve in the next six months, down from 19% in October, while 41% of operators expect macro conditions to get worse over the next six months, up from 40% last month.
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