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FE&SFlashNews — 2005-01-03 — News

January 3, 2005

NRA Index Declines In November

The National Restaurant Association’s Restaurant Performance Index fell by 0.6% in the month of November. It now stands at 103.2.

The index is a monthly measurement of the health of the U.S. restaurant industry. Based on a survey of operators, it has two main components: the Expectations Index and the Current Situation Index.

The November decline is due to a drop in the Current Situation Index, which fell by 1.4% compared to the previous month.

All four of the Current Situation Index’s components (same-store sales, customer traffic, labor and capital expenditures) declined in November. Customer traffic results fell the most precipitously, with just 35% of operators reporting higher traffic in November 2004 vs. November 2003. In October, 45% of operators reported a greater amount of customer traffic year-over-year.

Operators’same-store sales results fell noticeably, as well. In November, 47% of surveyed operators reported higher year-over-year same-store sales, down from 55% in October.

While November’s Current Situation Index reflected mostly negative news, the Expectations Index increased in the latest report, rising by 0.3% to 103.7.

According to the study, 55% of surveyed operators said they expect business conditions in six months to be better than they are now, up by 3% from the previous RPI report. The percentage of operators planning to make a capital expenditure on equipment, expansion or remodeling fell slightly, however, with 63% of operators expressing such an intention, compared to 65% the previous month.

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