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FE&SFlashNews — 2005-02-28 — News

February 28, 2005

NRA Index Drops in January

The National Restaurant Association’s Restaurant Performance Index fell in January by 1.4% to 101.7.

The RPI is a monthly study of the health of the U.S. restaurant industry. Based on a survey of both commercial and non-commercial operators, it consists of two portions: the Current Situation Index and the Expectations Index, both of which fell in January.

The Current Situation Index dropped by 2.2% to 100.1. Contributing most greatly to this decline were operators’ same-store sales results. Some 46% of respondents reported higher same-store sales in January compared to the same period a year earlier, down from 65% in December. Approximately 36% reported a drop in same-store sales, up from December’s level of 20%.

Customer traffic levels showed a similar decline during the month, with 38% reporting higher traffic in January vs. the year-ago period, down from 55% who registered an increase in December. At the same time, 40% of operators reported a decline in customer traffic, up from 25% in December.

The Expectations Index fell in January, as well, dropping by 0.6% to 103.4. Some 62% of restaurant operators said they expect same-store sales in six months to be higher than the same period in the previous year, down from 66% in January.

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