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Contents At A Glance

FE&SFlashNews2005-08-01 — News

August 1, 2005

RPI Improves in June

The National Restaurant Association's Restaurant Performance Index recorded a level of 102.0 in June, a 0.6% increase from the May level. A reading above 100 indicates the expansion in the nation's restaurant industry.

The RPI is based on two main components: the Current Situation Index and the Expectations Index, both of which rose in June.

The Current Situation Index posted the larger of the two increases, growing by 0.9% to 101.3 during the month—it's strongest level in half a year.

The increase was due in large part to responding operators' same-store sales results. Approximately 58% of those surveyed reported increased same-store sales vs. the year-ago period, while 30% reported a decline in the metric. In May, those figures stood at 50% and 32%, respectively.

Operators also reported stronger customer traffic during the month, with 44% saying their traffic increased year-over-year, vs. 36% who made the same claim last month.

The Expectations Index also increased in June, moving up by 0.2% to 102.7. This is the first gain in the Expectations index in four months. This increase is due almost entirely to operators' capital expenditure plans. According to the study, 61% of surveyed operators plan to make an investment in equipment, expansion or remodeling in the next six months, a three percent improvement from the previous survey.

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