RPI Posts May Increase

-- Foodservice Equipment & Supplies, 7/9/2008 11:03:00 AM

The National Restaurant Association’s Restaurant Performance Index posted an increase of 0.2 points in May. The RPI now stands at 98.6.

Based on a survey of domestic foodservice operators, the RPI consists of two main sections: the Current Situation Index and the Expectations Index. An RPI reading of more than 100 indicates overall expansion in the eight industry indicators the index measures.

The RPI’s May increase is due to a 1.0-point rise in the Current Situation Index. Improved same-store sales represent the impetus behind the increase. Some 43 percent of operators said they posted higher same-store sales in May vs. the year-ago period, while 42 percent reported lower same-store sales. In April, those figures stood at 35 percent and 50 percent, respectively. Of particular interest to the E&S side of the foodservice industry is the percentage of operators who said they invested in equipment, expansion or remodeling in the past three months, which increased by 1 percent to 44 percent in the latest survey.

While the Current Situation Index posted a solid gain in the latest RPI report, most of that was offset by a decline in the Expectations Index, which dropped by 0.6 percent to 98.3, its lowest level on record. That fall is due to a weakening of operators’ expected sales volumes in six months and their outlook on the economy in general. Surveyed foodservice operators also plan to scale down their capital expenditures, with just 43 percent saying they plan to invest in equipment, expansion or remodeling in the next six months, down from 47 percent who made the same claim in the last RPI survey.

The May RPI report can be found in PDF format here. The June RPI will be available on Aug. 1.