NRA's RPI Reached 101.6 in April

Forty-four percent of foodservice operators say they made a capital expenditure for equipment, expansion or remodeling during the past three months.

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The National Restaurant Association's Restaurant Performance Index (RPI) reached 101.6 in April, marking the sixth consecutive month it exceeded 100 thus signaling industry expansion among this collection of economic indicators.

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The Index consists of two components – the Current Situation Index and the Expectations Index. The Current Situation Index, which measures current trends in four industry indicators: (same-store sales, traffic, labor and capital expenditures), stood at 101.0 in April – down 1.0 percent from a level of 102.0 in March.

Here are some key data points from the Current Situation Index:

  • 57 percent of operators reported positive same-store sales between April 2011 and April 2012. And 25 percent of operators reported lower same-store sales in April.
  • 46 percent of restaurant operators reported higher customer traffic levels between April 2011 and April 2012. In comparison, 30 percent of operators reported lower customer traffic levels in April.
  • 44 percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months.

The Expectations Index, which measures restaurant operators' six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 102.2 in April, the eighth consecutive month in excess of 100.

Key data points from the Expectations Index include:

  • 52 percent of restaurant operators expect to have higher sales in six months compared to the same period in the previous year. Only eight percent of restaurant operators expect their sales volume to be lower in six months than it was during the same period in the previous year.
  • 26 percent of restaurant operators plan to increase staffing levels in six months compared to the same period in the previous year, while only 8 percent said they expect to reduce staffing levels in six months.
  • 52 percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six month.
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