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Wednesday, September 30, 2009

Restaurants: 24th Consecutive Month of Contraction

by Calculated Risk on 9/30/2009 02:11:00 PM

Note: Any reading below 100 shows contraction for this index.

From the National Restaurant Association (NRA): Restaurant Performance Index Declined in August as Same-Store Sales and Customer Traffic Slipped

Restaurant industry performance softened in August, as the National Restaurant Association’s comprehensive index of restaurant activity posted a modest decline. The Association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 97.9 in August, down 0.2 percent from July and its third decline in the last four months.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 96.0 in August – down 0.9 percent from July and its sharpest decline in nearly a year. In addition, August represented the 24th consecutive month below 100, which signifies contraction in the current situation indicators.

The sharp decline in Current Situation Index was the result of deteriorating sales and traffic levels in August.

emphasis added
Restaurant Performance Index Click on graph for larger image in new window.

Unfortunately the data for this index only goes back to 2002.

The restaurant business is still contracting ...

No Green Shoots for you!