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Friday, April 29, 2011

Restaurant Performance Index increases in March

by Calculated Risk on 4/29/2011 11:56:00 AM

This is one of several industry specific indexes I track each month.

Restaurant Performance Index Click on graph for larger image in graph gallery.

The index increased to 101.0 in March (above 100 indicates expansion).

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

From the National Restaurant Association: Restaurant Industry Outlook Gained Strength in March as Same-Store Sales, Customer Traffic Levels Continued to Improve

The National Restaurant 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 101.0 in March, up 0.3 percent from February and the third gain in the last four months. In addition, March represented the sixth time in the last seven months that the RPI stood above 100, which signifies expansion in the index of key industry indicators.

“The March increase in the Restaurant Performance Index was fueled by continued improvements in the same-store sales and customer traffic indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Most notably, the overall Current Situation component of the RPI stood above 100 for the first time in 43 months, which signifies expansion in the indicators of current industry performance.”
...
Restaurant operators continued to report improvements in same-store sales in March. ... Restaurant operators also reported a net increase in customer traffic levels in March.
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Along with an optimistic sales outlook, restaurant operators’ plans for capital spending rose to its highest level in 41 months.
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For the sixth consecutive month, restaurant operators reported a positive outlook for staffing gains in the months ahead.
Increased traffic and sales, and a positive outlook for capital spending and hiring ... another solid report.

Earlier:
Consumer Sentiment increases slightly in April compared to March
Personal Income and Outlays Report for March