Watch the video of Hudson Riehle, summarizing the June Restaurant Performance Index.
By Derrek J. Hull, Blogger-in-Chief
Strong sales, traffic and optimism drive up the National Restaurant Association’s Restaurant Performance Index by nearly a full percentage point in June. This marks the sixth time in the last seven months the RPI stood above 100, which signifies expansion in key industry indicators.
The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.6 in June, up 0.8 percent from May’s level of 99.9.
“The RPI’s solid improvement in June was due in large part to stronger same-store sales and customer traffic performances, which bounced back from their May declines,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.
Restaurant operators are more optimistic the sales environment will improve in the months ahead, while the outlook for capital spending also remains strong.
The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, and index values below 100 represent a period of contraction for key industry indicators. The RPI consists of two components, the Current Situation Index and the Expectations Index.