Restaurant Performance Index falls to lowest level in 14 months
Due in large part to restaurant operators' dampened outlook for sales growth and the economy, the National Restaurant Association's Restaurant Performance Index (RPI) fell sharply in October. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 99.5 in October, down 0.9 percent from September. In addition, October represented the first time in 14 months that the RPI fell below 100, which signifies contraction in the index of key industry indicators.
"Although restaurant operators overall continued to report positive same-store sales in October, their short-term outlook for sales growth and the economy is decidedly more pessimistic," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. "Nearly two out of five restaurant operators expect business conditions to worsen in the next six months, which is double the proportion that expect conditions to improve."