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Restaurants Plan Capital Expenditures Even As Industry Index Stays Flat
Aug 31, 2010
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As a result of soft sales and traffic levels and a deteriorating outlook among restaurant operators, the National Restaurant Association’s index of restaurant activity remained essentially flat in July. The Restaurant Performance Index (RPI), a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry, stood at 99.4 in July, down 0.1% from June and its fourth consecutive decline. In addition, the RPI stood below 100 for the third consecutive month, which signifies contraction in the index of key industry indicators.

But restaurant operators reported relatively steady capital spending levels in recent months, with 45% of operators said they made a capital expenditure for equipment, expansion, or remodeling during in last three months, up slightly from 43% who reported similarly last month.

Operators also reported a slight uptick in their plans for capital expenditures, with 43% of restaurant operators planning to make a capital expenditure for equipment, expansion, or remodeling in the next six months, up slightly from 41% who reported similarly last month.

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