More Than Half of Restaurant Operators Plan Equipment/Remodeling Expenditures in Next 6 Months Mar 2, 2012

Printable format  Email this Article  Search

The outlook for the restaurant industry is positive for the coming months, with the National Restaurant Association’s Restaurant Performance Index (RPI) well above 100 in January 2012. The RPI was 101.3 in January, down from December’s 102.2 – down but still above the 100, which signifies expansion in the index of key industry indicators.

“Although the Restaurant Performance Index dipped somewhat from December’s nearly six-year high, it remained solidly in positive territory,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Restaurant operators reported positive same-store sales for the eighth consecutive month, and a majority of them expect business to continue to improve in the months ahead.”

The Current Situation Index was 100.6 in January – down 1.5% from December’s seven-year high of 102.1.

The Current Situation Index measures current trends in four industry indicators:
• same-store sales
• traffic
• labor
• capital expenditures

Restaurant operators reported positive same-store sales for the eighth consecutive month in January, as well as positive customer traffic results.

Restaurant operators reported somewhat lower capital spending levels in January. 42% of operators said they made a capital expenditure for equipment, expansion, or remodeling in the last three months - the lowest level in 10 months.

The Expectations Index, measuring restaurant operators’ six-month outlook, was 102.1 in January – essentially unchanged from December’s level of 102.3. January was the fifth consecutive month that the Expectations Index stood above 100, representing an optimistic outlook among restaurant operators.

The Expectations Index measures restaurant operators’ six-month outlook for four industry indicators:
• same-store sales
• employees
• capital expenditures
• business conditions

Restaurant operators continue to plan for capital spending, with 50% of operators planning to make a capital expenditure for equipment, expansion, or remodeling in the next six months. This is the second consecutive month with at least half of operators planning to make capital investments.

Back to Daily News