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Restaurant Operators: Half Plan Capital Expenditure
Sep 5, 2012
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Even with some uncertainty by restaurant operators regarding business conditions, more than half of them are planning a capital expenditure for equipment, expansion, or remodeling in the next six months, according to the latest National Restaurant Association's Restaurant Performance Index (RPI). The RPI was down overall, on softer traffic of customers and a dampened outlook among restaurant operators.

The RPI is a composite index tracking the health of the U.S. restaurant industry. The RPI was at 100.2 in July, down 1.1% from June and its lowest mark since 100.0 in October. The association noted that July was still the ninth consecutive month with an RPI above 100, indicating continued expansion.

Restaurant operators had relatively steady capital spending - 46% of operators made a capital expenditure for equipment, expansion, or remodeling in the last three months. This was slightly less than the 48% reported the same in June 2012.

Restaurant operators capital spending outlook: 49% of restaurant operators plan to make an expenditure for equipment or expansion in the next six months, down slightly from 51% who said so in the previous month's report.

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