Restaurant Slow Their Plans for Commercial Appliance Purchases
Sep 4, 2013
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Despite dampened restaurant sales and traffic in July 2013, restaurant operators reported positive capital spending on commercial appliances and foodservice equipment, as well as on expansion or remodeling, according to the National Restaurant Association's Restaurant Performance Index (RPI). RPI data showed that 58% of operators made a capital expenditure in July, up from 52% in the June report.
Restaurant operators also have a dampened six-month outlook on their sales and the economy, and that is softening capital spending plans for the same time period. 53% of operators plan to make a capital expenditure in the next six months, from 59% in the June report.
The overall RPI composite index was at 100.7 in July 2013, down 0.6% from June's 101.3. Although down from June, the RPI was above 100 for the fifth month, indicating expansion in index indicators.
One component of the RPI is the Current Situation Index, tracking four industry indicators: same-store sales, traffic, labor, and capital expenditures. The index in July 2013 was at 100.1, down 0.6% from June's 100.7. Although it was the second month in a row showing a decline in the index, July marked the fourth month that the index was above 100.
The second component of the RPI is the Expectations Index, looking at restaurant operators' six-month outlook for same-store sales, employees, capital expenditures, and business conditions. This index in July 2013 was 101.3, down 0.6% from June, putting it at its lowest level in seven months. The association noted that all four indicators remained above 100 for the seventh month.
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