The National Restaurant Association’s Restaurant Performance Index (RPI) registered a modest decline in July, as restaurant operators remain uncertain about business conditions in the months ahead. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 99.7 in July, down 0.3% from a level of 100.0 in June.
July marked the continuation of a recent trend in consumer activity, with restaurant operators reporting higher same-store sales but lower foot traffic. Looking forward, restaurant operators’ sentiment remains cautious amid continued policy and economic uncertainties.
The Current Situation Index, which measures current trends in four industry indicators, stood at 99.7 in July – down 0.2% from a level of 100.0 in June. Restaurant operators reported a net increase in same-store sales for the fourth consecutive month in July, but customer traffic readings remained negative for the sixth straight month.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators, stood at 99.7 – down 0.3% from the previous month. Restaurant operators have a mixed outlook for sales in the coming months, while their expectations for the overall economy remain decidedly negative.
RPI Methodology
The National Restaurant Association's Restaurant Performance Index (RPI) is a monthly composite index that tracks the health of the U.S. restaurant industry. Launched in 2002, the RPI is released on the last business day of each month.
The RPI is measured in relation to a neutral level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators. The Index consists of two components — the Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), and the Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions).
The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures.
