WASHINGTON — The outlook for the restaurant industry remains optimistic going into 2007, despite a modest decline in the National Restaurant Association's comprehensive index of restaurant activity.
The Association's Restaurant Performance Index (RPI) — a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry — stood at 101.1 in November, down 0.1 percent from its October level. However, the RPI remained above 100 for the 43rd consecutive month, a level that represents expansion in the Association's composite index of eight key industry indicators.
"The Restaurant Performance Index remains in a positive position heading into the new year," said Hudson Riehle, senior vice president of Research and Information Services for the Association. "Restaurant operators are optimistic about sales and economic growth in the coming months, as well as prospects for new capital spending."
Restaurant operators reported an overall net positive same-store sales performance for the 40th consecutive month in November. Forty-seven percent of restaurant operators reported a same-store sales gain between November 2005 and November 2006, down from 49 percent who reported a sales gain in October.
Thirty-four percent of operators reported a same-store sales decline in November, down from 37 percent who reported similarly in October.
Customer traffic was relatively flat in November. Thirty-five percent of restaurant operators reported an increase in customer traffic between November 2005 and November 2006, matching the proportion of operators who reported a traffic decline. Thirty percent of operators said traffic in November 2006 was about the same as it was in November 2005.
Forty-seven percent of restaurant operators expect their sales volume in six months to be higher than it was during the same period in the previous year, down slightly from the 49 percent who reported similarly last month. Fourteen percent of operators expect to have lower sales in six months compared to the same period in the previous year, while 39 percent of operators expect their sales to remain about the same.
