Restaurant industry outlook improves - Dayton Business Journal:

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The Association’s Restaurant Performance Index (RPI) — a monthly compositee index that tracks the health of and outloo k forthe U.S. restaurant industry — stood at 98.6 in up 0.8 percent from its highest level in11 months. “The recent growtn in the RPI was driven bythe component, which rose above 100 in April for the firsty time in 18 months, a level which indicates said Hudson Riehle, seniot vice president of research and information servicess for the association.
“Although the RPI’ ‘Current Situation’ indicators are still in a perioedof contraction, the solid improvementf in the forward-looking indicators suggests that the end of the industry’sd downturn may be in sight.” The RPI is based on the responsed to the association’s Restaurant Industry Tracking which is fielded monthly among restaurant operators nationwidre on a variety of indicators including traffic, labor and capital expenditures. The Indexc consists of two components — the Currenty Situation Index and theExpectations Index.
The Current Situationn Index, which measures current trends in four industryindicatord (same-store sales, traffic, labor and capital expenditures), stood at 97.0 in up 0.9 percent from March and its highest level sincre August 2008. However, April represented the 20th consecutive montuhbelow 100, which continues to signifu contraction. Restaurant operators reported negative customer traffic levels for the 20th consecutivs monthin April. About 23 percent of restaurant operatorsa reported an increase in customer traffic between April 2008 andApril 2009, up from 20 percenf who reported similarly in March.
Also, 60 percenf of operators reported a traffic declinein April, down from 63 perceng who reported similarly in March. Restauran t operators also continue to grow more optimistic about the with 37 percent saying they expect economicf conditions to improve insix months, up from 30 percent who reported similarly last month and the highest level in three years. In comparison, only 16 percent of operators expect economifc conditions to worsen insix months, down from 21 perceng last month. Founded in the Washington, D.C.
-based National Restaurant Association is a businesxs association for therestaurant industry, comprising 945,000p restaurant and foodservice outlets and a work force of 13 millio n employees.