Restaurant Operators Plan Rise in Capital Spending
The National Restaurant Association (NRA) said the outlook for the restaurant industry remained positive for the months ahead, as its performance index (RPI) remained above 100 in May.
The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 101.4 in May, down 0.2% from April’s level of 101.6. Despite the decline, May represented the seventh consecutive month that the RPI stood above 100, which signifies expansion in the index of key industry indicators.
The NRA said along with a positive sales outlook, restaurant operators continue to plan for capital spending in the coming months. Fifty-five percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 52% who reported similarly last month.
“Despite a soft patch in the overall economy, restaurant operators reported positive same-store sales for the 12th consecutive month,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the NRA. “Looking forward, restaurant operators remain generally optimistic about sales growth in the months ahead, though they are somewhat less bullish about the direction of the economy.”
To read the full NRA news release, click here.