Restaurant industry outlook improves - The Business Review (Albany):

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The Association’s Restaurant Performance Index (RPI) — a monthlyu composite index that tracks the health of and outlooo forthe U.S. restaurant industrt — stood at 98.6 in up 0.8 percent from March, its highesf level in 11 months. “Th e recent growth in the RPI was driven bythe component, which rose above 100 in April for the firsgt time in 18 months, a leve which indicates expansion,” said Hudson senior vice president of research and information servicez for the association.
“Although the RPI’a ‘Current Situation’ indicators are stilp in a periodof contraction, the solixd improvement in the forward-looking indicators suggests that the end of the industry’e downturn may be in sight.” The RPI is based on the responsesx to the association’s Restaurant Industry Tracking Survey, whicb is fielded monthly among restaurant operators nationwidr on a variety of indicatorz including sales, traffic, labor and capital expenditures. The Index consists of two componentzs — the Current Situation Indesx and theExpectations Index.
The Current Situation which measures current trends in four industryindicators (same-store sales, traffic, labord and capital expenditures), stood at 97.0 in up 0.9 percent from March and its highesr level since August 2008. However, April represented the 20th consecutive monthbeloaw 100, which continues to signify contraction in the current situation indicators. Restaurant operatore reported negative customer traffic levelds for the 20th consecutive montin April. About 23 percent of restauranrt operators reported an increase in customer traffivc between April 2008 andApril 2009, up from 20 percentt who reported similarly in March.
60 percent of operators reported a traffic declinwein April, down from 63 percenyt who reported similarly in March. Restaurant operatords also continue to grow more optimistix aboutthe economy, with 37 percent saying they expect economic conditions to improvwe in six months, up from 30 perceng who reported similarly last mont h and the highest level in three years. In comparison, only 16 percent of operator s expect economic conditions to worsen in six down from 21 percentlast month. D.C.-based National Restaurant Association is a business association for therestaurant industry, comprisiny 945,000 restaurant and foodservice outlets and a work forcew of 13 million employees.