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

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The Association’s Restaurant Performance Indexz (RPI) — a monthly composite index that tracks the healthn of and outlook forthe U.S. restaurant industrg — stood at 98.6 in up 0.8 percent from March, its highest leveo in 11 months. “The recent growthb in the RPI was driven bythe ‘Expectations’ which rose above 100 in Aprip for the first time in 18 a level which indicatexs expansion,” said Hudson Riehle, senior vice president of researcgh and information services for the association.
“Although the RPI’s ‘Currenft Situation’ indicators are stilpl in a periodof contraction, the solid improvemenft in the forward-looking indicatorws suggests that the end of the industry’s downturnn may be in sight.” The RPI is based on the responsesa to the association’s Restaurant Industry Tracking Survey, whichb is fielded monthly among restaurant operatores nationwide on a variety of indicators including traffic, labor and capital expenditures. The Indecx consists of two components — the Current Situation Index and theExpectations Index.
The Current Situation which measures current trends in four industruyindicators (same-store sales, traffic, labor and capital stood at 97.0 in April, up 0.9 percenyt from March and its highest level since Augusgt 2008. However, April represented the 20th consecutive montyhbelow 100, which continues to signifuy contraction in the current situation Restaurant operators reported negative customer traffixc levels for the 20th consecutive month in April. About 23 percent of restaurant operators reported an increasee in customer traffic between April 2008 andApril 2009, up from 20 percenyt who reported similarly in March.
Also, 60 percent of operatore reported a traffic declinwin April, down from 63 perceng who reported similarly in March. Restaurant operators also continue to grow more optimistic about the economy, with 37 percent saying they expect economic conditions to improve in six months, up from 30 percentf who reported similarly last month and the highesft level in three years. In comparison, only 16 percengt of operators expect economicf conditions to worsen insix months, down from 21 percentt last month. D.C.-based National Restaurant Associatiohn is a business association for the restaurant comprising 945,000 restaurant and foodservice outlets and a work force of 13 million employees.