The National Restaurant Association’s Restaurant Performance Index (RPI) stood below 100 in contraction territory for the 7th consecutive month in June, as restaurant operators continued to report soft sales and traffic. The RPI – a monthly composite index that tracks the health of the U.S. restaurant industry – stood at 98.9 in June, down 0.2% from a level of 99.1 in May.
A majority of restaurant operators reported lower same-store sales and customer traffic in June, as the first half of 2024 finished like it began. Most restaurant operators are not expecting a significant improvement during the second half of the year, as their outlook for sales and the economy remains mixed.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.1 in June – down 0.6% from May and the third decline in the last four months. June represented the 9th consecutive month in which the Current Situation Index stood below 100 in contraction territory.
The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 99.8 – up 0.2% from a level of 99.6 last month. Despite the gain, restaurant operators remain uncertain about both sales and the overall economy in the coming months.
RPI Methodology
The National Restaurant Association's Restaurant Performance Index (RPI) is a monthly composite index that tracks the health of the U.S. restaurant industry. Launched in 2002, the RPI is released on the last business day of each month.
The RPI is measured in relation to a neutral level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators. The Index consists of two components — the Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), and the Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions).
The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures.
National Restaurant Association - Updated 7/31/2024
