NRA’s Performance Index Rose Again In October And Reached Three-Year High

The Restaurant Performance Index maintained by the National Restaurant Association rose for the third month in a row in October, stayed above the 100 level that signals market expansion for the second consecutive month and reached its highest level since September 2007. In other words, it was a pretty good month for the restaurant industry after three years of unprecedented pain.

The overall index reached 100.7, up 0.4 point from September’s reading. The Current Situation Index was up a strong 0.6 point and reached 100 for the first time since August ’07. The Expectations Index also rose 0.3 point to 101.4.

Same-store sales and traffic in the Current Situations Index showed strong gains for the month, up 1.2 and 0.9 points respectively. The labor component rose 0.3 point and the capital expenditure marker, tracking those operators that made a purchase during the past three months, was flat. Forty-two percent of those surveyed said they made a capital purchase, the same number as in September.

In the Expectations Index, those expecting same-store sales to improve during the next six months was up 0.3 point to 103.2. The staffing outlook rose 0.6 point and the expectation for business conditions in six months was flat after a nearly two-point jump in September.

Operators planning to make a capital purchase during the next six months rose 0.2 point, as the percentage of operators expecting to make a capital buy rose to 48% from 47% in September. Both capital spending indicators remain below the 100 tipping point.