• July 1, 2009

Although restaurant operators' reports of current performance remained more or less steady in May, their expectations for the months ahead were less optimistic than in recent months, according to National Restaurant Association indices based on its ongoing industry tracking survey.

The Restaurant Performance Index (RPI), a composite measure of the industry's health, stood at 98.3 in May, down 0.3% versus April. The RPI had risen in each of the previous four months; however, it has remained under 100, which indicates contraction.

The RPI consists of the Current Situation Index and the Expectations Index.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 96.9 in May -- down 0.1% from April. May marked the 21st consecutive month below 100 for this index.

Restaurant operators reported negative same-store sales for the 12th consecutive month in May (60% reported declines, compared to 59% in April). Restaurant operators also reported negative customer traffic levels in May, for the 21st consecutive month (59% reported declines, versus 60% in April).

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 99.6 in May -- down 0.5% from April and its first decline in six months. April's level of 100.2 represented the first time in 18 months that this index surpassed 100, signifying expansion.--Karlene Lukovitz