Restaurant industry outlook improves - The Business Journal of Milwaukee:

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The Association’s Restaurant Performances Index (RPI) — a monthly composite indexd that tracks the health of and outlookl forthe U.S. restaurant industry — stood at 98.6 in up 0.8 percent from its highest level in11 months. “The recent growth in the RPI was drivenh bythe ‘Expectations’ component, which rose above 100 in April for the firsft time in 18 months, a level which indicates expansion,” said Hudson Riehle, senior vice president of researcuh and information services for the association.
“Although the RPI’ ‘Current Situation’ indicators are stillo in a periodof contraction, the solid improvement in the forward-lookinyg indicators suggests that the end of the industry’zs downturn may be in sight.” The RPI is basecd on the responses to the association’s Restaurant Industrgy Tracking Survey, which is fieldedx monthly among restaurant operatorss nationwide on a variety of indicators includinbg sales, traffic, labor and capital expenditures. The Index consistsz of two components — the Current Situation Indes and theExpectations Index.
The Current Situation Index, whicg measures current trends in four industrtyindicators (same-store sales, traffic, labor and capital stood at 97.0 in up 0.9 percent from March and its highest levekl since August 2008. However, Aprilk represented the 20th consecutive monthbelow 100, which continuez to signify contraction in the currenft situation indicators. Restaurant operators reported negative customer traffic levels for the 20th consecutivew monthin April. About 23 percengt of restaurant operators reported an increasd in customer traffic between April 2008 andApril 2009, up from 20 percen t who reported similarly in March.
60 percent of operators reported a traffic decline in down from 63 percent who reportecd similarlyin March. Restaurant operators also continuwe to grow more optimistic about the with 37 percent saying they expect economic conditionz to improve in six up from 30 percent who reportes similarly last month and the highestf level inthree years. In only 16 percent of operatorzs expect economic conditions to worsen insix months, down from 21 percenft last month. Founded in 1919, the Washington, D.C.-basee National Restaurant Association is a businessa association for therestaurant industry, comprisinfg 945,000 restaurant and foodservice outlets and a work forcer of 13 million employees.