The Restaurant Performance Index declined slightly in December to 100.5 from the November value of 100.7.
The Current Situation Index which measures same-store sales, traffic, labor and capital expenditure declined slightly to 99.5 in December mainly as a result of depressed same-store sales and traffic.
The Expectations Index was unchanged in December at 101.6. This parameter was associated with a “cautiously optimistic outlook for the economy.”
Approximately one-third of restaurant operators expect an improvement in the economy within the coming six months which is an improvement from 2016 with eleven straight months of negative expectations. More than half of the restaurant operators plan to make a capital expenditure in equipment, expansion or remodeling within the next six month. This may be due to increasing labor rates predicating modern equipment to achieve efficiency in food preparation and serving.