Tuesday, May 4, 2010
Restaurant Industry Outlook Continuing to Improve!
For the first time in 22 months, restaurant operators reported net positive same-store sales. Restaurant operators also reported a net increase in customer traffic in March, the first positive reading in 31 months. Hudson Riehle, Sr. VP of Research for the National Restaurant Association, stated that “restaurant operators reported net gains in both same-store sales and customer traffic in March, the first time in 31 months that both indicators stood in positive territory.”
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 99.0 in March – up a solid 2.4 percent from February’s level of 96.7. 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 101.9 in March – up 0.5 percent from February and its strongest level in nearly three years. In addition, the Expectations Index stood above the 100 level for the third consecutive month, which signifies expansion in the forward-looking indicators
Restaurant operators are growing more optimistic about their sales prospects in the months ahead. Fifty percent of restaurant operators expect to have higher sales in six months (compared with the same period in the previous year), up from 44 percent who reported similarly last month and the strongest level in 33 months.
Information gathered from: www..com