The most recent Restaurant Performance Index shows job growth, increased capital spending and moderating expectations for business conditions.
The National Restaurant Association’s Restaurant Performance Index in June signaled moderating expectations for business conditions among operators in an economic environment of job growth and increased capital spending, reports Hudson Riehle, the National Restaurant Association senior vice president of research.
According to Riehle, the June RPI was at 101.2, down 0.1 percent from 101.3 in May.
Here are some of the big takeaways for the economy and the industry:
- Restaurants added another 21,600 jobs, pushing industry employment up 1.9 percent over the past year, compared with 1.6 percent for national employment. During the last year, the industry added 221,000 jobs.
- Sixty-three percent of operators made a capital expenditure within the last three months and 64 percent said they expect to make one during the next six months.
The commodities market
Regarding wholesale food price inflation, that index was up 0.9 percent on a year-to-date basis. Certain commodity groups rose year to date, including:
- Eggs, up 103 percent
- Potatoes, up 30 percent, and
- Beef prices, which increased 5 percent
- Prices on other wholesale commodities, such as pork and cheese, declined over the same period