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Restaurant operators still feeling the pain

Restaurant operators still feeling the pain

WASHINGTON The majority of the restaurant industry continues to report declining traffic and same-store sales and is less optimistic about future sales growth, according to the latest National Restaurant Association survey of operators.

The NRA’s Restaurant Performance Index, a monthly composite index that tracks the U.S. restaurant industry's health and outlook, stood at 97.8 in June, down 0.5 percent from May and its 20th consecutive month below 100, indicating industry contraction. This is the second monthly dip for the index, the results of which were released Friday.

“While there are signs that suggest an improvement may be on the horizon, the latest figures indicate that the restaurant industry’s recovery has yet to gain a firm foothold,” said Hudson Riehle, senior vice president of research and information services for the NRA. “Restaurant operators continued to report declines in same-store sales and customer traffic in June, and their outlook for sales growth in the months ahead remains mixed.”

Only 22 percent of restaurant operators surveyed by the NRA for its monthly Restaurant Performance Index reported a year-over-year same-store sales gain in June, the lowest reading in the seven-year history of the association’s index readings.

Looking ahead, 33 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same time frame in the previous year, while 24 percent of restaurant operators expect to have higher sales in six months, the NRA reported.

Restaurant operators also are less optimistic about the economy, compared with survey results from recent months. Twenty-six percent of restaurant operators said they expect economic conditions to improve in six months, down from 34 percent who reported similarly in May. In addition, more operators expect economic conditions to worsen, with 26 percent reporting they are pessimistic, up from 17 percent who reported similarly in May.

Find the full NRA Restaurant Performance Index here: http://www.restaurant.org/pdfs/research/index/200906.pdf

Contact Sarah E. Lockyer at [email protected].

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