Restaurant business strongest in almost six years

February 3, 2012

The following article has been published by The Packer and was written by Andy Nelson: Fresh produce sales could jump in the near future, if the latest restaurant performance index is any indication. TheU.S. restaurant industry in December turned in its strongest performance in almost six years, according to one leading industry measure. The National Restaurant Association’s restaurant performance index was 102.2 in December, up 1.6% from November and as high as it’s been in almost six years, according to a news release from the Washington, D.C.-based association. It was the third time in four months the index, which tracks the current health and outlook for the industry, was over 100. Thehigh scores were driven by strong same-store sales and customer traffic in December and by operators’ plans for capital spending — expected to be at their highest levels in more than four years. Sixty-nine percent of restaurant operators reported a same-store sales gain between December 2010 and December 2011, while only 18% reported a decline, according to the association. That marked the strongest sales performance since February 2004. Restaurant operators also reported brisk customer traffic in December. Fifty-seven percent reported higher customer traffic levels from December 2010 through December 2011, while just 23% reported a traffic decline. Forty-eight percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the past three months, the highest level in six months. And for the first time in a year, a majority of restaurant operators expect their sales to be higher in the months ahead, according to the association.