WASHINGTON National Restaurant Association shows restaurateurs are more confident about the economy in the months ahead than they have been in more than a year. —Operator optimism continues to percolate as new data from the
The news mirrors U.S. consumer confidence, which also took an upswing in April to its highest point so far this year. Earnings commentary from some of the largest operators also indicated signs of improvement. Domestic same-store sales at Domino’s returned to positive territory, and Starbucks’ same-store sales remained negative, but improved from low winter levels. —Operator optimism continues to percolate as new data from the
According to NRA data, operator optimism for the future was strong, but because of the still difficult current economic conditions, the NRA’s overall restaurant performance index stood at 97.7 in March. That was up 0.2 percent from February and up 1.3 percent since January, but still below 100, signaling continued contraction in the industry. The index, which asks operators about same-store sales, traffic, labor and capital expenditures, is pegged to a value of 100, with values above 100 indicating restaurant industry expansion and index values below 100 representing industry retrenchment. —Operator optimism continues to percolate as new data from the
“Although the [restaurant performance index] remained below 100 for the 17th consecutive month…there are clear signs of improvement,” said Hudson Riehle, the NRA’s senior vice president of research and information services. “Restaurant operators reported a positive six-month economic outlook for the first time in 18 months, and capital spending plans rose to a nine-month high.” —Operator optimism continues to percolate as new data from the
According to the NRA, for the first time in 18 months, a higher proportion of operators surveyed by the association said they expect the economy to improve in six months than those who said they expect economic conditions to worsen. —Operator optimism continues to percolate as new data from the
Thirty percent of operators surveyed by the NRA said they expect economic conditions to get better in six months, up from 22 percent who reported similarly in February. Just 21 percent of operators surveyed said they expect economic conditions to further deteriorate in six months, down sharply from the 36 percent who reported feeling that way last month, the NRA’s report said. —Operator optimism continues to percolate as new data from the
Forty-four percent of restaurant operators told the NRA that they plan to spend money on equipment, brand expansion or restaurant remodeling in the next six months, the highest level since July 2008. Since the U.S. recession hit its stride last fall and the financial and credit markets imploded, many restaurateurs have been unable or unwilling to secure growth capital. —Operator optimism continues to percolate as new data from the
Despite the growing sense of optimism, operators remain somewhat uncertain about sales growth in coming months, the NRA’s survey found. Thirty percent of operators expect to post higher sales in six months, but 38 percent of operators expect their sales volume in six months to be lower than a year ago. —Operator optimism continues to percolate as new data from the
Improved U.S. consumer confidence ratings could be providing operators with reason for some optimism. The Conference Board Consumer Confidence Index, which had posted a slight increase in March, improved considerably in April, according to the nonprofit group’s statement late last month. The index now stands at 39.2, up from 26.9 in March. The index, like the NRA restaurant performance index, is pegged to 100. It is based on a representative sample of 5,000 U.S. households. —Operator optimism continues to percolate as new data from the
“Consumer confidence rose in April to its highest reading in 2009, driven primarily by a significant improvement in the short-term outlook,” Lynn Franco, director of The Conference Board consumer research center, said in a statement. “The sharp increase in the Expectations Index suggests that consumers believe the economy is nearing a bottom, however, this index still remains well below levels associated with strong economic growth.” —Operator optimism continues to percolate as new data from the
The number of respondents who said they anticipate business conditions to worsen over the next six months declined to 25.3 percent, from 37.8 percent in the prior month, while those expecting conditions to improve increased to 15.6 percent in April, from 9.6 percent in March. —Operator optimism continues to percolate as new data from the
An April consumer study from RBC Capital Markets showed that when the economy does improve, 44 percent of the respondents said they would spend more money on dining out and everyday entertainment, second only to 48 percent of the respondents who said they would spend more on travel. —Operator optimism continues to percolate as new data from the
“The stabilization [and] improvement in confidence and restaurant-spending intentions support the notion we’re nearing an inflection point in consumer spending,” said RBC restaurant securities analyst Larry Miller. “We are seeing an improvement in spending plans over the last several months after a year of declining spending intentions.”— [email protected] —Operator optimism continues to percolate as new data from the
