Report Finds Highest Number of Operators Making Equipment Purchases in 20 Months

The restaurant industry was flat in August, as higher same-store sales were offset by dampened customer traffic levels, according to the latest Restaurant Performance Index from the National Restaurant Association.

The index nudged up 0.1 percent for the month to a level of 99.8. The index is intended to measure the overall health of the restaurant industry, with a value below 100 indicating that the market is in a period of contraction and a value above 100 showing expansion. It consists of two components: the Current Situation Index, which measures current trends in same-store sales, traffic, labor, and capital expenditures, and the Expectations Index, which evaluates the six-month outlook.

Restaurant operators reported a modest net increase in same-store sales for the fifth consecutive month in August, with 46 percent saying year-over-year sales had improved. However, weak customer traffic continues to weigh on the industry, with only 38 percent noting a year-over-year improvement compared with 42 percent who said it had declined.

Although the results were mixed, there were some positive signs in the monthly report. Fifty-four percent of respondents said they made a capital expenditure for equipment, expansion or remodeling during the last three months — the most in 20 months. That willingness to invest could be part of an overall increase in optimism. Four in 10 restaurant operators now expect their sales volume to be higher in six months, the highest reading since February 2025, while a majority of operators (54 percent) said they plan to make another capital expenditure in the next six months.

The full Restaurant Performance Index is available here.