Restaurant Performance Index Returns to Growth in May Despite Ongoing Traffic Challenges

The National Restaurant Association's Restaurant Performance Index (RPI) returned to expansion territory in May, rising 0.2% to a reading of 100.1 after two consecutive months below the 100-point threshold. While the increase signals a modest improvement in the overall health of the restaurant industry, the latest data suggests operators continue to face mixed business conditions.

Much of May's improvement was driven by stronger same-store sales. Fifty percent of restaurant operators reported higher same-store sales compared to May 2025, up from 48% in April, while 33% reported declining sales. Customer traffic, however, remained a concern. Only 29% of operators experienced higher traffic year over year, while 45% reported fewer customers. Although traffic improved slightly from April, May marked the 15th time in the past 16 months that operators reported an overall decline in customer visits.

The Current Situation Index, which measures same-store sales, customer traffic, labor, and capital expenditures, increased to 99.7 in May but remained below the expansion threshold for the 10th time in the past 11 months. Meanwhile, the Expectations Index climbed to 100.4, reflecting modestly improved confidence about future business conditions after two months of decline.

Restaurant operators also expressed a mixed outlook for the months ahead. Thirty-one percent expect sales to increase over the next six months, the lowest level reported in seven months, while nearly one-quarter anticipate lower sales. Confidence in the broader economy also remains subdued, with 30% expecting economic conditions to worsen and only 19% anticipating improvement.

Despite the cautious outlook, operators continue to invest in their businesses. Nearly half reported making capital expenditures for equipment, remodeling, or expansion during the past three months, and 54% plan to make similar investments within the next six months. That marks the 14th consecutive month in which a majority of operators have indicated plans for future capital spending, suggesting continued confidence in long-term business growth despite near-term economic headwinds.

Read the full report here.