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Operators remain keen on making capital expenditures

Restaurateurs are continuing to make capital expenditures for their businesses, the National Restaurant Association’s Industry Tracking Survey has found.

According to the report, which was released late last month, 46 percent of operators said they made capital expenditures for equipment, expansion or remodeling in the last three months. The figure was down slightly from 48 percent of operators who were questioned in July.

Of those surveyed, 57 percent of quickservice operators and 50 percent of fast-casual operators reported they’d made a capital expenditure in the last three months.

The report also noted that 49 percent of operators plan to purchase equipment, expand or remodel at their establishments within the next six months. The figure is on par with 51 percent of operators who in July said they would make capital expenditures for their restaurants.

Furthermore, 56 percent of casual-dining operators reported that they planned on making capital expenditures within the next six months.

Hudson Riehle, senior vice president of the NRA’s Research & Knowledge Group, said the current steady levels of capital spending reflect operators waiting to make structural improvements and capital purchases until the economy grew more stable.

“Restaurateurs have been waiting until their sales and the operating environment started improving,” he said. “After years of pent-up demand to make capital expenditures, they are now ready to invest in expanding and refurbishing their operations.”

SOURCE: National Restaurant Association