Coffee Shop Feasibility Study in the Boise City, ID Metro Area

Seventh class, above-parity weight

Coffee shops and snack bars are 7 of 39 among the asset classes in the Boise City area, and a location quotient of 1.31x says the class is over-represented against the national mix. Nationally the area is 39 of 612. The record holds 50 approvals worth $20.6 million over FY2017 through FY2026, and Ada County accounts for 36 of them, so the activity is concentrated in the county that holds the city itself.

Loan size

A midpoint of $257,000 is 1.07x the figure for the class nationally, and loans in the typical range run from $97,450 to $451,500. Franchises account for 40.0% of the loans. Loan Analytics withholds the program counts for this cell, so the page gives no 7(a) or 504 breakdown. The location quotient of 1.31x and the local rank of 7 of 39 describe the same class from two sides: against the national mix and against the other classes in Boise City itself.

Holders

Idaho Central CU is listed on 10 loans worth $5.9 million and Zions Bancorporation, National Association on 9 worth $4.0 million. Both figures follow the holder that SBA lists today, so they reflect where loans sit now.

Years and losses

Only three years clear Loan Analytics' small-count rule: FY2021 with 7 loans and $3.7 million, FY2025 with 6 and $3.7 million, and FY2026 with 8 and $2.3 million. Cancellation after approval reached 13.9% or more for FY2017 through FY2024 approvals, a floor. Nothing is printed for the ceiling version or for charge-offs.

Testing a Boise-area coffee concept

The study must test volume: transactions per hour at peak, how the morning rush is handled, and any drive-through's share of sales. It should test competing shops and kiosks along the commuting routes, the franchise's unit economics if a brand is involved, and the cost of equipment, often the biggest line in a small build. Payments must be covered through a ramp, and the appraisal should assess the operating business and leasehold improvements separately. At the $257,000 median, with half of loans between $97,450 and $451,500, the study can test coverage at both ends of that range.