Coffee Shop Feasibility Study in the Dallas-Fort Worth-Arlington, TX Metro Area

Coffee shop approvals rose sharply in Dallas-Fort Worth

Coffee shop and snack bar approvals in Dallas-Fort Worth-Arlington climbed from 17 loans and $4.1 million in FY2017 to 59 loans and $38.1 million in FY2026. The cell holds 307 approvals worth $146.6 million. Nationally the market takes position 3 of 612, while inside Dallas-Fort Worth the class takes 7 of 39. A location quotient of 1.49x shows coffee as a notably bigger portion of this lending than of the national book.

Tickets run heavy: a median of $348,500 is 1.45x against the national class norm, and the central half runs from $207,400 to $534,950. Almost everything came through SBA 7(a), 302 loans, and SBA 504 shows only 5. Franchised units make up 67.4%, so most projects sit inside a brand system with fee schedules and build standards. A study that ignores those costs will understate the capital a coffee shop in this market needs.

Who keeps the loans

The Huntington National Bank carries 36 SBA 7(a) loans and $13.7 million. Bank of Hope has 15 loans but only $1.7 million, Frost Bank 10 and $5.5 million, Wells Fargo Bank National Association 10 and $2.4 million, and Newtek Bank, National Association 9. No SBA 504 lender here reaches the count needed to be named. Counts reflect the holder SBA reports and speak to no lender's attitude toward coffee. Tarrant County, TX leads with 82 loans, Collin County, TX has 70, Dallas County, TX 67 and Denton County, TX 63, while Johnson County, TX, Kaufman County, TX and Rockwall County, TX trail at 7, 6 and 5.

At least 12.1% of the FY2017 to FY2024 approvals were cancelled. Neither the top limit nor the charge-off rate is printed for Dallas-Fort Worth, because Loan Analytics holds back both for thin cohorts, and a blank is not nil. Dallas-Fort Worth totals come from matching project counties to the 2023 delineation; unmatched loans sit outside.

Testing a Dallas-Fort Worth coffee project

The study should compare morning commuter flow and daytime traffic in Tarrant, Collin and Dallas Counties, since those three carry most of the file, then price equipment, build-out and franchise fees against $348,500. Debt service has to be carried by tickets per hour, drink mix and labor. The study should also test whether new rivals will crowd a site before the loan is repaid. The 307 approvals say nothing about any single project, and a request near the $534,950 edge of the central half needs its own justification.