Coffee Shop Feasibility Study in the Detroit-Warren-Dearborn, MI Metro Area

Coffee loans in Detroit: small, and Huntington-heavy

The median coffee shop and snack bar loan around Detroit-Warren-Dearborn is $157,000, only 0.65x the nationwide figure for the class. The cell is small too: 141 approvals worth $40.0 million between FY2017 and FY2026. Detroit stands 11 of 612 among areas for the class and coffee is 7 of 39 inside Detroit; 0.98x on the location quotient puts the local weight almost exactly on the national mix. The ticket is light, and the area still ranks 11 of 612 for the class.

Quartile edges are $50,000 and $400,000, and franchised units are 47.5%, so nearly half the projects answer to a brand. Neither program count appears, because both counts are held back by Loan Analytics for want of loans. On lenders, The Huntington National Bank stands far ahead at 67 loans and $11.9 million. Newtek Bank, National Association follows with 6 loans and $740,000, and Oxford Bank with 5 and $640,500. That is SBA's holder data and carries no verdict.

Counties and the shape of the years

Oakland County, MI carries 72 loans, Wayne County, MI 40, Macomb County, MI 10 and Livingston County, MI 9, so Oakland County leads. Yearly counts started at 12 loans and $2.4 million in FY2017, fell to 6 loans and $932,400 in FY2020, and recovered to 20 loans in each of FY2023 and FY2025, the second at $8.2 million. FY2026 shows 16 loans and $4.9 million.

Cancellations of at least 12.4% mark the FY2017 to FY2024 approvals. Withheld by Loan Analytics are the ceiling and the charge-off rate, so neither appears and neither is nil. Detroit's totals follow the 2023 delineation applied to each loan's project county.

Testing a Detroit coffee shop

The study should compare commuter flow in Oakland County with city corridors in Wayne County, price equipment and build-out against $157,000, and show that tickets per hour, drink mix and labor cover debt service. The appraisal covers any real estate in the request. A study should also test whether a new shop can win customers from the franchised units that make up nearly half the loans. The 141 approvals above promise nothing about yours.