Coffee Shop Feasibility Study in Indiana

Indiana coffee: franchise-heavy and small-ticket

Indiana's coffee shops and snack bars took 157 SBA approvals worth $57.9 million from FY2017 to FY2026, ranking 17 of 53 among states. The class sits 7 of 39 among Indiana classes, so it is one of the state's busier borrower groups, although the location quotient of 0.93x leaves it slightly lighter in Indiana than in the national mix. The median loan of $180,000 is 0.75x the national coffee median. The distinctness screen leaves the cell unflagged; what stands out instead is the franchise share, 45.2% of loans, and an almost complete reliance on SBA 7(a), which carries 154 approvals against 3 under SBA 504.

Who holds Indiana's coffee loans

The middle half of Indiana coffee loans runs from $50,600 to $435,000, sizes that fit a leasehold build-out or a franchise unit rather than land. The Huntington National Bank holds 35 of the loans worth $7.1 million, the clear leader. The State Bank and Trust Company, Old National Bank and Lake City Bank hold 6 each, for $2.7 million, $1.5 million and $935,800. Marion County has 19 approvals, Hamilton 16, Johnson 14 and Lake 12. The pace has picked up: 6 approvals worth $1.4 million in FY2021 gave way to 22 in FY2022 and 24 worth $16.1 million in FY2023.

Cancellation is the outcome to plan around

Approvals that never closed are the main Indiana coffee risk: at least 13.7% of approvals made in FY2017 to FY2024, and up to 16.1% if every loan still undrawn is treated as cancelled. Losses after funding have been light so far: the 52 Indiana units funded across FY2017 to FY2021 show 1.9% charged off as a floor, and 0.00% inside five years.

With franchise units at 45.2% of the book, an Indiana coffee study has to satisfy the brand and the lender at once. Demand should be tested at the specific site by daypart, drive-through access and the competing cafes and quick-service counters nearby. Cost needs the franchisor's build-out specification priced by a contractor, plus equipment, so that the budget does not move after approval and push the deal toward cancellation. Debt service coverage should carry royalty and marketing fees and a slower first year than the brand's average unit. For a resale, the appraisal is of the business, and the study must weigh the asking price against Indiana sales records the seller can produce.

Coffee shops and snack bars carry no extra coding caveat in our map; the Indiana numbers are SBA approvals only, classed by industry code as the borrower reported it, with each rate a minimum.