Coffee Shop Feasibility Study in New Hampshire

New Hampshire coffee shops are small-ticket borrowers

The coffee shop and snack bar cell in New Hampshire is small in every direction. SBA approved 68 loans across FY2017 to FY2026, worth $14.9 million, and the median loan of $111,500 is just 0.46x the nationwide coffee median. Half the loans fall between $36,250 and $307,750. The state ranks 33 of 53 for the class, the class ranks 7 of 39 among New Hampshire industries, and the location quotient of 0.91x puts it a touch under its national weight. Because nothing here is distinct from its parents, national coffee shop pages are a fair stand-in for comparisons.

The 7(a) program accounts for 59 loans and the 504 program for 9, and franchising reaches 32.4%. TD Bank, National Association leads with 10 loans but only $327,600 in dollars, meaning tiny average tickets, perhaps equipment and working capital. Meredith Village Savings Bank follows with 7 loans and $2.1 million, a markedly larger average. Manufacturers and Traders Trust Company has 5 loans and $300,000. A borrower here will find community banks and a few regional names competing for small loans.

Where the shops are

Hillsborough County has 17 loans, Rockingham 14 and Belknap 13, ahead of Strafford with 8 and Grafton with 7. Belknap's showing stands out for a county of its size. Approvals went 5 in FY2017, 3 in FY2023, then 11 in FY2024 worth $2.7 million, and FY2025 added 8 loans for $3.7 million.

Cancellation reached at least 5.8% of New Hampshire coffee approvals through FY2024, with 9.6% as the ceiling. For the 32 loans disbursed in the earliest group, charge-offs to date are at least 3.1%, and the five-year measure shows 0.00%, meaning the losses that exist surfaced after the opening years. A cohort this size moves with a single default, so neither figure is settled.

Diligence for a New Hampshire cafe

A study must test foot traffic and dayparts honestly: commuter flows, college and tourist seasonality, and the drive-through question that decides whether a site works. Competition includes national chains and independent roasters, so rent per square foot against sales per square foot belongs in the model. Franchise or independent changes cost and royalty burden. Coverage should be tested in the slow winter months, with a lender checking the equipment value and lease term supporting the loan.