Coffee Shop Feasibility Study in the San Jose-Sunnyvale-Santa Clara, CA Metro Area

Coffee and snack bars where the median is above the national figure

San Jose's median of $332,000 is 1.38x the nationwide class figure, and its middle band of loans lies between $150,000 and $582,500. San Jose-Sunnyvale-Santa Clara, CA lists 35 SBA loans, FY2017 through FY2026, to coffee shops and snack bars, adding to $18.9 million. Within the metro the class is ninth of 39, and in the area-by-area ordering the metro is 43 of 612. A quotient of 0.88x leaves the class slightly lighter here than nationally. San Jose's numbers describe the cell and are set against the national class only through the ratios above.

Brands and the sparse years

Brand affiliation touches 37.1% of the loans, so a meaningful share of projects follow a franchise system. The split between SBA programs is not printed and no holder is listed, since none reaches five loans. Two years can be shown: FY2020, with 5 loans and $595,000, and FY2024, with 6 loans and $7.5 million. Similar loan counts produced very different dollars, a sign that individual projects vary widely in size, but two points cannot make a trend. Every other year is blank, and a blank here does not mean zero.

Why there are no cancellation or charge-off rates

San Jose gets no cancellation or charge-off rate here: San Jose's group of loans from FY2017 to FY2021 is smaller than the 30 Loan Analytics' own rule asks for. A borrower should not read the absence as a clean record or a troubled one.

Testing a coffee concept at the San Jose price point

Coffee economics turn on transactions per hour, average check and occupancy cost, so a study should build daily sales from counts taken at the proposed address and then stress them. A loan near the $582,500 top of the central half implies a full build-out, and one near $150,000 implies a lighter conversion or kiosk, so the first step is to place the project in that range. If the concept is franchised, fees and required equipment must be inside the debt service test, and a slow first year should still show the payments covered. Loans are assigned to the metro by project county on the July 2023 map, and a county that cannot be placed drops the loan.