Liquor Store Feasibility Study in the Cincinnati, OH-KY-IN Metro Area

Cincinnati: liquor stores light in weight, small in size

Inside Cincinnati, liquor stores stand at 15 of 39 among classes; across areas, Cincinnati stands at 37 of 426. SBA's file for Cincinnati adds up to 27 loans and $10.4 million across FY2017 to FY2026. Cincinnati shows a location quotient of 0.45x and a median loan of $276,000, which is 0.61x the national median for the class. Both ratios sit well under the national mark, so the Cincinnati record is one of fewer and smaller loans than the national pattern.

Because the franchise share is 0.00%, every Cincinnati liquor loan in the record went to an independent operator, so the page offers no brand comparison. A lender will therefore judge a request on the store's own lease, stock and trade area, and the study should say how many months of inventory the working capital covers.

From $87,500 to $587,950 is where the middle half of Cincinnati loans fall. The franchise share prints as 0.00%. First Financial Bank (OH) is listed as holder of 9 loans carrying $2.9 million. Hamilton County in Ohio holds 16 of the 27 loans and Butler County in Ohio 5. How Cincinnati loans divide by program is not shown.

One year

Only FY2019 can be shown, with 7 loans worth $3.1 million. Fiscal years absent for Cincinnati had too few loans. Cancellation and charge-off stay unpublished for Cincinnati: under 30 loans.

In practical terms the Cincinnati record offers three reference points: a median of $276,000, a middle half from $87,500 to $587,950, and a single printed year with 7 loans. A lender will use them to judge scale. A borrower whose request falls well above the top of that range should expect questions about inventory, real estate and licence value, and should show how each is documented before the loan is sized.

What a Cincinnati package store study has to test

The study should set sales per square foot against lease or purchase cost, margin by product category, money tied up in inventory, and the licence needed to open. At 0.45x on location quotient, liquor stores form a minor strand of Cincinnati lending, so a lender has fewer local precedents to use and will lean on the plan. The $276,000 median is a guide for sizing, and the study should separate real estate from business value for the appraiser. The area crosses three states, so licensing rules depend on which side of the river the site sits.