Liquor Store Feasibility Study in the Sacramento-Roseville-Folsom, CA Metro Area

Liquor stores in the Sacramento region

Sacramento accounts for 62 approved liquor store loans from FY2017 through FY2026, totaling $39.8 million. For liquor store, Sacramento comes in at 19 of 426 nationwide; at home the class places 11 of 39. With a location quotient of 1.09x, liquor store holds roughly its national weight among Sacramento loans. That makes this a typical market for the class, not a standout one. The loans are placed in Sacramento County, CA 51 and Yolo County, CA 6.

The median Sacramento loan is $493,000; the middle half runs $325,375 to $797,250. Sacramento reads 1.10x of the national liquor store median, so tickets here run bigger. The band is tight for a class that depends on inventory and a lease or purchase. Loan Analytics withholds the Sacramento split between 7(a) and 504. 0.00% of the loans in Sacramento belong to franchised units.

Open Bank and the other holders

Open Bank holds larger loans on average than U.S. Bank, National Association does. The 7(a) names are Open Bank with 14 loans worth $13.0 million, U.S. Bank, National Association with 10 loans worth $1.7 million, US Metro Bank with 5 loans worth $3.9 million, and Plumas Bank with 5 loans worth $2.4 million. Each Sacramento entry lists a count and dollars, leaving standards unaddressed.

At least 15.4% of FY2017 to FY2024 approvals in Sacramento were cancelled, a floor. No ceiling for undisbursed loans prints for Sacramento. The charge-off rate for Sacramento is withheld, so losses stay unmeasured here. The yearly record includes FY2017 brought 5 loans worth $2.8 million, FY2019 brought 8 loans worth $5.0 million, FY2022 brought 8 loans worth $4.3 million, and FY2024 brought 8 loans worth $5.7 million. Sacramento years not shown are withheld. The Sacramento area is built from project counties, hence counts can run short.

Sacramento: what the study must test

The license comes first: the study should show when a transfer would complete relative to opening, and treat its value as a business asset, not real estate. It should also test location, nearby sellers and local rules on hours and delivery. Inventory is the largest working-capital line and ties up cash, so the plan should show how it is financed. Coverage should be run after price competition and allow for shrink or theft. If the owner buys the building, retail space follows ordinary appraisal rules, and the study should compare owning with leasing.