Quick Service Restaurant Feasibility Study in the Asheville, NC Metro Area

Asheville: counter-service concepts second, exactly at the national weight

SBA's file places limited-service restaurants at position 2 of 39 for Asheville, and places Asheville at 130 of 779 among areas. 26 loans worth $13.5 million are on file for Asheville, covering FY2017 to FY2026. The location quotient is 1.00x, which means these restaurants take the same share of Asheville's loans as of the national book, and the $278,000 median loan is 0.89x the national median. Nothing on the page sets Asheville apart on either ratio; it is a record at the national norm with slightly smaller loans.

Loans in the middle half of the Asheville range start at $117,425 and top out at $746,225. Franchise units are 38.5% of the loans, a minority, so independent concepts hold most of the file. First Bank (NC) is listed as holder of 5 loans carrying $3.1 million, and 5 carrying $876,600 sit with Mountain Bizcapital, Inc.; the same count with a much smaller dollar total shows the two holders carry different sizes of loan. How Asheville loans divide by program is not shown.

FY2018 shows 5 loans worth $3.9 million and FY2024 shows 5 loans worth $850,400, a fall in dollars for the same count. FY2026 is a completed year with 0 loans and $0 on file. Years not shown for Asheville sit beneath the display floor. This page leaves out Asheville's cancellation and charge-off rates.

What an Asheville quick-service study has to prove

Because the ratios are at the national norm, the case for a unit rests on its own site. The study has to test sales per unit against land, building and kitchen cost, show the effect of any franchisor's royalty and required standard, and show that a drive-through or walk-up layout copes with the busiest hours. Lenders will weigh the request against the $278,000 median and a middle half from $117,425 to $746,225, a wide span, and will ask for a ramp-up case in which sales stay below plan for several months.

What the two holders suggest, and what they do not

Two institutions appearing with 5 loans each is a modest signal. It tells a borrower that these loans are not concentrated in a single holder. It does not describe either lender's practices, and the page makes no claim about what any lender requires, so a borrower should ask lenders directly about terms.