Quick Service Restaurant Feasibility Study in the Colorado Springs, CO Metro Area

Larger-than-usual quick-service loans in El Paso County

What sets Colorado Springs apart is loan size. Here 66 limited-service restaurant loans add to $35.4 million over the ten fiscal years, and a median of $444,250 runs 1.43x the national median, the cell's distinctive metric. Half of the loans fall between $234,000 and $623,775. At 0.98x, the location quotient says Colorado Springs gives quick service about its national weight; the premium lies in deal size across the 66 loans, not in how many exist.

Rank and brand dependence

Ranked against every metro and micro area, Colorado Springs is 54 of 779 here, and limited-service restaurants are 2 of 39 locally. Franchise share is 56.1%, which puts royalty, remodel and territory terms inside the study. In El Paso terms that is 59 loans under 7(a) against 7 under 504, so most financing is for equipment, fit-out and working capital, with a few owned-property deals.

Almost entirely El Paso County

El Paso County, CO accounts for 61 loans and Teller County, CO for 5, so this is essentially a single-county record. Only The Huntington National Bank reaches the 7(a) listing line here, at 9 loans and $2.2 million, a tally of recorded holdings and not an opinion of the bank. Printed years run FY2020 at 5 loans and $1.9 million, FY2021 at 6 and $4.9 million, FY2022 at 5 and $1.9 million, FY2023 at 11 and $6.1 million, and FY2024 at 11 and $6.5 million, a clear lift in the last two. Withheld, for thin counts, are FY2017 through FY2019 and also FY2025 and FY2026.

Cancellation floor and ceiling agree

Colorado Springs shows cancellations after approval of at least 18.4% for FY2017 to FY2024, and the stricter ceiling also reads 18.4%. That is a high figure for a restaurant class and deserves a contingency plan in any borrower's timeline. Colorado Springs prints no charge-off rate; that is not a zero. A loan belongs to this metro when its project county, matched by name, falls in the July 2023 list.

What a Colorado Springs study has to settle

With bigger loans comes a bigger question: can the site carry them? The study should test traffic and trade-area households around the pad, military and tourism seasonality as they affect sales, and the competing drive-throughs within the same corridor. Cost work covers the building or leasehold, kitchen line and signage. Run debt service at the median of $444,250 and at the upper end of the range, and have an appraiser value the building, equipment and franchise rights apart.