Quick Service Restaurant Feasibility Study in the El Paso, TX Metro Area

Quick-service restaurants in the El Paso area

Fourth place among the El Paso, TX area's classes, 4 of 39, belongs to limited-service restaurants, and nationally the area is 130 of 779. Over FY2017 to FY2026 El Paso approved 26 loans for $12.6 million. Its location quotient is 0.89x, a little under parity, and its median loan of $342,400 stands at 1.10x the class's national median, a little over. Both ratios sit close to parity, so El Paso looks like a typical market for this class and not an outlier, and a sponsor's request will not stand out in size or in local weight.

Range and brands

The middle half of loans is wide, from $71,250 to $770,750, which takes in small equipment loans and full builds. The franchise share is the feature that marks the page: 80.8% of the loans carry a brand. El Paso County, TX holds all 26. The program split and the lenders are not printed.

FY2021 reads 5 loans and $1.9 million, and FY2023 reads 6 loans and $3.9 million. No other year shows, since counts that small could point to individual borrowers. A cancellation or charge-off rate would need a base of 30 loans, and El Paso's is smaller, so none is published. The page therefore cannot show how often El Paso quick-service approvals fail to fund or later default, and it should not be read as saying that they never do.

Testing a branded quick-service plan here

With most financed restaurants branded, the franchisor's numbers are the first thing a lender will read, and a study should check them against the market: what comparable units sell, what the fees leave, and what the required build costs. The site comes next, meaning passing traffic when the format sells, how cars get in, whether the building can be seen, and which competitors are near. Weigh what the build or the lease improvements will cost against a typical loan of $342,400. Debt service must hold in a month when sales are below the brand's average, and the real estate needs its own appraised value, apart from the business. El Paso's boundary is whatever the July 2023 list places in the area, matched to the county where each financed site stands.