Quick Service Restaurant Feasibility Study in the Fayetteville-Springdale-Rogers, AR Metro Area

Quick-service restaurants in Benton and Washington counties

The Fayetteville-Springdale-Rogers, AR Metro Area tallies 32 SBA loans to limited-service restaurants for FY2017 to FY2026, carrying $20.7 million. Limited-service restaurants come second out of 39 classes locally, and counting areas the metro lands at 111 of 779. Its location quotient, 1.06x, is close to the national share. At $350,000, median size is 1.13x the nationwide median for the class, and loans in its central half lie from $244,025 to $615,500. No metric here is described as distinctive.

Franchise-heavy, 7(a)-led, and in two counties

Franchise affiliation reaches 59.4% of loans, so more than half the projects sit inside a brand system. The 32 loans split 27 to 5 between SBA 7(a) and SBA 504, respectively. Benton County has 20 loans and Washington County 12. No lender reaches five loans in either program, and so none is named.

FY2021 and the withheld years

Two years print for this metro. FY2018 holds 5 loans and $2.6 million. FY2021 holds 6 loans and $10.0 million, the larger of the two dollar figures on a similar count of loans. The other loans sit in years below the display line, and those blanks are not zero. Outcome rates do not print: the FY2017 to FY2021 cohort for Benton and Washington counties falls under the 30-loan line Loan Analytics sets.

What a study for this class has to test

With more than half the loans franchised, the first question for a quick-service project here is the franchise agreement: royalty, advertising fund, required remodels and the length of the term against the length of the loan. The study should then test sales per transaction, drive-through capacity and the site's traffic, and show debt service coverage after those fees. The $10.0 million printed for FY2021 on only 6 loans shows that single projects can be large, so a proposal near the top of the middle half, $615,500, should say whether it includes land or a building. The July 2023 delineation puts a loan in this metro according to the county of the project. A downside case, with weaker sales in the first year and the franchisor's fees unchanged, shows whether the project can still service its debt.