Quick Service Restaurant Feasibility Study in the Manchester-Nashua, NH Metro Area

Manchester-Nashua: third in the class order, with small tickets

Over FY2017 to FY2026, SBA approved 50 limited-service restaurant loans in Manchester, worth $10.6 million in all. Manchester-Nashua ranks 70 of 779 areas for limited-service restaurants, and at home the class places third among the classes SBA tracks, 3 of 39. A 0.97x location quotient leaves limited-service restaurants close to level with their national weight. The county on file is Hillsborough County, NH, with 50 loans.

Half of Manchester's loans land between $46,250 and $250,000, around $141,850 at the median. Manchester reads 0.46x of the national limited-service restaurant median, so tickets here run smaller. Program counts for Manchester are withheld; neither program is absent. Brand affiliation shows on 24.0% of the loans in Manchester.

One bank holds the named loans

Primary Bank is the only name listed, holding 12 of the 7(a) loans shown, $2.8 million in all. The Manchester holder list reflects SBA records, an inventory, not a review.

At least 11.4% of FY2017 to FY2024 approvals in Manchester were cancelled, a floor. Loan Analytics withholds Manchester's ceiling for undisbursed loans and prints no charge-off rate for the 50 loans, whose cohort is under 30; blank is not zero. The yearly record includes 8 loans worth $1.5 million in FY2017, 5 loans worth $2.0 million in FY2020, 5 loans worth $420,000 in FY2021, and 9 loans worth $1.6 million in FY2024. Manchester years not shown stay withheld. The July 2023 list of counties defines Manchester, so tallies may fall short.

The Manchester test list

A small ticket calls for care, so a study should test whether projected transactions per day actually reach the site, using traffic counts and the stop rates of comparable units, and whether the nearest same-brand store will split the trade area. Where a franchisor is involved, its remodel schedule, royalties and advertising charges must appear in the margin before debt service is calculated. Payment capacity should be proven on a weak opening quarter with no help from promotions. If the unit sits on a pad or ground lease, valuation turns on that lease and on what other occupant could use the building. The cash plan should show monthly sales across the year, including the slowest months, and the effect of road conditions on drive-through trade.