Quick Service Restaurant Feasibility Study in Massachusetts

Massachusetts finances its quick service restaurants with small loans. The median is $150,000, only 0.48x the limited-service restaurant median nationally, and that median is what distinguishes the Massachusetts cell from both the state's lending overall and the class nationally. The class still places 2 of 39 among classes in Massachusetts, with 555 approvals worth $168.3 million from FY2017 to FY2026, while the state ranks 12 of 54 among states for the class. At 0.87x, the location quotient puts quick service slightly below its national weight in Massachusetts.

Independent operators and local banks

Franchise units account for 20.2% of loans, so most Massachusetts borrowers are independent operators rather than brand franchisees. The middle half of loans runs from $62,350 to $400,000. SBA 7(a) carries 497 approvals and SBA 504 carries 58. Eastern Bank holds 80 of the 7(a) loans worth $13.0 million, TD Bank, National Association 37, Santander Bank, National Association 32 and Beacon Bank and Trust 21. Granite State Economic Development Corporation leads 504 with 26 loans, ahead of Bay Colony Development Corporation with 13. Eastern Bank's 80 are loans SBA shows in its hands today.

What the Massachusetts floors say about risk

The charge-off floor is 9.1% across 219 loans disbursed in FY2017 to FY2021, and 6.4% failed before their fifth anniversary, which means most Massachusetts losses arrived early. Massachusetts cancellations fall between a floor of 11.5% and a ceiling of 12.7%. A small loan does not mean a small risk. Approvals grew from 45 and $7.2 million in FY2018 to 88 and $34.6 million in FY2025.

Testing a Massachusetts quick service plan

The counties with the most approvals are Middlesex with 117, Essex with 84, Suffolk with 76 and Norfolk with 54, with Plymouth at 48, Bristol at 45 and Barnstable at 40. A study has to test demand at the actual storefront: foot traffic, lunch and evening dayparts, delivery share and the competing operators on the block. Cost testing is about the refit and equipment. Coverage should be built from the operator's own history where one exists, and from conservative covers where it does not. For an acquisition, the valuation must support the price paid for the business, since real estate backs few of these loans. Limited-service restaurants carry no coding caveat beyond the floors.