Quick Service Restaurant Feasibility Study in the Milwaukee-Waukesha, WI Metro Area

Franchised near half, tickets under the national median

Milwaukee-Waukesha quick-service lending is close to national in weight, with a location quotient of 0.95x, and light in size, with a $250,000 median at 0.80x the class's national figure. Franchised concepts make up 46.7% of loans. The area is 37 of 779 for the class nationally and limited-service restaurants are the second class (2 of 39) in the area itself. SBA approved 122 loans from FY2017 to FY2026, worth $50.6 million, and the middle half spans $125,000 to $480,750.

Programs, counties and years

SBA 7(a) accounts for 113 loans and SBA 504 for 9. Milwaukee County provides 75 loans, Waukesha County 29, Washington 11 and Ozaukee 7. The year series is thin: 20 loans in FY2017 and FY2019, only 5 in FY2022 and 8 in each of FY2023 and FY2024, then 14 in FY2025 with $7.0 million and 12 in FY2026 with $8.7 million.

Holders on SBA's list

WBD, Inc. holds 9 of the 504 loans, worth $7.0 million. Under 7(a), Bank Five Nine holds 15 loans worth $5.7 million; Wisconsin Women's Business Initiative Corporation, 12 loans for only $1.3 million, a very small average, followed by The Huntington National Bank with 10, Summit CU with 7 and Byline Bank with 6. SBA names today's holder, as the page's own note says, and the list reveals nothing about credit standards.

Cancellations and what is missing

A floor of 13.5% describes cancellations among FY2017 to FY2024 approvals in Milwaukee. The source publishes neither the undisbursed-inclusive version nor a charge-off rate on such small counts; no loss rate is given, and the omission is not a zero.

Testing a Milwaukee-area quick-service unit

A study should lead with the franchisor's disclosed investment and the sales of comparable units, then show whether the trade area has room for another branded unit beside those already open. Winter seasonality in the upper Midwest affects drive-through and patio sales, and the study should reflect it in monthly cash flow. Tickets are modest, so the plan should explain whether the project is a lease build-out, equipment or an acquisition. Debt service coverage after royalties, and in a slow first year, belongs in the base case. Washington, Ozaukee and the other counties are assigned through July 2023 definitions.