Quick Service Restaurant Feasibility Study in the Minneapolis-St. Paul-Bloomington, MN-WI Metro Area

What Minneapolis adds beyond its state

From FY2017 and FY2026, applicants starting or acquiring quick-service restaurants in Minneapolis took 378 approvals and $177.1 million in gross dollars. Local sizing centers on $277,100; set against the class's national midpoint, that is a ratio of 0.89x, so loans run smaller here. Minneapolis ranks 12 of 779 nationally for quick-service restaurants, while within Minneapolis itself the category is placed 2 of 39 among all asset classes. Half of the approvals fall between $113,125 and $528,450. A location quotient of 0.89x, says limited-service restaurants take a smaller portion of loans in Minneapolis than the national pattern.

Programs, franchises and lenders in Minneapolis

The 504 holders for fast food and counter-service restaurants are led as follows: 18 loans sit with Midwest Business Finance Corporation, 10 with Twin Cities-Metro Certified Development Company. Under 7(a) lending, BankVista (38 approvals), after it, Sunrise Banks National Association (25 approvals) plus Hiawatha National Bank (23). Of the 378 approvals, 341 are 7(a) loans and 37 are 504 loans, which shows which SBA route quick-service restaurants projects tend to use around Minneapolis. The franchise share of Minneapolis approvals is 51.6%. Lender numbers for limited-service restaurants in Minneapolis are drawn from SBA's holder field: a loan is credited to whoever holds it now, so these rows are no guide to credit practice.

Minneapolis by county and fiscal year

132 loans sit in Hennepin County, MN, 61 in Ramsey County, MN and 52 in Anoka County, MN. The yearly file peaks in FY2024 at 51 approvals and $28.7 million, and bottoms out in FY2026 at 25 approvals and $24.1 million.

Floors that may only rise for quick-service restaurants

Among funded loans of FY2017 to FY2021 (169 in Minneapolis), 8.3% have been charged off so far, as a rule, a floor, and 3.6% across five years of approval. Assignment to Minneapolis rests on the county of the project, by SBA's count, matched by name to the 2023 metro and micro list; quick-service restaurant loans that fail the match are omitted in Minneapolis, which keeps these counts on the low side. Within FY2017 to FY2024, 7.7% or more of Minneapolis quick-service restaurant approvals were called off after approval, a minimum (no ceiling is printed).

Testing a quick-service restaurants project in Minneapolis

A study of limited-service restaurants in Minneapolis begins with demand: delivery platforms and commissions, and drive-through and walk-in counts. The 378 approvals file funding of the class in Minneapolis; they do not show that any particular site would pass the same test. The decision to lend belongs to lenders, not studies; a study for quick-service restaurants in Minneapolis provides the evidence a lender can weigh against the record. Cost lines to price include labor cost per transaction and franchise fees and buildout; the sum is then set against Minneapolis loans of $113,125 to $528,450, with $277,100 at the center. On value, a Minneapolis lender will weigh sales per site against system and franchise terms that limit resale. Lenders will look hard at debt service coverage for quick-service restaurants in Minneapolis under a late-ramp case; the loss floors on this page are the cause.