Quick Service Restaurant Feasibility Study in Ohio

Ohio finances quick service restaurants in small pieces. The median loan to a limited-service restaurant in Ohio is $192,250, just 0.62x the class median nationally, and the middle half ranges from $50,000 to $465,000. That small median is what distinguishes this cell from Ohio's SBA lending as a whole and from the class across the country. Volume is large all the same: Ohio approved 958 quick service loans from FY2017 to FY2026 for $334.5 million, 5 of 54 among states, and the class stands 2 of 39 within Ohio, with a location quotient of 0.86x.

One bank carries the market

The Huntington National Bank holds 431 of the 958 loans, for $107.3 million. No other lender comes close: KeyBank National Association has 51 loans for $15.4 million, First Commonwealth Bank 36, Telhio Credit Union Inc 24 and Fifth Third Bank 23. SBA 504 is a minor channel here, 41 loans against 917 under 7(a), with Alloy Development Co., Inc. (10 loans) and Growth Capital Corp. (8) at the top. Franchise borrowers make up 51.5%. Franklin (129 loans) and Cuyahoga (124) are close rivals, ahead of Hamilton (81), Butler (42) and Summit (41). Counts rose to 125 in FY2024 for $38.4 million before falling back to 71 in FY2026.

Small loans, moderate losses

Of 394 Ohio quick service loans disbursed in FY2017 to FY2021, 4.3% have been charged off to date, and 2.8% inside five years, roughly in line with the Ohio all class floor and under the class nationally. Cancellation after approval was 10.6% for FY2017 to FY2024 approvals, while the ceiling that counts still undisbursed loans is 14.1%, so a share of recent approvals has yet to fund. Both are floors and will move as loans age.

Questions for an Ohio quick service study

A loan near $192,250 rarely buys a building. Ohio projects at that size are more likely franchise units in leased space, equipment and remodels, or purchases of existing stores. The study has to show which. For a purchase, demand is the seller's verified sales and whether they hold under new ownership. For a new unit, it is traffic, visibility and the competing brands within the trade area. Cost must cover the build out and the franchisor's equipment package. Coverage should be tested with a lender's eye on labor, since in a small store the owner's wage and the staffing plan decide whether the payment is met. The appraisal will usually be of equipment and leasehold value, so cash flow carries the credit.

No class limitation line applies here; industry is the borrower's own code in the SBA files, and these rates are cohort floors.