Quick Service Restaurant Feasibility Study in the Omaha, NE-IA Metro Area

Franchise units are 57.8% of limited-service restaurant loans in the Omaha area, which makes the record largely a branded one. On the area's list the class is 4 of 39, the area ranks 77 among 779, and a location quotient of 0.75x sits below parity. Over FY2017 to FY2026 there are 45 approvals totaling $24.1 million, and a median of $392,000 works out to 1.26x the national figure for limited-service restaurants. Brand systems tend to set their own build-out budgets, so the bulk of loans, $125,000 to $720,000, likely reflects franchisor requirements as much as local choice.

Counties, banks and size

Douglas County, NE supplies 30 loans and Sarpy County, NE 7, so the record is mostly an Omaha-and-surroundings story. First State Bank Nebraska shows 6 loans and $1.6 million, while Union Bank and Trust Company (NE) shows 5 loans and $3.0 million, a larger average. Central loans run from $125,000 to $720,000. The program counts are hidden, which means a reader cannot see how much of the book is working capital and equipment versus owned real estate, and the study should settle that for the project at hand.

Years and loss floors

FY2017 had 6 loans and $1.5 million, FY2019 5 loans and $609,900, FY2021 7 loans and $6.4 million and FY2022 7 loans and $3.4 million. FY2018, FY2020 and FY2023 through FY2026 are hidden. Cancelled approvals from FY2017 through FY2024 number no fewer than 15.4% of the group, and the number stays at 15.4% when undisbursed loans are added. The charge-off rate is hidden, and hidden is not zero.

Testing a quick-service unit

For a branded drive-thru or counter unit, the study begins with the franchisor: territory rights, development schedule, build-out standards, royalties and the franchise's own sales data. The site test is traffic count, drive-thru stacking, visibility and the presence of nearby units of the same brand or segment. The cost test should compare the franchisor's estimate of build-out with the $392,000 median. The cash model needs a conservative opening ramp and a labor line that reflects local wages. With a flag on most loans, an appraiser should split land and building from equipment and the franchise itself. Douglas and Sarpy follow the July 2023 definitions, and Iowa-side sites fall inside the metro.