Restaurant Feasibility Study in the Bremerton-Silverdale-Port Orchard, WA Metro Area

Concentrated and cancelled

The Bremerton-Silverdale-Port Orchard area leans hard on restaurants: the quotient of 1.59x puts the class far above the national mix, and it ranks first among the 39 classes in the area. Nationally the area is 119 of 821. SBA approved 40 loans from FY2017 to FY2026 for $15.1 million, every one in Kitsap County, so the area's record is the county's record.

Cancellation

The notable figure is cancellation after approval, which came to 23.3% at minimum for FY2017 through FY2024 approvals. The ceiling variant is not shown and neither is a charge-off rate. A restaurant owner should read this as a sign that a meaningful part of approved projects did not proceed. The figures do not say why, so a study should test the proposed schedule for permits, lease signing and equipment before an approval is relied on.

Ticket size

A midpoint of $213,000 is 0.77x the national figure, and ordinary loans come in between $50,000 and $452,625. No loan is flagged as franchised, with the share at 0.00%, so the record shows no franchise ownership. Program counts are not printed for this cell.

Holders and years

Cancellation at 23.3% is the largest outcome figure printed here, and with no ceiling shown the true rate could be higher. Heritage Bank (WA) is listed on 10 loans worth $4.7 million and Columbia Bank (OR) on 7 worth $225,000, a strikingly small average. Heritage Bank’s average loan is well above the $213,000 midpoint, while Columbia Bank (OR)’s is far below it. Printed years: FY2017 with 6 loans and $2.7 million, FY2018 with 8 and $2.2 million, and FY2019 with 5 and $1.7 million. Loan Analytics withholds the other years.

Studying a Kitsap County restaurant

A study should test the local customer base, including the workforce, commuters and visitors in the trade area and how their patterns run across the week and the year. It should test competing restaurants, labor supply and the cost of a build-out against a loan near $213,000. The two named holders account for less than half the loans. Show the loan serviced through a soft launch, and the appraisal should distinguish the operating business from any real estate.