Restaurant Feasibility Study in the Myrtle Beach-Conway-North Myrtle Beach, SC Metro Area

Full-service dining along the Grand Strand: large loans, steady lead

The Myrtle Beach-Conway-North Myrtle Beach, SC Metro Area puts full-service restaurants at 1 of 39 locally, and the 1.42x location quotient says they carry more weight in the local book than nationally. As for size, the median loan of $700,000 comes to 2.55x the nationwide median, a high multiple. The area stands 142 of 821 on the metro and micro list. Over FY2017 to FY2026, 33 approvals add up to $33.7 million, all in Horry County.

Ticket sizes and franchising

Half of the loans lie between $275,500 and $1.4 million. Franchised restaurants account for 36.4% of loans, so most are independent. The program split is withheld.

Years and the lender

Five years can be shown. FY2017 had no approvals and $0, FY2019 had 5 loans and $5.2 million, FY2023 had 9 loans and $5.9 million, FY2025 had 5 loans and $6.1 million, and FY2026 had 5 loans and $3.5 million. FY2026 is a complete year, so its 5 loans are a full-year count. The rest are hidden. TD Bank, National Association holds 5 loans totaling $2.0 million on SBA's books, a statement of custody.

Missing rates

Cancellation and charge-off floors cannot be printed for Horry County. The early cohort has too few loans, so Loan Analytics keeps those rates off the page, and what is missing should be read as unknown.

Study points for a coastal restaurant

Because the median runs far above the nationwide one, a request should be justified line by line: building purchase or lease, kitchen, bar, patio, and parking. Sales should be built from covers, check size and table turns at each daypart, then ask how much of the volume depends on the period of the year in which the room is busiest. The evidence the lender wants is a month-by-month cash flow that carries the debt payment through the weakest months, with a liquidity reserve. The study should name the license position for alcohol and what happens if it is delayed. The appraisal of a restaurant property will weigh whether a different operator could use the building, so the study should keep real estate value apart from the business.