Restaurant Feasibility Study in the Oklahoma City, OK Metro Area

Oklahoma City: restaurants first, outcomes unpublished

Sit-down restaurants top the local list in the Oklahoma City area, first among 39 classes, with 102 loans and $52.8 million approved from FY2017 to FY2026. Nationally the area stands 52 of 821 for the class, and a location quotient of 0.89x shows restaurants a bit lighter in local lending than the national pattern. A median loan of $322,500, which is 1.17x the national midpoint for the class, sits inside quartiles of $133,075 and $675,250. Independents dominate, since only 15.7% of loans are franchised.

A page without outcome rates

For this cell SBA prints no cancellation percentage and no charge-off rate, the groups being too small to support either. Neither figure is zero, and nothing on this page should be read as saying the loans performed well or badly. Several yearly counts are missing for the same reason: FY2018 and FY2021 are blank, while FY2022 stands out at 17 loans and $14.5 million, the largest dollar year printed, against 7 loans and $4.0 million in FY2024.

The two programs and their holders

The 102 loans run 88 on 7(a) and 14 on 504. Rural Enterprises of Oklahoma, Inc. is the single 504 name, with 6 loans valued at $3.6 million. In 7(a), BancFirst is shown with 30 loans worth $19.4 million and Legacy Bank (OK) with 5 worth $947,900. BancFirst's weight reflects how SBA attributes loans in this area; it is no statement about what it or any other lender would ask a restaurateur.

Place and the questions a study answers

Oklahoma County has 66 loans and Cleveland County 17, so most of the record sits in Oklahoma County. Oklahoma City membership is by project county name, as listed on the 2023 metro map. An Oklahoma City restaurant study has to estimate covers by daypart against the seats and sales of nearby operators, build-out cost or rent against loans near the median, the option of buying the building through the 504 program, and the owner's experience; and it has to do this without the help of an outcome rate, which means the lender will rely more on the sponsor's own plan than on the area's history.