Restaurant Feasibility Study in the Palm Bay-Melbourne-Titusville, FL Metro Area

Palm Bay restaurant: a restaurant class that leads its own area

On full-service restaurant loans the area ranking puts Palm Bay, Melbourne and Titusville at 77 of 821, while on the metro's own list of classes, full-service restaurant comes first of 39. The location quotient of 1.18x shows restaurants carry more weight on the Space Coast than in the country at large. The files hold 68 loans for $44.6 million, FY2017 to FY2026, all of them in Brevard County. In Palm Bay, Melbourne and Titusville the restaurant median, $375,000, is 1.36x of the countrywide figure; usual loans run $100,000 to $775,875.

SBA 7(a) accounts for 57 of the Palm Bay, Melbourne and Titusville restaurant loans, SBA 504 for 11. Franchise brands account for 14.7%, so most loans carry no franchise flag. TD Bank, National Association holds 7 loans but only $200,000 in all, a pattern of very small credits; Newtek Bank, National Association holds 5 for $1.3 million and BayFirst National Bank holds 5 for $1.0 million. The lender lines reflect who holds each loan on SBA’s record, and imply no verdict on TD Bank, National Association.

At least 10.9% of the FY2017 to FY2024 restaurant approvals in the area were cancelled, counting recorded cases only. Two outcome figures are withheld by Loan Analytics here: the upper bound for cancellations and the rate of write-offs. Too few loans stand behind them, so read both as missing. Printed fiscal years for Palm Bay, Melbourne and Titusville: 7 loans and $4.2 million in FY2017, 12 and $9.5 million in FY2018, 9 and $8.0 million in FY2022, 10 and $6.2 million in FY2025, and 12 and $7.1 million in FY2026.

Palm Bay restaurant: what a restaurant study on the Space Coast has to test

A study for a full-service restaurant here has to test seating and turn assumptions, food and labor cost, seasonal swings in demand, lease terms against projected sales, and coverage of debt service under variable traffic. Where a buyer acquires an operating restaurant, the appraisal has to price goodwill and equipment apart from the lease. Placement of restaurant loans in the Palm Bay, Melbourne and Titusville area rests on the county of each project, read against the July 2023 map, and any loan from an unplaced county is skipped. These figures are context for a restaurant study in the area, and approval is the lender’s call.