Restaurant Feasibility Study in Wisconsin

A restaurant market at its national weight

Wisconsin holds full-service restaurant lending almost exactly at its national weight, with a location quotient of 0.99x, and the class ranks 1 of 39 in Wisconsin. Wisconsin ranks 16 of 54 states for these loans: 651 approvals worth $319.1 million from FY2017 to FY2026. The Wisconsin median loan of $290,000 is 1.05x the national median, and neither the median nor the Wisconsin outcome floors reach the distinctness margin against both Wisconsin lending and full-service dining nationally, so national restaurant evidence carries over here with little adjustment.

WBD, Inc. and the 504 route

The program mix is where Wisconsin looks different on the page. SBA 504 carried 134 Wisconsin approvals against 517 under SBA 7(a), and WBD, Inc. is the current holder of 115 of those 504 loans, worth $79.0 million. Racine County Economic Development Corporation holds 12. For a restaurant owner buying a building in Wisconsin, WBD, Inc. handles most of the 504 market, so a Wisconsin 504 borrower should expect that company to review the project alongside the first-lien bank.

The 7(a) side is spread thin. Byline Bank holds 30 Wisconsin loans worth $29.2 million, Nicolet National Bank 28, Summit CU 24, Wisconsin Women's Business Initiative Corporation 23 worth $3.2 million and U.S. Bank, National Association 22. Franchise concepts are 7.1% of loans; independents dominate. The middle half of Wisconsin loans ran from $134,250 to $612,000.

Floors and the study

Wisconsin restaurant approvals from FY2017 to FY2024 saw at least 7.9% cancelled, and 8.3% at the ceiling. Of 305 Wisconsin loans disbursed FY2017 to FY2021, charge-off has claimed at least 5.2%, with 3.6% inside five years of approval. Volume reached 75 approvals in FY2025, worth $52.3 million, after only 48 worth $23.7 million in FY2023.

A feasibility study for a Wisconsin restaurant should measure demand in its own trade area, whether in Milwaukee County with 107 approvals, Waukesha with 61, Dane with 58 or Brown with 32, and account for seasonal swings where lake or tourist traffic matters. Cost has to separate building and equipment where 504 is in play. Debt service coverage should rest on sales the operator has achieved, and the Wisconsin appraisal has to carry the real estate for a buyer outside the restaurant trade, since that is the collateral the 504 lenders hold.