SBA 7(a) Coffee Shop Feasibility Study in Kansas

Kansas cafes: more than half franchised

Coffee shops and snack bars in Kansas are heavily franchised and clustered in one suburban county. SBA's 7(a) file holds 71 loans for FY2017 to FY2026 and $31.8 million in gross dollars, and 59.2% of them carry a franchise flag. The Kansas median of $250,000 equals 1.11x the nationwide cafe figure, so borrowers here sit above the norm. Loans in the middle half range between $100,000 and $552,000. The state is 29th nationally on count, and the class holds 8 of 39 among Kansas's financed industries.

Johnson County and little else

Johnson County has 31 loans against Sedgwick County's 10, and Shawnee has 6. Douglas and Riley have 3 each, and the remaining counties in the top ten have 2 each. The only lender the table lists is Silver Lake Bank, with 5 loans; the list is a set of present holders and implies nothing about other banks that may hold Kansas cafe loans in smaller numbers. Annual counts moved between 3 and 16: 12 in FY2019, 3 in FY2024, and then 16 loans worth $10.3 million in FY2025.

Cancellation and a charge-off floor that matters

Within the Kansas cafe loans approved FY2017 to FY2024, 6.1% or more never funded, and that is the ceiling as well. The charge-off figures carry more weight: among the 33 seasoned loans funded FY2017 to FY2021, the floor is 9.1% to date and 6.1% on the five-year view. Some losses therefore arrived after the fifth year, and a brand name did not prevent them. Both are floors on a small cohort.

What a Kansas cafe study has to test

In a franchised unit the franchisor's numbers are a starting point and not evidence for the site: the study should replace them with traffic counts, nearby competitors and the incomes of the households around it. Royalties, advertising contributions, required equipment and remodel cycles reduce cash flow and belong in the payment test. A median near $250,000 and an upper range past $552,000 point to buildouts with drive-through lanes or purchased buildings, and the study should state which. Johnson County has the most loans on the list, so competition is the first question there. Winter and summer sales differ, and the cushion needed for the slower season should be shown. A single industry code spans cafes and snack bars alike, so each figure mixes the two.