SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026
Full-Service Restaurants Franchise Failure Rates: SBA Loan Defaults for 15 Brands
Full-Service Restaurants franchises charged off 9.6% of SBA 7(a) loans approved FY2010–FY2019, versus 10.2% for all franchises and 8.0% for all SBA borrowers. This page tracks 15 brands: default rates ranged from IHOP (0.0%) to Steak n Shake (21.7%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
How do Full-Service Restaurants franchises perform on SBA loans?
Across the 15 Full-Service Restaurants brands tracked here, 534 SBA 7(a) loans were approved between fiscal 2010 and 2019 and 56 were charged off — a pooled rate of 10.5% for these brands against a 9.6% benchmark for all Full-Service Restaurants franchise loans. 4 brands with 20+ loans ran at more than twice the industry benchmark; 0 brands with 40+ loans recorded zero defaults. Statuses as of June 30, 2026.
- Brands tracked15
- SBA 7(a) loans, FY2010–2019534
- Charged off56
- Pooled rate, these brands10.5%
- Full-Service Restaurants benchmark (all franchise loans)9.6%
- All-franchise benchmark10.2%
- All SBA borrowers8.0%
- Lowest rateIHOP · 0.0%
- Highest rateSteak n Shake · 21.7%
Which Full-Service Restaurants franchise brands have the highest and lowest SBA default rates?
Every Full-Service Restaurants brand with at least five resolved SBA 7(a) loans, sorted from highest to lowest default rate. Click a column heading to re-sort; use the filter to find a brand.
| Brand | Loans | Defaults | Rate | vs industry avg | Loans since 2020 | Early charge-offs |
|---|---|---|---|---|---|---|
| Steak n Shake | 23 | 5 | 21.7% | 2.3x | 0 | 0 |
| Huddle House | 25 | 5 | 20.0% | 2.1x | 5 | 1 |
| Rosati's Pizza | 45 | 9 | 20.0% | 2.1x | 39 | 0 |
| Wings Etc. | 25 | 5 | 20.0% | 2.1x | 8 | 0 |
| Mellow Mushroom | 79 | 12 | 15.2% | 1.6x | 10 | 0 |
| Fox's Pizza Den | 19 | 2 | 10.5%* | 1.1x | 19 | 1 |
| Golden Corral | 68 | 7 | 10.3% | 1.1x | 27 | 0 |
| Temporary Franchises | 89 | 9 | 10.1% | 1.1x | 0 | 0 |
| Buffalo Wings & Rings | 15 | 1 | 6.7%* | 0.7x | 3 | 0 |
| Denny's | 31 | 1 | 3.2% | 0.3x | 18 | 0 |
| Buffalo Wild Wings (f/k/a BW-3 (buffalo Wings | 19 | 0 | 0.0%* | — | 0 | 0 |
| Denny's Restaurant | 25 | 0 | 0.0% | — | 0 | 0 |
| IHOP | 35 | 0 | 0.0% | — | 15 | 0 |
| International House of Pancakes | 16 | 0 | 0.0%* | — | 0 | 0 |
| Pieology | 20 | 0 | 0.0% | — | 2 | 0 |
* Small sample (5–19 loans): rate shown for completeness; treat as a diligence flag, not a verdict. Loans since 2020 and early charge-offs are counts only — that cohort is too young for a rate.
Frequently asked
- Which Full-Service Restaurants franchises have the highest SBA default rates?
- Among Full-Service Restaurants brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were Steak n Shake (21.7%), Huddle House (20.0%), Rosati's Pizza (20.0%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
- What is the Full-Service Restaurants franchise SBA default rate benchmark?
- Full-Service Restaurants franchise borrowers charged off 9.6% of SBA 7(a) loans approved FY2010–FY2019, compared with 10.2% for all franchises and 8.0% for all SBA borrowers.
Cite this page
Franchise Default Rates (2026). Full-Service Restaurants franchise SBA 7(a) default rates, FY2010–FY2019 cohort: 15 brands, pooled 10.5%. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/industry/full-service-restaurants/ · Data & methodology · Download the dataset (CSV)