Last updated: March 2026
Best Cities to Buy a Coffee Shop (2026 Rankings)
Top 15 Cities to Buy a Coffee Shop in 2026
| Rank | City | State | Population | State Income Tax | State Median Price |
|---|---|---|---|---|---|
| 1 | New York | New York | 8,516,202 | Yes | $401,492 |
| 2 | Houston | Texas | 2,300,419 | None | $225,000 |
| 3 | San Antonio | Texas | 1,458,954 | None | $225,000 |
| 4 | Dallas | Texas | 1,299,553 | None | $225,000 |
| 5 | Austin | Texas | 967,862 | None | $225,000 |
| 6 | Fort Worth | Texas | 941,311 | None | $225,000 |
| 7 | El Paso | Texas | 678,147 | None | $225,000 |
| 8 | Jacksonville | Florida | 961,739 | None | $325,000 |
| 9 | Los Angeles | California | 3,857,897 | Yes | $325,000 |
| 10 | Seattle | Washington | 741,440 | None | $325,000 |
| 11 | Las Vegas | Nevada | 650,873 | None | $325,000 |
| 12 | Chicago | Illinois | 2,707,648 | Yes | $325,000 |
| 13 | Philadelphia | Pennsylvania | 1,582,432 | Yes | $288,888 |
| 14 | Denver | Colorado | 713,734 | Yes | $250,000 |
| 15 | Phoenix | Arizona | 1,624,832 | Yes | $325,000 |
Why These Cities Rank Well for Coffee Shop Acquisitions
New York, NY ranks highly due to a population of 8,516,202. Median household income of $79,713 supports strong local demand.
Houston, TX ranks highly due to a population of 2,300,419, no state income tax, below-average state acquisition costs. Median household income of $62,894 supports strong local demand.
San Antonio, TX ranks highly due to a population of 1,458,954, no state income tax, below-average state acquisition costs. Median household income of $62,917 supports strong local demand.
Dallas, TX ranks highly due to a population of 1,299,553, no state income tax, below-average state acquisition costs. Median household income of $67,760 supports strong local demand.
Austin, TX ranks highly due to a substantial population of 967,862, no state income tax, below-average state acquisition costs. Median household income of $91,461 supports strong local demand.
How Is This Ranking Calculated?
These rankings use a composite score based on three factors: city population (40% weight), state-level acquisition affordability (30% weight), and state tax environment (30% weight). Population measures market size and customer base. Affordability uses the inverse of the state median asking price for coffee shop listings, so states with lower prices score higher. Tax environment gives a full score to states with no personal income tax and a partial score to states that do levy one. Only cities with existing acquisition guide content are included.
How to Finance Your Coffee Shop Acquisition
Most coffee shop acquisitions in the SBA price range ($100K to $5M) are financed with an SBA 7(a) loan. The standard structure is 80% to 85% SBA loan at current rates (approximately 10% to 11% based on WSJ Prime), a 15% to 20% seller note on full standby at 0% interest, and a 5% buyer cash equity injection. The total equity injection is 10%, split between the buyer's cash and the seller note.
The full-standby seller note eliminates a second debt service obligation during the SBA loan term. On a median-priced coffee shop acquisition at $325,000, the buyer's out-of-pocket cash is approximately $16,250.
Frequently Asked Questions
What is the best city to buy a coffee shop?
New York, NY ranks as the top city to buy a coffee shop in 2026 based on market size, acquisition affordability, and tax environment. It has a population of 8,516,202 and a median household income of $79,713.
How much does it cost to buy a coffee shop?
The national median asking price for a coffee shop is $325,000. With SBA 7(a) financing, the buyer's cash equity injection is typically 5% of the purchase price (approximately $16,250), with a 15% to 20% seller note on full standby covering the rest of the required 10% equity injection.
Which states have no income tax for coffee shop owners?
Among the top-ranked cities, Houston, TX, San Antonio, TX, and Dallas, TX are in states with no personal income tax. This means business owners keep more of their operating income and cash flow, which improves the effective return on acquisition.
Ready to acquire a coffee shop? Regalis Capital helps buyers find and close deals across the country.
Start Your Acquisition