How To Value A Restaurant To | Buy

Usually slightly lower, between 1.5x and 2.5x SDE .

Used for most independent, owner-operated restaurants. It is net profit plus "add-backs" like the owner’s salary, personal travel, and one-time repairs.

Used for larger operations or multi-unit groups where the owner isn't the daily manager. how to value a restaurant to buy

Typically trade at 2.1x to 3.0x SDE .

A restaurant usually sells for 25% to 40% of its annual gross revenue . 2. The "30-30-30-10" Benchmark Usually slightly lower, between 1

A "solid story" restaurant follows the industry-standard :

Most restaurants are valued using a multiple of their earnings. The choice of metric depends on the size of the business. Used for larger operations or multi-unit groups where

To value a restaurant correctly, you must look beyond the daily "buzz" and focus on what the business actually puts in an owner’s pocket. The "solid story" isn't just about high sales; it's about the and the strength of its lease . 1. Master the Multiples (The Math)