Restaurant value at a glance
Estimate your restaurant's value
Applies the cited SDE multiple band for your trade, then positions you inside it using recurring revenue, customer concentration, owner dependence, years operating and trend. Educational estimate, not an appraisal.
Educational estimate, not an appraisal or an offer. Ranges come from published closed-sale data and broker/adviser reports cited on each trade page; the adjustment weights are our own documented heuristic (see Editorial policy). Real estate, inventory and working capital are excluded.
Get the full valuation brief (printable)
Your inputs and range, the cited multiples behind it, the buyer type active at your size, three changes that move the multiple, and next steps - on this page, ready to print or save as a PDF.
Published restaurant multiples by deal size
| Deal size / buyer | Multiple | Source |
|---|---|---|
| Main Street restaurant sales, 2021-2025 (sold) | 1.34-2.53x SDE (average 2.15x); 0.39x revenue; median price $220,000 | |
| Multi-unit franchise portfolios (context) | Priced individually; the largest recent example, RBI buying Carrols (1,023 Burger Kings), was an all-cash deal at about $1.0B enterprise value | RBI - Burger King Company completes acquisition of Carrols Restaurant Group (May 16, 2024) |
| All industries, Q2 2026 (context) | Under $500K deals: 2.0x SDE; $2M-$5M: 4.0x EBITDA; $5M-$50M: 5.8x EBITDA | IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights |
What moves the multiple for a restaurant
Key metric buyers ask for: Trailing-12-month sales and SDE, prime cost (food + labor) as a share of sales, rent as a share of sales, lease term remaining, liquor license type.
Pushes you toward the top of the range
- A long, assignable lease at a rent the business can carry (buyers and SBA lenders check the term covers the loan)
- Stable or growing sales documented in POS reports that match tax returns
- Prime cost under control and a menu that does not depend on the selling owner-chef
- A transferable liquor license where alcohol is a material share of sales
Pushes you toward the bottom
- A lease with little term left, a demolition clause or a landlord unwilling to assign
- Cash sales that are not on the tax returns (buyers and lenders will not pay for them)
- The owner as head chef or key personality with no trained replacement
- Deferred equipment maintenance or code issues a health inspection will surface
How buyers value a restaurant
Independent restaurants are usually priced as a multiple of SDE, with a revenue multiple as a sanity check. Many sell as “asset sales” near the value of equipment and leasehold improvements when earnings are thin. Franchise units are valued similarly but need franchisor approval and often a transfer fee and remodel commitment.
Rule of thumb on revenue: BizBuySell sold restaurants averaged 0.39x revenue (2021-2025). Use it only as a sanity check; buyers pay for cash flow they can finance.
Worked example: Main Street Bistro (fictional)
Fictional business for illustration. Revenue $900,000, SDE $150,000. Leased space with 8 years left, beer and wine license, owner works the floor but not the line.
| Position in the cited range | Implied value | Multiple of revenue |
|---|---|---|
| At the low end (1.34x) | $201,000 | 0.22x |
| Midpoint (1.94x) | $290,000 | 0.32x |
| At the high end (2.53x) | $379,000 | 0.42x |
Who buys a restaurant at each size
Individual owner-operators (often SBA-financed) buy most independents; experienced operators and multi-unit franchisee groups buy larger or franchised units. See who is buying restaurants for named acquirers and their sponsors.
| SDE / EBITDA size | Most likely buyer | How they usually pay |
|---|---|---|
| Under ~$300K SDE | First-time owner-operators with SBA financing | SBA or bank loan plus buyer cash; sometimes a seller note |
| ~$300K-$1M SDE | Experienced operators and multi-unit owners | SBA loan, seller note, or cash from a larger buyer |
| $1M+ EBITDA | Multi-unit franchisee groups and restaurant companies | Mostly cash at close; rollover equity and earn-outs are common |
Thinking about selling your restaurant?
See the step-by-step sale process, license transfer rules and documents buyers will ask for.
Frequently asked questions
What is the average multiple for a restaurant?
BizBuySell’s closed-sale data for 2021-2025 shows an average of 2.15x SDE, with the middle half of sales between 1.34x and 2.53x, and about 0.39x revenue.
How much is a restaurant worth with no profit?
Roughly what a buyer would pay for the equipment, build-out and lease position - often far below what was invested. Buyers pay multiples only on documented earnings.
Is this an appraisal?
No. It is an educational estimate built from published data. Lenders, courts and the IRS may require a credentialed appraisal; see appraisal vs estimate.
Sources
- BizBuySell Valuation Benchmarks - Restaurants (accessed 2026-09-23)
- BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)
- RBI - Burger King Company completes acquisition of Carrols Restaurant Group (May 16, 2024) (accessed 2026-09-23)