How to Sell Your Restaurant Business
Restaurant valuations vary widely based on concept scalability, lease terms, and owner involvement. Multi-unit operations and franchise concepts command higher multiples.
EBITDA Multiple
2x – 4x
SDE Multiple
1.5x – 2.5x
Typical Revenue
$500K–$5M
Avg. Timeline
4–8 months
What Drives Restaurant Valuation
Buyers evaluating restaurant businesses focus on these key factors when determining what multiple to offer:
- Lease terms and rent-to-revenue ratio (under 10%)
- Management team that operates without the owner
- Consistent revenue and margin trends
- Liquor license and permits
- Online reviews and brand strength
- Scalable concept (replicable menu, systems)
Who Buys Restaurant Businesses
- Restaurant groups and operators
- Franchise organizations
- Individual owner-operators
- Hospitality investment groups
Example: Restaurant Valuation
A restaurant business with $500,000 in EBITDA would typically be valued at:
Low estimate (2x)
$1.0M
High estimate (4x)
$2.0M
Use the Business Valuation Calculator with your actual numbers.