What is your restaurant worth? Estimate your sale price based on SDE multiples, restaurant type, lease terms, and liquor license value.
BizBuySell has the largest database of restaurants for sale in the US. Connect with qualified restaurant buyers who understand the industry. Free listing valuation tools included.
List Restaurant on BizBuySell →Need restaurant profitability ratios programmatically? The 61tools API calculates prime cost ratio, food cost %, labor cost %, and 12+ more metrics from raw inputs.
Get API Access →Restaurant valuations are unique because they combine business cash flow value with asset value (FF&E), location value (lease), and sometimes license value (liquor). Unlike most businesses, a restaurant with negative or zero SDE can still have significant asset value that a buyer wants to acquire.
A restaurant with fewer than 3 years on the lease is extremely difficult to sell because buyers risk losing the location. Conversely, a restaurant with 10+ years remaining on a below-market lease in a prime location has significant intrinsic value beyond the cash flow. Always check whether the lease is assignable (most commercial leases require landlord consent for business sales) before starting the sale process.
Restaurant equipment (ovens, refrigerators, POS systems, tables, chairs) is valued at 60-80% of replacement cost. A fully equipped kitchen with $300,000 of equipment might be valued at $180,000-$240,000 in a business sale. Buyers perform an independent equipment appraisal during due diligence. Well-maintained, newer equipment increases the asset base and justifies higher asking prices.
Prime cost (food + labor as % of revenue) is the most important restaurant operational metric. Below 65% indicates a well-run operation. Above 70% signals margin problems that will reduce the SDE and the multiple. Buyers calculate trailing 12-month prime cost to assess management quality and pricing power.
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