How To Value A Restaurant To Buy Apr 2026

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.

A restaurant usually sells for 25% to 40% of its annual gross revenue . 2. The "30-30-30-10" Benchmark how to value a restaurant to buy

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) Used for most independent, owner-operated restaurants

2.5x to 4.5x EBITDA , though strong brands with stable margins can reach higher. Used for most independent