Food and restaurant businesses are among the most common businesses that are bought and sold on BizBuySell. Whether you are a buyer or a seller, it is helpful to understand the market trends. To provide some context, we have analyzed restaurant for sale listings and aggregated financial data to help you compare and evaluate individual restaurant businesses.
Market Snapshot
Number of Businesses Analyzed
|
7,188
|
Median Asking Price
|
$322,500
|
Median Reported Revenue
|
$794,905
|
Median Reported Earnings
|
$150,000
|
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings.
|
Valuation Multiples
Range
|
Revenue
|
Earnings (SDE)
|
Lower Quartile
|
0.29
|
1.77
|
Median
|
0.41
|
2.41
|
Upper Quartile
|
0.61
|
3.19
|
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price.
|
Read the Report:
Restaurant Business Valuation Benchmarks
FAQs
How much does it cost to buy a restaurant?
The median asking price for restaurants analyzed is $322,500. However, prices can range significantly higher or lower depending on specific factors. The cost of buying a restaurant can vary widely based on location, size, type, and the financial health of the business.
How much do restaurant owners earn?
The median reported revenue and discretionary earnings for restaurant businesses listed for sale is $794,905 and $140,272, respectively. Earnings can vary greatly depending on the type of restaurant, location, management efficiency, and market demand.
How do I value a restaurant business?
Valuing a restaurant business involves analyzing several factors, including annual revenue, earnings, profit margins, location, brand reputation, and physical assets. Most business owners (and buyers) will look at earnings and revenue multiples to gauge the value of a restaurant business relative to its peers in the market.
Based on our most recent analysis, sellers are looking for a revenue multiple between 0.29 and 0.61, with the median at 0.41. Earnings multiples range from 1.77 to 3.19, with the median at 2.41. So, a typical restaurant business will be priced around 0.41 times its annual sales, and 2.41 times its owner's annual discretionary earnings.
More for Business Buyers:
More for Business Sellers: