Catering Business Valuation
Catering Business Valuation Calculator & Exit Planning Built for Business Owners
We built one platform that tracks your catering business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Catering Owners Have No Idea What Their Business is Actually Worth
Current Catering Valuation Multiples (2026)
Catering values are strong due to increased buyer demand from hospitality companies, event venues, individual buyers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Catering Business Value
Revenue and earnings are the two most influential factors in your catering business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Corporate Revenue
50%+ Corporate
Corporate recurring contracts provide predictable revenue. Regular corporate accounts create baseline revenue—one-time events are unpredictable and seasonal.
Event-only = unpredictable cash
Venue Relationships
Preferred Vendor
Average event revenue over $3,000 shows you're targeting profitable events. Small events have similar labor requirements as large ones—higher average ticket indicates better positioning.
No relationships = hard selling
Production Capacity
Commercial Kitchen
Diverse event types (weddings, corporate, social) reduce seasonal risk. Catering is seasonal—diversification across event types smooths revenue throughout the year.
No kitchen = constraints
Team Depth
Executive Chef+
Strong venue relationships and preferred vendor status drive leads. Being on venue preferred lists creates consistent referrals—these relationships often transfer with the business.
Owner-chef = can't be sold
Food Cost
Under 30%
Event management software and CRM show professional operations. Systems for proposals, event management, and follow-up demonstrate scalable processes beyond spreadsheets.
High food cost = pricing problems
Deposit Policy
50%+ Deposits
Production kitchen separate from events enables scale. Commissary operations support multiple events simultaneously—kitchen capacity often limits catering growth.
No deposits = cash flow problems
How to Value a Catering Business
The U.S. catering industry generates approximately $14 billion in annual revenue across thousands of catering companies ranging from home-based operators to large event caterers. Catering businesses are valued based on their client relationships, event pipeline, and operational infrastructure.
Seller's Discretionary Earnings (SDE) is the primary valuation method. Catering businesses typically sell for 1.5x to 3.0x SDE. Companies at the higher end have corporate contract accounts, preferred vendor relationships with event venues, a commercial kitchen, and staff capable of executing events without the owner managing every detail.
Revenue multiples for catering businesses generally range from 0.20x to 0.45x annual revenue. Companies with corporate catering contracts that provide recurring weekly revenue command higher multiples than those dependent entirely on one-time event bookings.
The unique valuation factor in catering is the venue relationship pipeline and corporate accounts. Caterers on preferred vendor lists at wedding venues, corporate event spaces, and hotels have a built-in lead generation system. Corporate meal program contracts — daily office lunches, recurring meeting catering — create predictable revenue that transforms a seasonal event business into a year-round operation. Buyers also evaluate kitchen capacity, equipment, health department licensing, and liquor licensing where applicable.
The catering industry has rebounded strongly from COVID disruptions, with corporate events and weddings returning to pre-pandemic levels. Companies with online ordering platforms and efficient delivery logistics have gained a competitive edge. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do catering businesses sell for?
Most catering businesses sell for 1.5x – 2.5x SDE or 0.3x – 0.5x annual revenue. However, the range is wide. Companies with strong corporate revenue can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does corporate revenue affect my company's value?
Corporate Revenue is one of the biggest value drivers for catering businesses. Hospitality companies, event venues, individual buyers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my catering business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your corporate revenue, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys catering businesses?
Common buyers include hospitality companies, event venues, individual buyers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for catering businesses?
Most catering businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.3x – 0.5x) are sometimes used as quick reference.
What's the fastest way to increase my catering business value?
The fastest improvements typically come from: 1) Improving your corporate revenue to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.