Restaurant Business Valuation
Restaurant Business Valuation Calculator & Exit Planning Built for Restaurant Owners
We built one platform that tracks your restaurant 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 Restaurant Owners Have No Idea What Their Business is Actually Worth
Current Restaurant Valuation Multiples (2026)
Restaurant values are strong due to increased buyer demand from restaurant groups, independent operators, first-time 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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 Restaurant Business Value
Revenue and earnings are the two most influential factors in your restaurant business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Prime Cost
Under 60%
Sales per square foot shows efficiency. Under $400/sf is struggling. This metric reveals whether you're maximizing your space—high sales per square foot indicates strong demand and efficient operations.
High prime cost = thin margins
Lease Terms
7+ Years Left
Food cost under 30% (28% ideal) shows kitchen efficiency and portion control. Food cost directly impacts margins—restaurants with tight food cost management are more profitable.
Short lease = major risk
Revenue Trend
Growing Sales
Labor under 30% (including management) indicates scheduling efficiency. Labor is typically the biggest controllable cost—restaurants that manage labor well are significantly more profitable.
Declining sales = declining value
Brand Strength
Strong Reputation
Concept and brand should be replicable and not dependent on the owner's persona. Personal chef-driven concepts don't transfer—systemized operations with documented recipes do.
No brand = commoditized
Management
GM + Chef
Lease terms with options to renew protect the location investment. Restaurants are location-dependent—short lease terms without options create existential risk that buyers avoid.
Owner in kitchen = unsellable
Concept Scalability
Replicable Model
POS data, inventory systems, and management reporting show professional operations. Detailed data enables better decision-making and proves to buyers that margins are real and trackable.
One-off = limited upside
How to Value a Restaurant
The U.S. restaurant industry includes over 1 million establishments generating more than $1 trillion in annual revenue. Restaurants are among the most frequently bought and sold businesses, but also among the riskiest — making accurate valuation essential.
Seller's Discretionary Earnings (SDE) is the standard valuation method for independent restaurants. Restaurants typically sell for 1.5x to 3.0x SDE. Establishments at the higher end have a strong brand, loyal customer base, efficient operations with food costs under 30%, and a management team that operates without the owner in the kitchen or front-of-house daily.
Revenue multiples for restaurants generally range from 0.25x to 0.50x annual revenue. Franchise restaurants with brand recognition and proven systems sometimes command higher multiples than independents because the operating playbook reduces buyer risk.
The unique challenge in restaurant valuation is the lease and concept transferability. A restaurant's value is inextricably tied to its location, and the lease is often the most critical asset. Buyers evaluate remaining lease term (10+ years ideal), rent-to-revenue ratio (under 8% is healthy), and whether the build-out and equipment convey with the sale. Concept strength also matters — a well-known local brand with strong reviews and a unique concept transfers more effectively than a generic restaurant that was successful solely because of the owner's personal presence.
Restaurant valuations have stabilized post-COVID, with strong concepts in desirable locations commanding solid prices despite industry headwinds from labor costs and food inflation. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do restaurant businesses sell for?
Most restaurant businesses sell for 1.5x – 2.5x SDE or 0.25x – 0.5x annual revenue. However, the range is wide. Companies with strong prime cost can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does prime cost affect my company's value?
Prime Cost is one of the biggest value drivers for restaurant businesses. Restaurant groups, independent operators, first-time 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 restaurant business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your prime cost, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys restaurant businesses?
Common buyers include restaurant groups, independent operators, first-time 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 restaurant businesses?
Most restaurant 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 (0.25x – 0.5x) are sometimes used as quick reference.
What's the fastest way to increase my restaurant business value?
The fastest improvements typically come from: 1) Improving your prime cost 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.