Restaurant Business Valuation
Restaurants range from quick service to fine dining. Manager-operated locations with strong unit economics attract buyers.
1.5x - 4x
SDE Multiple
3x - 6.5x
EBITDA Multiple
$200K - $5M
Typical Deal Size
2.5x
Mid-Market SDE
Market Overview
The US restaurant industry generates over $900 billion annually, with continued growth in fast casual and delivery segments.
What PE Buyers Look For
- Strong brand and concept
- Manager-operated locations
- Catering and off-premise
- Franchise model potential
- Real estate considerations
Valuation Factors
Value Drivers
- +Strong brand/concept
- +Multiple locations
- +Manager-operated
- +Catering/off-premise revenue
Value Detractors
- -Owner-operated
- -Single location
- -Declining sales trends
- -Short lease term
Key Metrics Buyers Evaluate
When evaluating a Restaurant business, buyers focus on specific metrics that indicate health, stability, and growth potential.
- 1Same-store sales trends
- 2Labor cost percentage
- 3Food cost percentage
- 4Unit-level profitability
- 5Delivery revenue mix
Typical Deal Structure
Restaurant deals typically follow this structure:
- 60-75% cash at close
- 20-30% seller note or earnout
- Real estate separate or included
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Restaurant Markets by State
Explore Restaurant acquisition opportunities and market data across major states.
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