For buyers, sellers & investors
Restaurant Valuation Calculator
Estimate the value of your restaurant using industry valuation multiples and financial benchmarks.
Whether you're buying, selling, raising capital, or evaluating a franchise opportunity, restaurant valuation starts with Seller's Discretionary Earnings (SDE) and the right industry multiple. This tool estimates your business value as a range — never a false-precision single number.
- SDE = net profit + owner compensation + discretionary add-backs
- Independent restaurants typically sell for 1.8x–3.5x SDE depending on concept
- Revenue multiples (0.3x–0.6x) are secondary for thin-margin concepts
Used by business buyers, sellers, SBA lenders, and franchise investors evaluating Main Street restaurant acquisitions.
Restaurant Information
Enter financials from your P&L or tax returns.
Linked to revenue & profit when you update those fields. Edit SDE directly to override.
Estimated Business Value
$610,000
Valuation Range
Low Estimate
$540,000
Expected Value
$610,000
High Estimate
$680,000
Restaurant Valuation Summary
- Estimated Value
- $610,000
- Revenue
- $850,000
- Profit Margin
- 8%
- SDE Multiple
- 3.1x
- Benchmark Ranking
- Strong
Valuation Multiple Breakdown
How your valuation translates across common pricing methods.
Revenue Multiple
0.7x
Value ÷ annual revenue
SDE Multiple
3.1x
Primary method for Main Street sales
EBITDA Multiple
2.9x
Used for larger or absentee-owned ops
How Your Restaurant Compares
Your valuation multiple
3.1x SDE
Industry median
2.5x SDE
Value Drivers
Factors affecting your valuation multiple based on your inputs.
Factors Increasing Value
- Consistent profitability
- Long operating history
- Strong SDE supports SBA and conventional financing
Factors Reducing Value
- Single-location concentration risk
- Owner-dependent operations
What-If Scenarios
Model how operational improvements could change your valuation.
Current margin: 8%
Add Second Location
Models valuation impact of an additional unit
Valuation Multiples by Restaurant Type
| Restaurant Type | Typical Multiple |
|---|---|
| Food Truck | 1.5x – 2.5x SDE |
| Coffee Shop | 2.0x – 3.0x SDE |
| Casual Dining | 2.0x – 3.5x SDE |
| Fine Dining | 2.0x – 4.0x SDE |
| Fast Casual | 2.0x – 3.5x SDE |
| Bakery | 2.0x – 3.0x SDE |
Business Sale Readiness
How prepared your restaurant is for a successful sale process.
60
/ 100
- Profitable
- Financial records available
- Multiple years operating
- Manager-operated
- Multiple locations
Frequently Asked Questions
How much is a restaurant worth?
Most independent restaurants are worth 1.5x–4.0x their Seller's Discretionary Earnings (SDE), depending on concept type, location, and transferability. A restaurant with $200K SDE at a 3.1x multiple would be valued around $620,000. Always use a range — not a single number — when negotiating.
What multiple do restaurants sell for?
SDE multiples vary by concept: food trucks 1.5x–2.5x, coffee shops and bakeries 2.0x–3.0x, casual and fast casual 2.0x–3.5x, fine dining 2.0x–4.0x. The industry median for independent restaurants is approximately 2.5x SDE. Revenue multiples of 0.3x–0.6x are sometimes used for high-volume concepts.
How is restaurant valuation calculated?
The standard method for restaurants under $5M revenue is SDE × industry multiple. SDE equals net profit plus owner salary, benefits, and discretionary expenses a new owner wouldn't incur. The multiple adjusts for concept type, number of locations, owner dependency, operating history, and profitability.
What increases restaurant value?
Factors that increase valuation multiples include: manager-operated (not owner-dependent) operations, multiple locations, 8+ years of operating history, consistent profitability above 8% net margin, clean financial records, and transferable lease terms. Strong brand recognition in the local market also helps.
What decreases restaurant value?
Valuation discounts apply for: heavy owner dependency, single-location risk, margins below 5%, declining revenue trends, short operating history, deferred maintenance, unfavorable lease terms, and customer concentration. Restaurants requiring full-time owner presence typically sell at lower multiples.