What is my restaurant worth?

Restaurants are the most-traded main-street business on BizBuySell (over 8,600 sales analyzed in its restaurant benchmarks), and they sell at some of the lowest multiples. Buyers pay for proven owner earnings, a transferable lease and a location, and they discount anything that depends on the owner being in the kitchen.

Avg SDE multiple

2.18×

Typical range

1.34–2.53×

Avg revenue multiple

0.39×

Median sale price

$220K

BizBuySell industry row: Restaurants, plus BizBuySell's restaurant sold-business quartiles. Range is BizBuySell's sold-business lower to upper quartile (median 1.85×). Median sold business: $718,271 revenue, $120,355 owner earnings. Source: BizBuySell — Business Valuation Multiples by Industry (businesses sold Q3 2021–Q2 2026); BizBuySell — Restaurant Valuation Benchmarks (sold 2021–2025, 8,692 sales analyzed).

Value your restaurant

Let's estimate what your business is worth. Seven quick questions, no email needed.

Trade: Restaurant ·

Which state is it in?

Worked example

Hypothetical. A full-service neighborhood restaurant close to BizBuySell's median sold restaurant (about $718K revenue and $120K owner earnings). The owner works the floor four nights a week; a kitchen manager runs the line.

Revenue $720,000, owner earnings (SDE) $120,000, 8 years, about 5% recurring, “I work in it part of the time”.
Start at the published 2.18× average.
Recurring revenue under 10%: -0.10×. Almost all revenue must be re-won every year.
Owner earnings $75K–$150K: -0.10×. Below the typical sold main-street business.
Adjusted multiple 1.98× × $120,000 = $238,000, range $148,000 – $280,000.
Revenue cross-check: $720,000 × 0.39× = $281,000.

What raises the price

Several years of clean, tax-return-backed owner earnings
A long lease with options at a fair rent (occupancy cost well under 10% of sales)
A kitchen manager and chef who will stay
Steady catering, delivery or private-event revenue
Strong reviews and a brand that is not the owner's name

What lowers it

Owner cooking or managing every shift
Short lease or a landlord who won't assign it
Cash sales not reported in the books
Falling sales or tired equipment and decor
A franchise agreement with a costly transfer or remodel requirement

Calculating SDE for a restaurant

Start from net profit on your tax return or P&L, then add back:

Owner salary and payroll taxes
Family meals and personal expenses run through the business
Depreciation on kitchen equipment and build-out
Interest on equipment or SBA loans
One-time repairs, remodels or pre-opening costs

Only add back what a buyer can verify. See SDE explained: how to calculate owner earnings and add-backs for a full walkthrough.

If there are two working owners, the second owner's salary usually stays as a cost, because a buyer will need to replace that person.

Questions

Do restaurants sell for a multiple of revenue?

Rarely. BizBuySell's average is only 0.39× revenue because margins vary so much. Buyers and SBA lenders price on owner earnings, and they check them against tax returns and sales-tax filings.

What if my restaurant isn't profitable?

Then buyers usually pay for the lease, build-out and equipment (an 'asset sale'), not an earnings multiple. That price depends on the location and is outside what this calculator estimates.

How this estimate works

We start from the published average multiple for businesses in this category that actually sold, adjust it for owner involvement, recurring revenue, track record and size, and apply it to your owner earnings. Read the full valuation methodology, including what we don't do.

Related trades

Compare other trades

Trade	Avg SDE multiple	Avg revenue multiple	Median sale price	Basis
Plumbing	2.61×	0.69×	$699,000	Trade row
HVAC	2.83×quartiles 1.99–3.33×	0.60×	$750,000	Trade row
Electrical	2.77×	0.63×	$1,009,000	Trade row
Landscaping	2.49×	0.72×	$449,950	Trade row
Pool service / routes	2.61×	0.83×	—	Sector average (no trade row)
Pest control	2.46×quartiles 1.69–3×	1.01×	$250,000	Trade row
Cleaning	2.25×	0.72×	$281,500	Trade row
Roofing	2.65×	0.59×	$750,500	Sector average (no trade row)
Auto repair	2.85×	0.65×	$430,000	Trade row
Salon / barbershop	2.10×	0.52×	$117,375	Trade row
Restaurant	2.18×quartiles 1.34–2.53×	0.39×	$220,000	Trade row
Daycare / child care	3.28×quartiles 1.94–4.03×	0.88×	$380,000	Trade row
Dental practice	2.75×quartiles 1.6–3.37×	0.76×	$350,000	Trade row
Gym / fitness center	2.54×quartiles 1.72–3×	0.70×	$204,000	Trade row
Insurance agency	2.87×quartiles 1.88–3.44×	1.52×	$500,000	Trade row
Accounting / tax / bookkeeping	2.27×quartiles 1.61–2.66×	1.08×	$450,000	Trade row
Moving company	2.52×quartiles 1.8–3.11×	0.63×	$350,000	Trade row
IT services / MSP	3.22×quartiles 2.2–3.87×	1.08×	$726,800	Trade row
Locksmith	2.35×	0.75×	$300,000	Trade row
Pet grooming	2.30×quartiles 1.38–2.51×	0.63×	$152,500	Trade row
Other main-street business	2.61×	0.83×	$350,000	General main-street range

Source: BizBuySell, Business Valuation Multiples by Industry, businesses sold Q3 2021–Q2 2026; quartiles from BizBuySell's per-industry valuation benchmark pages (sold 2021–2025). Pool and roofing use sector averages; “Other” uses the Service Businesses sector. Retrieved Oct 30, 2026.

Estimates for information only; not an appraisal or an offer. MainStreetKeys is not a business broker. Data retrieved Oct 30, 2026.