How to value restaurants?
Does anyone have any experience in valuing restaurants?
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by a searcher
from University of Notre Dame
in Houston, TX, USA
in Houston, TX, USA
5mos ago
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by a professional-advisory
5mos ago
from University of Notre Dame in Houston, TX, USA
from University of Notre Dame in Houston, TX, USA
Feel free to use our restaurant valuation calculator here: redacted
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by a searcher
5mos ago
from Montclair State University in Madison, WI, USA
from Montclair State University in Madison, WI, USA
It really does depend on a few different factors in my opinion.
If the restaurant requires the owner to be on the floor. A 1.5X - 2X multiple of SDE is reasonable.
If it runs without the owner, with management in place. A 2.5X - 3X multiple of SDE.
It's always a good idea to check where the total prime costs are with the previous owner, Food cost and labor cost should be at 60% or below.
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