Restaurant & Hospitality
Sell your restaurant
Restaurants sell on proven cash flow and a workable lease, and confidentiality matters more here than almost anywhere. A staff that learns the place is for sale before you are ready is a real risk to the value.
Request a Confidential ValuationCall (877) 367-0977- Typical buyers
- Independent Operators, First-Time Owners, Local Investors
- Common valuation basis
- Adjusted EBITDA for larger companies, SDE for owner-operated businesses
- What buyers study first
- Earnings, lease terms and owner dependence
- Typical time to close
- Six to twelve months once marketed
Industry Overview
The market for restaurants
Restaurants sell best when the numbers are clean and the business runs without the owner in the kitchen every night. Buyers include restaurant groups adding locations, operators relocating to a new market and individuals ready to own, and each of them pays for a proven concept, a loyal customer base and a location they can count on.
Buyers look first at documented earnings, food and labor costs, sales trends and the lease. A long lease with reasonable terms can matter as much as the concept itself. They also study the kitchen and front-of-house leadership, equipment condition, licenses and how much of the regular crowd comes for the owner personally.
For owners of restaurants with at least $1 million in revenue, preparation makes the difference. Businesses that can show clean financials, a capable team and customers who stay tend to draw competing offers. We help you get there, then run a confidential process that reaches strategic, investor and individual buyers.
The Buyer Pool
Who is buying restaurants
Reaching several of these buyer groups at once is how a confidential process creates competition, and competition drives price and terms.
Independent Operators
Experienced restaurateurs adding a second or third location in a market they already understand.
First-Time Owners
Buyers entering ownership at an accessible price point, often with an operating location and staff already in place.
Local Investors
Buyers who want a community business with an established name and are willing to hire an operator to run it.
Concept Buyers
Groups acquiring the location, the equipment, and the lease with a view to converting the concept.
What Moves Your Number
What drives value
Two businesses with identical revenue can be worth very different amounts. These are the factors buyers in this sector actually underwrite.
Request a Confidential Valuation- Provable earnings supported by clean point of sale records
- Lease terms, remaining years, and renewal options
- A general manager or kitchen lead who runs the place day to day
- Repeat local traffic rather than seasonal or tourist dependence
- Equipment condition and the age of the hood and refrigeration
- Reputation, reviews, and community standing
Due Diligence
How buyers evaluate restaurants
Expect a serious buyer and their lender to look closely at each of these areas. Preparing them before you go to market shortens the process and protects your price.
Sales & Customers
Sales history by month and daypart, catering and delivery mix, and reviews.
Lease & Location
Remaining term, options, rent, assignment terms and landlord relationship.
Team
Kitchen and front-of-house leadership, tenure and the plan to retain key people.
Costs & Margins
Food, beverage and labor costs, vendor terms and add-backs with support.
Licenses
Liquor, health and business licenses and what must transfer to a new owner.
Equipment & Facility
Kitchen equipment with age and condition, and any deferred maintenance.
Before You Go To Market
What quietly lowers your value
None of these are fatal, and every one is easier to address before a buyer finds it than after. That is the case for getting a valuation early rather than late.
- Cash sales that cannot be proven to a buyer or a lender
- A lease with two years remaining and no option
- Owner who is also the chef or the face of the concept
- Deferred equipment repairs that come due immediately after closing
Preparing To Sell
A practical timeline
Most owners who sell well start preparing a year or two before they go to market.
Build the foundation
24 to 12 months out
Get a professional opinion of value. Transfer client relationships to your team. Document processes and service standards. Strengthen recurring revenue.
Prove it
12 to 6 months out
Clean up monthly financials and add-backs. Review licenses, contracts and leases. Plan retention for key people. Reduce your role in daily operations.
Run a confidential process
Going to market
Prepare a detailed offering memorandum. Reach strategic, investor and individual buyers. Share client information in stages. Negotiate price, structure and transition.
Common Questions
Common questions from owners
What is my restaurant worth?
Provable earnings, lease terms, and equipment condition drive the number. The word that matters most is provable. Earnings a buyer or a lender cannot verify from your records generally will not be paid for, regardless of what you know to be true.
How do I keep my staff from finding out?
This is the most common concern we hear in food service, and it is handled the same way as any confidential sale. Buyers see a blind profile, your identity goes out only under NDA, and visits are scheduled outside of service.
Does the lease affect what I can sell for?
Significantly. A buyer is acquiring the right to operate in that location, so remaining term and renewal options can matter as much as last year's earnings. Renegotiating the lease before going to market is sometimes the single highest return move available.
What if some of my sales are cash?
Then they are difficult to include in the value, because a buyer's lender will underwrite what the records show. This is worth understanding well before you go to market, because it is the most common reason restaurant sellers are disappointed by their number.
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Client Reviews
Owners who have been where you are
Trevor was great to work with and did an excellent job guiding us through the sale of our business. As first-time sellers, the process was definitely stressful at times, but Trevor’s attentiveness and steady support made a huge difference.
He is knowledgeable, responsive, and genuinely invested in helping his clients succeed. From start to finish, he communicated clearly and made every step feel smooth and well-organized. Highly recommend Meritus Group to anyone!
My business was a niche business and Trevor did a great job in learning all he could about it to market it well. As a first time seller, Trevor helped me through the process from beginning all the way through the sale.
Start Here
Know your number first
A confidential Opinion of Value tells you what your business is worth to a real buyer today and what would move that number. No cost, no obligation, and no one learns you asked.
Request a Confidential Valuation