How to value restaurants?

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January 21, 2026

by a searcher from University of Notre Dame in Houston, TX, USA

Does anyone have any experience in valuing restaurants?
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Reply by a searcher
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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Reply by a professional-advisory
from University of Notre Dame in Houston, TX, USA
Feel free to use our restaurant valuation calculator here: https://www.smgcapitalgp.com/restaurant-valuation-calculator/
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