Estimate what a restaurant is worth from owner earnings, sales and assets, and see what moves the number.
By Rob Bruni, founder of OpsEdge Hospitality, twenty years running restaurants, bars, clubs and resorts. Updated November 2026.
Most independent restaurants are bought and sold on a multiple of what the business earns for its owner, checked against sales and the value of the equipment. Enter your numbers below to get a low, typical and high estimate. It is a planning range to start a conversation with a broker, an accountant or a buyer. It is not an appraisal and not an offer.
| Owner earnings (seller's discretionary earnings) | $170,000 |
| Owner earnings as a share of sales | 14.2% |
| Sales check (0.3 to 0.5 times annual sales) | $360,000 to $600,000 |
| Asset value (equipment plus inventory) | $135,000 |
The earnings estimate and the sales check overlap, which is a sign the numbers are consistent.
This calculator gives a rough planning range from general market rules of thumb. It is not a business appraisal, a broker opinion or financial advice. Real prices depend on the lease, the location, the trend, the books and the buyer. Talk to a business broker, an accountant and an attorney before you buy or sell.
| Method | How it works | When it is used |
|---|---|---|
| Multiple of owner earnings | Seller's discretionary earnings times a multiple, commonly 1.5 to 3 for single owner operated restaurants | The main method for independent restaurants that make money |
| Multiple of sales | Annual sales times roughly 0.3 to 0.5 | A quick cross check. It ignores whether the sales are profitable. |
| Asset value | Resale value of equipment, furniture and inventory, plus any value in the lease and licenses | The floor, and the main method when the restaurant is losing money |
For a sense of the market, BizBuySell reports that restaurants sold on its marketplace between 2021 and 2025 went for an average of about 2.15 times owner earnings and 0.39 times revenue (BizBuySell restaurant valuation benchmarks). That is where the typical figure in the calculator comes from. Multi unit groups with managers in place are valued differently, on a multiple of EBITDA, and usually higher.
Seller's discretionary earnings, or SDE, is the total financial benefit one working owner takes from the business in a year. It starts with net profit and adds back the costs a new owner would not have, or would choose differently.
The example loaded above
Every add back has to be provable from the books and the tax returns. A buyer and a lender will ask for three years of both. Cash that never went through the register cannot be added back, and claiming it creates a tax problem.
| Factor | Pushes the price up | Pushes the price down |
|---|---|---|
| Lease | Many years left, options to renew, rent under 8 percent of sales, transferable | Under three years left, no options, landlord approval uncertain |
| Owner dependence | Managers and systems run the place without the owner | The owner is the chef, the host and the bookkeeper |
| Trend | Sales and profit rising for two or three years | Declining sales, or one good year after several bad ones |
| Books | Clean monthly P&Ls that match the tax returns and the POS | Missing records, cash off the books, add backs nobody can prove |
| Concept | Simple to run, easy to staff, strong takeout or bar sales | Complex menu, dependent on one chef or one large client |
| Licenses | A liquor license that transfers, in an area where they are scarce | Permits that cannot transfer or are out of date |
| Condition | Maintained equipment with service records | Deferred maintenance the buyer will have to pay for |
Value is a multiple of earnings, so every dollar of profit you add is worth two or three at a sale. The same work also makes the restaurant a better business to keep.
The Restaurant P&L Statement and Prime Cost Dashboard shows prime cost, budget against actual, cash flow and three year trends in one workbook, the same view a buyer or lender will ask for.
See the P&L Dashboard Talk to us about an operations reviewMost independent restaurants are valued at a multiple of seller's discretionary earnings: net profit plus the owner's pay, depreciation, interest and one time expenses, times a multiple that is commonly between 1.5 and 3. The result is checked against a multiple of annual sales and the resale value of the assets.
Single owner operated restaurants commonly sell for 1.5 to 3 times owner earnings. BizBuySell reports an average of about 2.15 times earnings and 0.39 times revenue for restaurants sold on its marketplace between 2021 and 2025.
Seller's discretionary earnings is the total financial benefit a single working owner takes from the business in a year: net profit plus the owner's salary and benefits, depreciation and amortization, interest, and one time or personal expenses run through the business.
Usually the resale value of its equipment, furniture and inventory, plus whatever the lease, the location and any transferable licenses are worth to a buyer. That is often a fraction of what it cost to build.
Yes, a great deal. A long, transferable lease with renewal options at a reasonable rent supports a higher price. A short lease with no options can make a profitable restaurant very hard to sell.
It gives a starting range from general rules of thumb. An actual price depends on details a calculator cannot see, so use it to prepare for a conversation with a business broker or an appraiser, not to set a price.
