Restaurant for sale with prime costs and SDE
Restaurants change hands more often than almost any other small business, and the range is wide: a turnkey neighborhood cafe, a full service dining room with a liquor license, a ghost kitchen, a multi unit franchise group. The price can reflect a profitable operation or simply the value of the build out. CompanyBrokers listings show revenue, SDE, asking price, multiple and reason for sale in a structured format, so you can tell a going concern from an asset sale before you sign anything, and the full books open in a data room after NDA and proof of funds.
- NDA signed
- Proof of funds
- Data room
Restaurants for sale near me
Set a deal alert for restaurants by state, price range and minimum SDE, and new listings arrive by email when a broker or owner publishes them. Every inquiry goes through an NDA e-sign and a proof of funds step, so staff and regulars do not learn about a sale before it closes. You can also browse every business for sale near me or start with how to buy a business.
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What buyers look for in a restaurant business
- Prime cost (food, beverage and labor) as a share of sales, ideally with monthly history
- Occupancy cost relative to sales and a lease long enough to recover the investment
- A general manager and chef who stay, so the business does not depend on the seller's hours
- Delivery and catering revenue reported separately, with platform fees shown
- Kitchen equipment, hood system and walk in coolers in working order
- A liquor license that transfers, where alcohol makes up a meaningful share of margin
How much is a restaurant worth
Profitable independent restaurants are commonly valued on a multiple of SDE, and as general market guidance that multiple often falls around 1.5 to 3 times SDE, lower than many other sectors because of high failure rates and owner dependence. Multi unit groups with a management layer are often valued on EBITDA at higher multiples. When a restaurant earns little or nothing, buyers price it as an asset sale: the equipment, build out, lease and license, often called a turnkey or second generation space. A long lease, steady sales and a transferable liquor license tend to move value up. Try the business valuation calculator for a quick range.
Restaurant due diligence checklist
- Point of sale reports by day and month, matched to sales tax filings and bank deposits
- Food and beverage invoices from main suppliers for at least twelve months
- Payroll records, tip reporting practices and any wage and hour claims
- Health department inspection history and any open violations
- Lease assignment terms, remaining term, percentage rent and landlord consent
- Liquor license type and the state process for transfer, including timing and escrow rules
- Equipment list, hood and fire suppression certificates and grease trap service records
- Delivery platform statements and the share of sales they represent
Financing a restaurant purchase
Lenders treat restaurants carefully, but an SBA 7(a) loan remains a common route for a profitable operation with clean books; read how an SBA loan to buy a business works before you apply. Seller financing is frequent in restaurant deals and signals that the owner believes the numbers. For asset sales with little cash flow, buyers often pay cash or use equipment financing. An earn-out is rare for small restaurants but can work when a new location is still ramping up.
Selling your restaurant
To sell my business at a fair price, show clean point of sale data and a lease with room left on it. Our selling a business checklist explains how to prepare. Keep the sale confidential by listing with NDA protection, or get matched with business brokers who sell restaurants in your state, including business brokers near me. Plans are on the pricing page.
How do I know if a restaurant for sale is actually profitable
Ask for point of sale reports, tax returns and bank statements for the same period and compare them. Then rebuild SDE yourself, adding back only owner salary, personal expenses and one time costs.
Can a liquor license be transferred when I buy a restaurant
Often yes, but rules differ by state and city. Some licenses transfer with the business, some require a new application, and the process can take weeks or months, so build that time into the closing.
What is a turnkey restaurant for sale
It is a space with a working kitchen, equipment and dining room that a new operator can open quickly, often sold for the value of its assets and lease rather than its profit.