Restaurant for sale: what buyers should know

A typical restaurant sold for $220,000 on BizBuySell (median, 2021-2025), about 2.15x SDE on average. We do not list businesses; this page gives buyers the numbers and checks that matter.

Updated 2026-09-23 · 6 sources · By the TradeExit Guide team

We do not list businesses for sale. This page is for buyers: what restaurants actually sell for, what to check, how deals are financed, and where listings appear. Register below to hear when we publish new data for buyers.

The market at a glance

Median sale price
$220,000
BizBuySell sold
Average SDE multiple (sold)
2.15x
BizBuySell 2021-2025
Middle half of sales
1.34x-2.53x
SDE multiple
Documented acquirers
2
competing for deals

What restaurants sell for

Deal size / buyerPrice or multipleSource
Main Street restaurant sales, 2021-2025 (sold)1.34-2.53x SDE (average 2.15x); 0.39x revenue; median price $220,000

BizBuySell Valuation Benchmarks - Restaurants

Multi-unit franchise portfolios (context)Priced individually; the largest recent example, RBI buying Carrols (1,023 Burger Kings), was an all-cash deal at about $1.0B enterprise value

RBI - Burger King Company completes acquisition of Carrols Restaurant Group (May 16, 2024)

What to check before you make an offer

  • Key metric: Trailing-12-month sales and SDE, prime cost (food + labor) as a share of sales, rent as a share of sales, lease term remaining, liquor license type
  • Upside sign: A long, assignable lease at a rent the business can carry (buyers and SBA lenders check the term covers the loan)
  • Upside sign: Stable or growing sales documented in POS reports that match tax returns
  • Red flag: A lease with little term left, a demolition clause or a landlord unwilling to assign
  • Red flag: Cash sales that are not on the tax returns (buyers and lenders will not pay for them)
  • Red flag: The owner as head chef or key personality with no trained replacement

Transfer issues that can stop a closing

IssueWhat to knowSource
Liquor license transfer (California example)California requires an escrow with a neutral holder before filing a liquor license transfer application where there is a purchase price; the buyer deposits the full price, and the escrow pays the seller's bona fide creditors who file claims before ABC approves the transfer (B&P Code 24074).

California B&P Code 24074 - Transfer of licenses, escrow

Lease assignmentMost restaurant leases require landlord consent to assign, and landlords often ask for the buyer's financials and a personal guarantee. Start this early; it is the most common deal-killer.General practice point
Health permit and inspectionsFood service permits are generally issued to an operator, so the buyer typically applies for its own permit and may face a pre-opening inspection. Check your county health department's change-of-ownership rules.General practice point

How buyers finance these deals

Most Main Street acquisitions are financed with an SBA 7(a) loan plus buyer equity, often with a seller note. Under SBA SOP 50 10 8 the buyer generally needs a 10% equity injection, a seller note can count toward it only if it is on full standby, and earn-outs are not allowed in SBA-financed changes of ownership. Model the note with the seller financing calculator.

Who you are competing with

For larger restaurants, you will often bid against organized acquirers - we document 2 of them, from primary sources, on who is buying restaurant businesses. Individual buyers usually win smaller deals where a platform would pay an add-on multiple.

Buying restaurant businesses? Register your interest

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Frequently asked questions

How much does a restaurant cost to buy?

BizBuySell’s median sale price for restaurants sold 2021-2025 was $220,000. Price depends mostly on documented earnings (SDE).

Can I use an SBA loan?

Usually yes for Main Street deals. Under SBA SOP 50 10 8, expect a 10% equity injection; a seller note can count toward it only on full standby, and earn-outs are not permitted in SBA change-of-ownership loans.

Do you have listings?

No. We do not list businesses or broker deals. Listings appear on marketplaces such as BizBuySell and through brokers; see our broker reviews.

Sources

  1. BizBuySell Valuation Benchmarks - Restaurants (accessed 2026-09-23)
  2. BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)
  3. RBI - Burger King Company completes acquisition of Carrols Restaurant Group (May 16, 2024) (accessed 2026-09-23)
  4. California B&P Code 24074 - Transfer of licenses, escrow (accessed 2026-09-23)
  5. SBA SOP 50 10 8 key changes (Whiteford client alert) (accessed 2026-09-23)
  6. LRM Lender Consultants - SBA change of ownership under SOP 50 10 8.1 (accessed 2026-09-23)