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What should I pay for restaurants?

Short answer: Restaurants typically trade around roughly 1.5x–3x SDE on SDE — a general range, not an appraisal.

Lower multiples and higher failure risk than the trades. Lease terms, location, and condition of equipment heavily affect what you should pay.

Buyers typically value restaurants on SDE, at multiples generally roughly 1.5x–3x SDE. That's a starting point, not an appraisal — what you should actually pay depends on recurring revenue, owner-dependence, customer concentration, and the condition of equipment. Verify the seller's earnings against tax returns before trusting any number.

See our buyer's valuation guide and financing guide.

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Frequently asked questions

What should I pay for a restaurant?

Restaurants generally trade around roughly 1.5x–3x SDE on SDE. Adjust up for recurring contracts and a retained crew, down for owner-dependence. Confirm with a valuation and due diligence.

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