Restaurant & Cafe Valuation
Discover what your restaurant or cafe could be worth today
Typical Valuation for a Restaurants & Cafes Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 2.5-4.5× |
| EBITDA Margin | 12-25% |
Market Overview
Restaurants and cafes typically sell for 2.5-4.5× EBITDA in the UK market. The range reflects location quality, lease terms, concept strength, and operational systems. Established restaurants with strong locations and long leases command premium multiples (3.5-4.5×) due to site security and brand equity, while short-lease or struggling venues trade lower (2.5-3.0×). Key differentiators include location quality (high street, destination), lease length (10+ years remaining), established brand/reputation (3+ years trading), strong financial performance (20%+ EBITDA margin), manager in place (not owner-operated), diverse revenue (dine-in, takeaway, delivery), and modern fit-out. Restaurant valuations highly sensitive to lease terms and location - these drive traffic and sustainability.
How to Value a Restaurants & Cafes Business
The standard methodology for valuing a restaurants & cafes business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For restaurants & cafes businesses, that multiple typically ranges from 2.5-4.5×.
Use our free calculator to get an instant valuation estimate based on your actual revenue and profit figures.
Get Your Free Restaurants & Cafes Valuation
Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.