THE SHORT ANSWER
Reconcile supported annual restaurant earnings, necessary owner replacement and usable included kitchen assets before selecting relevant sold comparisons. BizBuySell’s broad national 2021–2025 sold restaurant sample reports a 1.85x median owner-discretionary earnings multiple. That historical measure is not managed-platform EBITDA, a current appraisal or a rule to add every kitchen replacement cost to the price.
Use the broad historical sold restaurant table
The source includes multiple small local restaurant concepts, pizzerias and a smaller franchise-unit component.
(BizBuySell: restaurant sold valuation benchmarks)| 2021–2025 reported sold owner-earnings statistic | Multiple |
|---|---|
| Lower quartile | 1.34x |
| Median | 1.85x |
| Mean | 2.15x |
| Upper quartile | 2.53x |
Match actual concept, geography, scale, operating hours, channel mix, owner work, earnings definitions and included assets. Ten years trading, documented recipes and growth forecasts do not independently justify the upper quartile.
Reconcile actual channel results and annual expenses
Trace POS, cash, takeaway, delivery and other offered activity through fulfilled orders, discounts, credits, fees, settlements and collection. Reconcile annual statements with actual provider records; do not add payouts to orders already counted as sales.
Include actual food, waste, packaging, kitchen/service staff, premises, utilities, repairs, marketing and administrative costs. Separate completed service from gift/stored value, deposits and future events. A gross sales report or full reservation list does not establish cash after costs, financing and investment.
Define necessary owner work and usable kitchen conditions
SEC adjusted-measure guidance is an issuer-presentation reference.
(SEC: non-GAAP financial measure interpretations)Have the accountant define starting period/measure, actual deducted expense and future purpose. Draws, debt principal, equipment purchases and every renovation are not automatic adjustments. Include necessary buying, menu costing, scheduling, supervision and complaint replacement using the earnings-basis guide.
FDA describes the Food Code as a jurisdiction model.
(FDA: Food Code model and adoption overview)Review actual adopted requirements and unresolved authority matters with appropriate support. Inspect equipment and review title, liens, leases, condition, premises rights and needed investment. A prior inspection or asset schedule is separate from current buyer permissions and usable operating capacity.
Keep price, assets and delivery terms consistent
SBA sale guidance describes valuation approaches and agreement assets/liabilities.
(SBA: closing or selling a business)Determine what the earnings-based proposal already includes before adding kitchens, furnishings, inventory or property again. Book value, replacement cost and usable market value are different evidence. Define rent consistently if property is part of the proposal.
Resolve actual lease/provider terms and define stock, receivables, payables, stored value, deposits, accepted events, refunds and claims using the delivery guide. Use the seller preparation guide for records. Scenario tools calculate assumptions and do not certify an appraisal, clear equipment or establish actual buyer pricing.
Owner questions
Is the sourced 1.85x median restaurant EBITDA?
It is historical owner-discretionary earnings in a broad reported restaurant category.
Should all kitchen replacement costs be added to earnings-based value?
Define usable included assets and price terms first to avoid double counting.
Does a full reservation list prove annual earnings?
Review performed sales, actual costs, settlement and annual accounts.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- BizBuySell: restaurant sold valuation benchmarks
Primary national 2021–2025 reported sold restaurant owner-discretionary earnings table. Broad small locally owned restaurant concepts include pizzerias and a smaller franchise-unit component. Not pizza-only, managed-platform EBITDA, current appraisal or guaranteed company range. Asking/revenue and other financial/macro conclusions separate.
- SEC: non-GAAP financial measure interpretations
Staff interpretations last updated December 2022: recurring operating costs and distinguishing EBITDA from adjusted measures. SEC reporting context, not a universal private-sale rule or automatic acceptance of add-backs.
- FDA: Food Code model and adoption overview
Explains the model Food Code and jurisdiction adoption; the current overview identifies the 2026 edition. Check actual adopted rules and proposed operating permissions with the responsible authorities. This overview does not establish local requirements, technical handling procedures, liquor licensing or establishment inspection clearance.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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