1. SDE multiple (owner-operator deals)
SDE = Seller's Discretionary Earnings. Take net income, add back the owner's salary, owner perks, interest, taxes, depreciation, and any one-time expenses. This is the "true cash" the business throws off to a single owner-operator.
Typical range: 1.5×–3× SDE for independent restaurants. A profitable, well-systematized concept with brand strength can hit 3×–4×. A struggling spot or one over-reliant on the owner trades at 1×–2×.
Best for: Buyers who'll run it themselves. Most single-unit deals.
2. EBITDA multiple (investor / multi-unit deals)
EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization. Unlike SDE, it assumes a market-rate manager (not the owner) is running the place. This is what investors and multi-unit buyers care about.
Typical range: 3×–5× EBITDA for independent multi-unit operators. Strong regional brands with proven unit economics can reach 5×–7×. National-scale chains and franchisors trade at 8×–15×+.
Best for: Equity raises, investor partnerships, multi-unit acquisitions, franchise sales.
3. Asset-based (distressed or new concepts)
Add up the fair market value of FF&E (furniture, fixtures, equipment), inventory, leasehold improvements, and any owned real estate. Subtract liabilities. This sets the floor.
Typical range: Whatever the assets are actually worth at auction or replacement cost. Often a fraction of what you paid.
Best for: Restaurants losing money, new concepts without a track record, or as a sanity-check floor on the other methods.
What actually moves your number up
- • Clean books — at least 24 months reconciled monthly. Adds 0.5–1× to the multiple alone.
- • Owner-independence — the business runs without you 4 days a week. Buyers pay a premium.
- • Long lease — 7+ years remaining. A 2-year lease can chop 30% off any number.
- • Documented systems — recipes, training, ordering, scheduling all written down.
- • Diversified revenue — catering, retail, e-commerce, events. Multi-channel = multiple expansion.
- • Growing same-store sales — a flat or declining trend caps the multiple regardless of profit.
Wingman doesn't provide valuation, legal, tax, or financial advice. Always confirm a real number with a CPA or business broker who knows hospitality.