Restaurant Valuation Calculator

🏪 Restaurant Information

Annual Revenue ($)

Operating Expenses ($)

EBITDA (Automatically calculated)

EBITDA = Revenue - Operating Expenses

Years in Operation 6-10

<1 5 10 10+

💪 Established restaurant (6-10 years)

📈 Valuation Factors

Restaurant Type

Industry Multiple 3.0x

1x 2x 3x 4x 5x

Typical for fast-casual: 2.5-3.5x

Annual Growth Rate +5%

-10% 0% 10% 20%

📊 Stable growth

Industry average: 3-7% annual growth

How to Use Menubly's Restaurant Valuation Calculator?

This calculator determines your restaurant’s market value using the EBITDA multiple method, the most common valuation approach in the food service industry.

Step-by-Step Instructions

Follow these simple steps to get accurate recipe costing:

1. Enter annual revenue

Include all revenue from the past 12 months (dine-in, takeout, delivery, catering). Higher revenue demonstrates market presence and customer demand, forming the foundation of your EBITDA calculation.

2. Input operating expenses

Enter total operational costs including food, labor, rent, utilities, and marketing. Lower expense ratios (70-85% of revenue) result in higher EBITDA and valuations. The calculator automatically computes your EBITDA.

3. Set years in operation

New restaurants (under 1 year) receive a 10% penalty, established restaurants (4-6 years) see no adjustment, and veteran restaurants (10+ years) get a 10% premium.

4. Select restaurant type

Choose from Casual Dining, Fast Casual, Quick Service, Fine Dining, Cafe/Coffee Shop, or Bar & Grill. Each type has different industry multiples based on opera

Restaurant Valuation Multiples by Type

Restaurant Type	Revenue Range	Typical Multiple
Quick Service	Under $500K	2.5x – 3.0x
	$500K – $2M+	3.0x – 4.0x
Fast Casual	Under $500K	2.0x – 2.5x
	$500K – $2M+	2.5x – 3.5x
Casual Dining	Under $500K	1.5x – 2.0x
	$500K – $2M+	2.0x – 3.0x
Fine Dining	Under $500K	1.0x – 1.5x
	$500K – $2M+	1.5x – 2.5x

5. Adjust industry multiple

Fine-tune the multiplier (1x to 5x) based on your market conditions and operational efficiency. Quick-service typically uses 3.0-4.0x, while fine dining uses 1.5-2.5x.

Project growth rate

Enter expected annual growth (-10% to +20%). The calculator uses 5% as baseline – each point above or below adds/subtracts 1% from valuation.

Understanding Your Results

Estimated Restaurant Value – Your calculated market value after applying all adjustments and multiples.
Valuation Range – ±10% range accounting for market conditions and negotiation factors where most sales occur.
Growth Plan Analysis – Shows how digital menu implementation can increase revenue by 15-20% annually and your projected new restaurant value.

Key Valuation Formulas

Base Value Calculation

Base Value = EBITDA × Industry Multiple

EBITDA = Annual Revenue - Operating Expenses

Years Adjustment

Under 1 year: -10%
1-3 years: -5%
4-6 years: 0%
7-10 years: +5%
10+ years: +10%

Growth Rate Adjustment

Growth Adjustment = (Growth Rate - 5% Baseline) × 1% 

Final Value = Base Value × (1 + Years Adj.) × (1 + Growth Adj.)

How To Maximize Your Restaurant's Value

The fastest way to increase your restaurant’s valuation is through revenue enhancement that directly improves EBITDA. Menubly’s digital menus typically increase average order values by 15-20% through enhanced visual presentation and smart upselling suggestions, translating directly to higher restaurant valuations.

Digital menus also provide operational efficiency gains – reducing order errors by 3-5%, eliminating printing costs, and enabling real-time menu management. These improvements, combined with expanded delivery capabilities, create a compounding effect on profitability.

Tech-forward restaurants command premium valuation multiples because buyers recognize scalability advantages. Digital menu systems like Menubly often pay for themselves within 60 days through increased order values, offering the clearest path to measurable valuation improvement.

Create Free Online Menu for Restaurants

Turn your paper menu into an interactive online menu that your customers can browse and order from anywhere.

Try for Free Learn More

Free Restaurant Valuation Calculator FAQs

How to calculate your restaurant's value?

Restaurant valuation uses the EBITDA multiple method:

Restaurant Value = EBITDA × Industry Multiple × Adjustments.

Start by calculating your EBITDA (revenue minus operating expenses), then multiply by your restaurant type's industry multiple (typically 1.5x to 4x). Finally, apply adjustments for years in operation (-10% to +10%) and growth projections. Our calculator above automates this entire process for accurate results.

How do you calculate EBITDA for a restaurant?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is calculated as:

EBITDA = Annual Revenue - Operating Expenses.

Include all revenue streams (dine-in, takeout, delivery, catering) and subtract operational costs like food, labor, rent, utilities, and marketing. Healthy restaurants typically achieve EBITDA margins of 10-20% depending on restaurant type and operational efficiency.

What is the formula for valuation of a restaurant?

The standard restaurant valuation formula is:

Final Value = (EBITDA × Industry Multiple) × (1 + Years Adjustment) × (1 + Growth Adjustment).

Industry multiples range from 1.5x-2.5x for fine dining to 3.0x-4.0x for quick service. Years adjustments vary from -10% for new restaurants to +10% for established ones. Growth adjustments add or subtract 1% for each percentage point above or below 5% baseline growth.

What are the multiples for restaurant valuation?

Restaurant valuation multiples vary by type and revenue:

Quick Service (3.0x-4.0x)
Fast Casual (2.5x-3.5x)
Casual Dining (2.0x-3.0x)
Fine Dining (1.5x-2.5x)

Higher revenue restaurants typically command premium multiples within each category. Factors like location, brand strength, lease terms, and operational efficiency can adjust these baseline multiples up or down.

How to estimate restaurant revenue?

Restaurant revenue estimation considers multiple factors including location traffic, menu pricing, seating capacity, and service style. Key metrics include average transaction value, daily customer count, and seasonal variations. For detailed revenue projections and growth planning, use our comprehensive Restaurant Revenue Calculator which factors in all revenue streams and growth scenarios.

How to calculate restaurant ROI?

Restaurant ROI measures return on investment using:

ROI = (Net Profit ÷ Total Investment) × 100.

This includes initial investment, ongoing operational costs, and profit margins. Successful restaurants typically achieve 15-25% ROI annually. For detailed profit margin analysis and ROI calculations, try our Restaurant Profit Margin Calculator which provides comprehensive financial performance insights.

What is Menubly?

Menubly is a tool that allows restaurants and food businesses to easily create a Free mini website. This mini website features an interactive digital menu and a hub for all your essential links, including Google Maps direction, social media profiles, and online ordering platforms, and more.

By placing this mini website link in your Instagram bio or other social media profiles, your customers can easily access and discover everything about your restaurant with just one click.

Who is Menubly for?

Menubly is ideal for any type of food business looking to boost their online presence and get more customers. Whether you run a restaurant, cafe, bar, bakery, food truck, brewery, or ghost kitchen, Menubly provides the tool to help you showcase your offerings online and get more customers.