Whether you're buying a running outlet, selling yours, or bringing in a partner, the argument is always the same: what is this business worth? Professionals triangulate three methods, a multiple of revenue, a multiple of owner profit, and the resale value of the assets, and negotiate inside the range they draw. This estimator runs all three from your numbers.
Restaurants are commonly valued at 0.3-0.6× annual revenue, or 2-3× annual owner earnings (SDE), cross-checked against the resale value of equipment and fit-out. The final price usually lands between the asset floor and the earnings-multiple ceiling.
| Annual revenue | 24000000 ₹ |
| Annual owner earnings (SDE) | 3600000 ₹ |
| Revenue multiple | 0.45 x |
| Earnings multiple | 2.5 x |
| Equipment + fit-out resale + deposits | 4500000 ₹ |
Earnings, when the books are clean: a business is worth what it earns. The revenue multiple is the sanity check when profits are noisy or partly off the books, common in this trade, and the asset method sets the floor: nobody should sell a running outlet below what its dead equipment fetches plus deposits.
Transferable lease with years left at sane escalation, revenue not dependent on the departing owner-chef, clean GST-visible books, a trained team that stays, and diversified revenue (dine-in plus delivery plus events). A great outlet on a 11-month lease with the chef leaving is a bottom-of-range business.
For a single independent outlet, goodwill is mostly already inside the earnings multiple, that is what the multiple measures. Separately-paid goodwill makes sense mainly for franchisable brands, transferable trademarks, or exceptional location licenses (a hard-to-get liquor license can carry real standalone value in some states).
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