Most restaurants in Canada change hands at a multiple of their normalized earnings, typically EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted for owner add-backs. The multiple itself depends on your size, location, growth trajectory, and how much the business depends on you, the owner.
Restaurants are among the harder small businesses to value, and buyers look closely at consistent profitability, the lease, and whether the concept depends on the owner. Strong documented cash flow, a transferable long-term lease, and systems that run without the owner lift value; thin margins and owner-dependence pull it down.
Pushes the number up
- Consistent, documented profitability
- A strong, transferable long-term lease
- Managers and systems that run service without the owner
- An established brand, reviews, and repeat traffic
Pulls the number down
- Owner works in the business daily
- Thin or inconsistent margins
- Short or uncertain lease terms
- Heavy dependence on one location or chef
You put in your numbers. We show you two things.
Market data: Sector-specific transaction multiples based on aggregated business transaction reports. Updated quarterly.
Peer benchmarks: Estimates from verified owners in your sector and size range. See what similar businesses are worth, and compare your own expectations against market data and transaction multiples.
Takes about three minutes.
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Get My InsightsRestaurants are typically valued on normalized earnings (with owner add-backs), the lease, and the equipment. Profitability, owner dependence, and lease terms move the number a lot. Clariva shows the benchmark range for your size and province.
Restaurants generally trade at lower multiples than contract-based service businesses, and the range is wide. Documented profit, a strong lease, and manager-run operations push toward the higher end. Enter your numbers to see your range.
Significantly. A long, transferable lease at a reasonable rate is one of the most valuable assets a restaurant can offer a buyer; a short or uncertain lease can sharply reduce an offer.
No. The estimate is for benchmarking and context only, and does not replace a formal business valuation. For a transaction, work with an M&A advisor or a Chartered Business Valuator (CBV).
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Not financial advice. Clariva is a data aggregation and compilation tool. All ranges shown on this platform are derived from publicly available transaction data and anonymized user submissions, and are provided for informational and benchmarking purposes only. Nothing on this platform constitutes a formal business valuation, financial advice, or a recommendation to buy or sell. Consult a qualified M&A advisor, Chartered Business Valuator (CBV), or legal counsel before making any financial or transactional decisions. Individual data is never shared or sold. Anonymized, aggregated insights may be used for industry research. You can request deletion of your data at any time by emailing tanner@clariva.ca.