Is my café worth a multiple of weekly takings?

It is a rule of thumb the market still uses, but buyers and their financiers price on profit. A venue with strong takings and no margin left after rent and wages will not attract the price a takings multiple suggests.

My lease expires in a year. Should I renew before selling?

Almost always yes. Negotiating a renewal or an option before going to market usually adds more to the sale price than it costs in rent, and it removes the single biggest reason café sales collapse.

Do I have to tell my staff we are selling?

Not at the outset. Café sales are run confidentially, and staff are generally told once a buyer is under contract and the conditions are close to satisfied.

Should I renovate before I sell?

A deep clean, working equipment and tidy presentation pay for themselves. A full refit rarely does. Buyers price on profit and lease first, then adjust for what they expect to spend.

Selling a Café or Restaurant in Australia

Cafés and restaurants typically sell for 0.8× to 1.5× EBITDA, most often between $150,000 and $500,000, and take around 90 to 150 days to find a buyer. More than in any other sector, the lease decides the outcome.

If you run a café, restaurant, bar or similar hospitality venue, this page covers what yours is likely worth, what buyers check before making an offer, and what tends to move the number up or down.

Typical multiple: 0.8× - 1.5×
Typical sale price: $150k–$500k
Time to sell: 90–150 days
Buyer demand: High

What café and restaurant businesses sell for

The headline range is 0.8× - 1.5× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.

Annual EBITDA	Typical multiple
Under $100k	0.8× – 1.8×
$100k – $250k	1.2× – 2.4×
$250k – $500k	1.6× – 3×
$500k – $1M	2.2× – 4×
$1M – $2.5M	3× – 5×
$2.5M – $5M	3.8× – 6.5×
$5M – $10M	5× – 8×
$10M+	6× – 10×

Two cafés with identical takings can sell for very different numbers. The one with six years of secure tenure and rent at 8% of revenue will find a buyer quickly. The one on a month-to-month arrangement at 15% may not sell at all.

How long it takes to sell

Ninety to one hundred and fifty days is slower than trades but faster than manufacturing. The delay is rarely the buyer. It is usually the landlord, because the lease has to be assigned or a new one negotiated before settlement, and that sits outside the control of both parties. Starting the landlord conversation early is the single best thing you can do for your timeline.

The five things buyers pay for

Location & foot traffic

Passing trade is the asset. Buyers will sit outside and count people, look at the surrounding tenancies, and note what is opening or closing nearby. A venue that depends on destination customers rather than foot traffic is a harder sell, because the buyer is betting they can hold on to a following that may belong to you personally.

Rent as % of revenue

This is the number buyers calculate first. Under 10% of revenue is healthy and supports your price. Between 10% and 15% narrows the buyer pool. Above 15% and most buyers walk, because there is nothing left for a wage or a profit once the landlord is paid.

Weekly trading turnover

Buyers want consistent weekly takings backed by POS reports, not one good month. They will look at the split between weekday and weekend, morning and evening, dine-in and takeaway. Revenue concentrated into two busy days is treated as more fragile than the same total spread evenly.

Chef / staff dependency

A venue that only works because of one chef is a risk rather than a business. If the menu, the prep and the quality all sit with a single person who may not stay, buyers discount heavily. Documented recipes, a trained second and a stable team are worth real money here.

Lease terms & length

The lease is usually worth more than the equipment. Buyers want three to five years of secure tenure at minimum, either remaining term or options to renew. A lease expiring within twelve months with no option is the most common reason a profitable café fails to sell.

Lease assignment, registration and licences

The lease is the transaction. Most café sales are structured as an assignment of the existing lease, and that assignment needs the landlord to consent. A landlord can ask for financial information about the buyer, personal guarantees or a bank guarantee, and in practice holds a veto over your sale.

Food businesses must be registered with the local council, and that registration does not automatically pass to a new owner. The buyer generally applies in their own name, which is also the point at which any unresolved issues from your last inspection surface.

If you hold a liquor licence it transfers through the state regulator rather than with the business, and the buyer has to be approved before they can trade. That process takes time and should be started well ahead of settlement. Requirements differ by state, administered by bodies such as Liquor Control Victoria and Liquor & Gaming NSW.

What buyers will ask for

Lease term and options. How many years are secure, and whether the landlord will consent to an assignment. Buyers often ask this before they ask about profit.
Rent as a percentage of revenue. Calculated from your own figures on the spot. Under 10% supports your price; above 15% usually ends the conversation.
POS and accounting records that reconcile. Takings described verbally but not visible in the numbers are worth nothing to a buyer. Cash-heavy operations sell at a discount for exactly this reason.
Staff and chef retention. Who is staying, what they are paid, and whether the kitchen can run without you or your head chef.
Equipment condition and food safety history. Age and service history of refrigeration and cooking equipment, plus your council inspection record.

Common questions

Is my café worth a multiple of weekly takings?: It is a rule of thumb the market still uses, but buyers and their financiers price on profit. A venue with strong takings and no margin left after rent and wages will not attract the price a takings multiple suggests.
My lease expires in a year. Should I renew before selling?: Almost always yes. Negotiating a renewal or an option before going to market usually adds more to the sale price than it costs in rent, and it removes the single biggest reason café sales collapse.
Do I have to tell my staff we are selling?: Not at the outset. Café sales are run confidentially, and staff are generally told once a buyer is under contract and the conditions are close to satisfied.
Should I renovate before I sell?: A deep clean, working equipment and tidy presentation pay for themselves. A full refit rarely does. Buyers price on profit and lease first, then adjust for what they expect to spend.

Find out what your business is worthFree valuation tool. Five questions, indicative range.Talk to a broker confidentiallyA 30-minute strategy call. No obligation.

Other industry guides

See all industries and multiples

Before you sell

Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.

Last updated September 2026