Most restaurant valuations in the Netherlands fall between 0.5x and 2.5x annual revenue. Brokers and investors adjust these multiples based on restaurant type, profit margins, and specific business factors. The actual multiple you'll see depends heavily on your establishment's financial health and market position.
What are revenue multiples?
A revenue multiple is a factor by which you multiply annual revenue to arrive at an indicative business value. It's a quick way to value restaurants, especially during sales or acquisitions.
💡 Example:
Restaurant with €500,000 annual revenue:
- At 1.0x multiple: value €500,000
- At 1.5x multiple: value €750,000
- At 0.8x multiple: value €400,000
The difference lies in profitability and quality of the business.
Common multiples by restaurant type
The multiple depends on your business type, location, and profit margin. Here's what you'll typically see across the Netherlands:
- Fine dining restaurants: 1.5x - 2.5x annual revenue
- Casual dining/bistros: 1.0x - 2.0x annual revenue
- Casual eateries/brown cafes: 0.8x - 1.5x annual revenue
- Fast food/takeaway: 0.5x - 1.2x annual revenue
- Hotel restaurants: 0.8x - 1.8x annual revenue
⚠️ Note:
These ranges are indicative. The actual value depends on many more factors than just revenue, such as profit margin, lease agreement, and condition of the property.
Factors that influence the multiple
Not every euro of revenue carries the same weight. From analyzing actual purchasing data across different restaurant types, these factors make establishments worth more or less:
- Profit margin: Higher margin = higher multiple
- Lease agreement: Long contract with low rent increases value
- Location: Prime locations get higher multiples
- Condition of equipment: Modern kitchen increases value
- Customer base: Regular customers are valuable
- Seasonality: Year-round revenue is worth more
💡 Example:
Two restaurants, both €400,000 revenue:
- Restaurant A: 8% net margin, rent €8,000/month → 0.8x multiple
- Restaurant B: 15% net margin, rent €4,000/month → 1.6x multiple
Restaurant B is worth €240,000 more due to better figures.
Revenue multiples can be misleading
Revenue multiples give you a first impression, but they can trick you. Watch out for these situations:
- High revenue, low profit: Multiple looks attractive, but the business is losing money
- One-time revenue spikes: Government support or temporary trends distort the picture
- Hidden costs: Deferred maintenance or rent increases not factored in
- Personal goodwill: Revenue depends on the owner, not transferable
⚠️ Note:
Always look at the profit figures. A restaurant with €500,000 revenue but €0 profit is worth less than one with €300,000 revenue and €45,000 profit.
EBITDA multiples as an alternative
Professional valuers often use EBITDA multiples instead of revenue multiples. EBITDA is profit before interest, taxes, and depreciation.
💡 Example:
Restaurant with €60,000 EBITDA:
- Common hospitality EBITDA multiple: 3x - 6x
- Value: €180,000 - €360,000
- Depending on risk profile and growth potential
This gives a more realistic picture than revenue alone.
Practical tips for valuation
If you're buying or selling a restaurant, keep these points in mind:
- Request at least 3 years of figures: One good year says little
- Check actual costs: Owner salary, private expenses, family staff
- Review the balance sheet: Debts, inventory, receivables
- Analyze trends: Rising or falling revenue/profit
- Rent and contracts: Transferable? Notice periods?
How do you calculate the value using revenue multiples?
Determine average annual revenue
Take the average of the last 3 years of revenue. Use only 'normal' years, so exclude pandemic years or other exceptions. This gives a more realistic picture of structural revenue.
Choose the right multiple for your type of business
Fine dining gets 1.5x-2.5x, casual dining 1.0x-2.0x, casual eateries 0.8x-1.5x. Adjust the multiple based on location, profit margin, and condition of the business. Higher margin means higher multiple.
Calculate and verify with profit figures
Multiply annual revenue by the chosen multiple. Check if this is realistic: divide the result by annual profit. If this gives more than 10-15 years payback time, the valuation is too high.
✨ Pro tip
Review comparable sales from the past 18 months in your specific region and restaurant category. Market conditions shift quickly, and what worked for valuations two years ago might not reflect today's buyer appetite.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Why do brokers use revenue multiples and not just profit?
Revenue is more stable than profit and easier to compare between businesses. Profit can be artificially low due to owner salary or depreciation. Revenue gives a picture of the market position and potential of a business.
What if my restaurant gets a lower multiple than comparable businesses?
This could be due to lower profit margin, poor lease terms, outdated equipment, or dependence on the owner. Focus on improving these points before selling to get a higher valuation.
Are revenue multiples in Amsterdam higher than in the provinces?
Yes, prime locations in major cities often get 20-40% higher multiples due to better foot traffic, higher price levels, and more buyer interest. But rents are also higher, so the net effect varies by business.
Should I include VAT in the revenue for the multiple?
No, always use revenue excluding VAT. The VAT isn't yours, so it doesn't count toward business value. This prevents your valuation from being 9-21% too high due to the VAT component.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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