Your complete guide to restaurant business transactions. Valuations, liquor licenses, health permits, and expert resources.
Illinois has a vibrant restaurant industry with over 25,000 establishments ranging from fine dining to fast casual, ethnic cuisine to classic American fare. Chicago alone is home to some of the nation's most acclaimed restaurants, while communities across the state support diverse dining options.
Restaurant businesses include full-service restaurants, casual dining, fast casual, quick service, and specialty food establishments. These businesses require careful attention to food service licenses, health permits, and often liquor license considerations.
| Valuation Method | Multiple Range | Notes |
|---|---|---|
| SDE Multiple | 1.5x - 2.5x | Seller's Discretionary Earnings |
| EBITDA Multiple | 2.5x - 4.0x | For larger operations |
| Revenue Multiple | 0.3x - 0.5x | Less common, used for comparison |
Selling a restaurant requires careful preparation and understanding of industry-specific factors. Here's what you need to know:
Acquiring a restaurant offers exciting opportunities but requires thorough due diligence. Here's what buyers should know:
Fine dining and casual sit-down restaurants with table service.
Counter service with higher quality food and atmosphere.
Specialty restaurants featuring international cuisines.
Fast food and quick service restaurants.
Coffee shops and light fare establishments.
Bakeries, dessert shops, and specialty food.
Restaurants are typically valued at 1.5-2.5x SDE (Seller's Discretionary Earnings). Key factors include location, lease terms, liquor license, equipment condition, and brand reputation. Restaurants with liquor licenses and favorable leases command higher multiples.
Illinois liquor licenses are issued by local municipalities and the Illinois Liquor Control Commission. Transfer requires application to both entities, background checks, and approval. The process typically takes 60-90 days. Some municipalities have license quotas that can affect availability.
SBA 7(a) loans are popular for restaurant acquisitions, typically requiring 10-20% down payment. Equipment financing can cover kitchen equipment. Seller financing is common in restaurant sales. Some buyers use a combination of SBA loans and seller notes.
Restaurant sales typically take 4-8 months from listing to closing. Timeline depends on pricing, location, lease terms, and liquor license transfer requirements. Well-prepared restaurants with clean financials and transferable leases sell faster.
Get expert guidance for your Illinois restaurant transaction.