Sell My Restaurant in the UK: How to Prepare and Get a Fair Price

If you are wondering how to sell my restaurant and get a fair price, the honest answer is that most of the price is won or lost before you list it. Buyers pay for profit they can verify, a lease they can rely on, staff who will stay and a licence that transfers cleanly. Give them all four in a tidy pack and you negotiate from strength. Leave gaps and each one becomes a discount.

How to sell my restaurant: get the numbers buyer-ready

Serious buyers will test your trading figures against your accounts, so do it first. Gather the last three years of accounts, recent management accounts, VAT returns and EPOS reports. They should tell the same story.

Then prepare the figures every restaurant buyer asks for:

• Covers per week, split by lunch and dinner, ideally from your booking system or EPOS
• Average spend per head, with food and drink shown separately
• Food and drink cost percentages, backed by supplier invoices
• Wages as a share of turnover, plus the hours you work yourself

If covers multiplied by average spend doesn't roughly match the turnover in your accounts, a buyer will spot it. Takings that never reached the books won't count towards your price, so don't plan your sale around them.

What is my restaurant worth?

Most independent leasehold restaurants are valued on adjusted profit: net profit plus add-backs such as your salary above a market rate, one-off costs and personal expenses run through the business. A buyer then applies a multiple, and that multiple varies widely with lease length, rent, location, sales trend and how much the business depends on you.

Sometimes the site is the real asset. A good location on a long lease can sell for more than the trading figures alone suggest. Freehold restaurants are usually valued with the property and the business considered separately.

To set a realistic asking price, look at similar restaurants for sale in your area, remembering that asking prices are not sold prices. Ask your accountant for a clear add-backs schedule, and keep evidence for every line.

Will my staff transfer when I sell?

In most UK restaurant sales, employees transfer to the buyer automatically under TUPE, keeping their terms, length of service and accrued holiday. Both you and the buyer have duties to inform staff, and sometimes consult them, before the transfer, so get a solicitor's advice on timing.

Before going to market, check that every employee has a written contract, right-to-work checks are on file, and holiday and pension records are current. Prepare an anonymised staff list with roles, hours, pay and start dates. If your head chef is central to the business, be honest about it. A buyer who learns late that the chef is leaving will either walk away or cut the offer.

Premises licence and lease: what a buyer needs

If you sell alcohol, the buyer will want to know the premises licence can transfer to them and what conditions come with it. In England and Wales, the transfer is made by application to the local licensing authority, and the buyer will usually name their own designated premises supervisor. Scotland and Northern Ireland have different systems. Have the licence, the plan and all conditions (hours, outdoor areas, CCTV) ready to share.

On the lease, check now:

• How many years remain and when the next rent review falls
• Whether landlord consent is needed to assign, and on what terms, such as an authorised guarantee agreement
• Whether the lease is inside or outside the Landlord and Tenant Act 1954 security of tenure provisions
• Any dilapidations obligations

Short leases put off buyers and lenders. If you have time, talking to your landlord about an extension before you sell can add more value than almost anything else.

Kitchen, ventilation and fire safety: paperwork buyers check

Buyers will inspect the kitchen and ask for documents. Gather these before viewings:

• Gas safety certificate from a Gas Safe registered engineer
• Kitchen extraction cleaning records
• Fire risk assessment, plus alarm, emergency lighting and extinguisher service records
• Electrical installation condition report
• Food hygiene rating and latest inspection report
• An equipment inventory showing what is owned, leased or on finance

Fix small faults now. A broken fridge or overdue extraction clean costs little to sort but gives a buyer an easy reason to chip the price. Check whether leased equipment must be paid off or can transfer.

How to find buyers without telling everyone

If staff, suppliers or regulars hear you are selling too early, trade can dip. Advertise without your name or exact address, ask enquirers to sign a non-disclosure agreement, and share detailed figures only after proof of funds.

You can list your business for sale free on BizMarketplace and handle enquiries yourself, or use a broker if you'd rather not deal with buyers directly. Either way, appoint a solicitor experienced in business sales early, and ask your accountant about the tax on the sale, including whether Business Asset Disposal Relief could apply.