The 10 indicators that really matter for valuing a restaurant

1. Turnover and evolution over 3 years

Annual turnover gives an initial indication of the restaurant's size. But it is above all the trend over 3 years that matters: growth, stability or decline.

Regularly increasing turnover values better than high but stagnant turnover. Watch out for seasonality (terraces, tourism). In Switzerland, average turnover varies greatly depending on the concept: from CHF 300,000 for a small establishment to several million for an urban brasserie.

2. EBITDA and net margin

EBITDA (earnings before interest, tax, depreciation and amortisation) measures real operational profitability. In Swiss catering, net margins range between 8% and 12% depending on positioning.

Important: restate the seller's personal expenses (salary, vehicle, private costs) to obtain an accurate picture. Use the Leez valuation tool to estimate the value based on normalised EBITDA.

3. Table turnover rate

This operational KPI measures how many times a table is occupied per day. A gastronomic restaurant does 1 to 1.5 services, a casual establishment can reach 2 to 3 rotations.

The higher the rotation, the greater the turnover potential. This ratio also reveals service efficiency and reservation management. A key indicator for projecting future growth.

4. Average spend per customer

Calculated simply: total turnover / number of covers. The average spend positions your restaurant: entry-level (CHF 20-30), mid-range (CHF 40-60), or high-end (CHF 80+).

Its evolution over time indicates whether the positioning holds, whether the clientele remains loyal, or whether erosion is setting in. An increasing spend may signal a successful move upmarket.

5. Staff costs / turnover ratio

In Swiss catering, this ratio should ideally be between 30% and 35% of turnover, including social charges. A higher ratio may signal overstaffing or poor organisation.

Check existing contracts: permanent contracts, seniority, above-market salaries. These elements directly impact post-takeover profitability and may require delicate adjustments.

6. Cost of goods (food cost)

The food cost represents the cost of raw materials relative to turnover. The norm is between 25% and 35% depending on the concept (pizza vs gastronomy).

An excessively high food cost reveals problems with purchasing management, waste or poorly calibrated portions. This ratio is a lever for rapid improvement after takeover, particularly through renegotiation with suppliers.

7. Occupancy rate and footfall

Analyse the number of covers per service, per day and per week. Identify quiet days (Monday, Tuesday) and peaks (Friday, Saturday).

These data reveal potential for improvement (marketing actions on weak days) or saturation risks (inability to grow without expansion). Essential for building realistic financial projections.

8. Lease duration and conditions

Critical element often underestimated. Check the remaining duration, renewal conditions, rent per m², and above all the transferability of the lease.

A short lease (less than 3 years) or non-transferable lease significantly impacts valuation downwards. Excessively high rent (>15% of turnover) weighs on profitability. Request a copy of the lease before making any offer.

9. Customer reviews and e-reputation

Ratings on Google, TripAdvisor, TheFork: volume, quality and recent trend. A rating above 4/5 with a significant volume of reviews is reassuring.

Analyse recurring comments (positive and negative). Recent deterioration may signal an operational problem. Consult our rapid evaluation grid to integrate this criterion into your overall analysis.

10. Equipment condition and necessary investments

Draw up a complete inventory of equipment: professional kitchen, furniture, till systems, refrigeration. Note the age and condition of each major piece of equipment.

Estimate the investments required in the short and medium term. An outdated kitchen may require CHF 50,000 to 100,000 in renovation. These costs must be deducted from the sale price or provisioned in your cash flow plan.

How to use these indicators in your analysis

Never rely on a single KPI. Cross-reference the data: high turnover with a low margin and a short lease is a warning signal. Compare with similar restaurants on Leez.

For complete due diligence, call on the Leez expert network (fiduciaries, specialist lawyers). They will help you validate the figures and identify hidden risks before committing.

Valuing a restaurant is based on solid financial indicators and concrete operational data. Turnover and EBITDA provide a view of profitability, whilst table turnover rate, average spend and food cost reveal management efficiency. The staff costs ratio and lease conditions directly influence long-term viability. Equipment condition and online reputation complete the picture.

These 10 indicators enable you to objectively assess an opportunity or prepare your own handover. They form the basis of rigorous analysis and facilitate discussions with potential buyers.

Do you wish to sell your restaurant or assess its value? Estimate your business free of charge and give it the visibility it deserves on Leez. Are you looking to take over an establishment? Consult the restaurants currently for sale and use these indicators to refine your analysis.