Restaurant Value Calculator: Value Your Business

Marketing 11 minute read 4th October 2023

A restaurant value calculator is a standard tool for business owners. A value calculator factors everything from discretionary earnings to annual revenues and intangible assets. Most restaurant owners have to invest in a business valuation calculator at some point. You don’t even need to be selling your business. Even potential investors look at these details. Calculators are necessary if you want to get investments or a rough estimate to see how much you could make.

This valuation method is easily one of the top ways to calculate your business value in the restaurant industry. With a calculator, just input your income statement and cash flow details - all your balancing will come in handy. And after, you’ll be much better guided through your financial decisions. Knowing all about restaurant valuation calculators is one of the most important things you can learn in the restaurant industry.

This guide will give you a rundown of everything you need to know. You’ll learn everything from how to calculate restaurant value to the significant benefits of even doing so. There’s lots to cover, but your restaurant will thank you later.

restaurant value calculator 1

What Is a Calculator for Restaurant Value?

A calculator for restaurant value is a tool that helps restaurant owners calculate how much their business is worth. A business valuation calculator is an online tool, and you can find tons of free options with just a quick Google. It is one of the easiest ways to determine your restaurant’s value quickly. And while it’s just a rough estimate - nothing beats human calculations - it’s solid enough data to present to potential investors. You can use this data to guide financial decisions and understand how much to sell. It is a super handy little tool.

A calculator for restaurant value will require specific details if you want specific results. Usually, this involves the average total of the last few years’ net profit. The whole process is calculating the business assets minus its liabilities. So, it will consider things like food costs, business loans, and staffing.

Overall, a calculator for restaurant value is a brilliant way to review your business and its progress. It is easy to access online and is usually free. It doesn’t get into the nitty-gritty stuff, like calculating customer lifetime value, but provides an excellent estimate.

Why You Should Always Know Your Restaurant’s Value

So, why should business owners even care about their restaurant’s value? You should care about having an idea of business value for several reasons. The primary reason is that it provides you with a more realistic attitude and awareness of your restaurant. You don’t want to be mindlessly running your business. You should know what you are dealing with, and this includes your business’ value.

There are a few more reasons, though, so let’s get specific:

  • In case you want to pitch your business to potential investors.

Potential investors will want to see what they may be dealing with. And that’s even if you are happy with your head in the sand. They will want to know your restaurant value, annual revenues, and, likely, your valuation method.

  • In case you want to sell your business.

This one is easy. To sell something, you have to know its value. Therefore, you should value your business as soon as you consider selling it. This way, you have all the details you need to get a realistic picture without paying anything substantial initially.

  • If you want to make better financial decisions.

Lastly, you should value your restaurant to make better financial decisions. The best way to make intelligent business decisions is by informing yourself of the basics - like your restaurant value. This way, you can better judge risks and push your business toward financial success.

It might be something you wish to discuss with management, too; raw stats also help them improve business decisions. In many cultures, it goes against the grain to be open about business values. But it is a brilliant tool for more conscious business decisions around trusted individuals.

restaurant value calculator 2

How Do You Calculate the Value of a Restaurant

You know why business valuation matters and why you may need to value your business. But how do you calculate the value of a restaurant? What is the exact process? Using a calculator tool as a valuation method means that this will change slightly on a tool-by-tool basis. Each calculator is likely to use a somewhat different process. You should know that you will need your basic accounts and stats like annual revenue to hand. It’s a nightmare to do manually, with over five different complex sums you need to calculate individually, like price-to-earnings ratios. But as a rough idea of what you are likely to have to input, here’s the basics of business value calculations:

Business Value = Net Assets

This means you need to add everything your business owns, like equipment, inventory, and even your building. You then subtract any liabilities, like loans or rent costs. To do this through a calculator, you need all your books in one place and these figures to hand.

The calculator then manages the rest based on the figures you input. The more complex sums will then be automatically done for you.

If you calculate this manually, you’ll need to calculate each of the following:

  • Value of net assets
  • Discounted cash flow
  • Price-to-earnings-ratio
  • Immeasurables valuation
  • An industry rule of thumb
  • Entry cost

As you can see, using a calculator makes it so much easier. This is especially true for those just wanting a quick insight into their business value without the hassle.

restaurant value calculator 3

Final Thoughts: Is a Restaurant Value Calculator Good Enough?

Is a business valuation calculator good enough for what you need? Well, what do you need? If you want a calculator to give a rough estimate of value to potential investors, the answer is likely yes. The answer is yes if you want an idea of how much your business could sell for. The answer is yes if you want an idea of value to make better business decisions.

The only downfall with a calculator tool is when you must decide on final prices to sell your business. It doesn’t factor in more human calculations, like judging a prospective buyer’s interest. In this case, use it as a starting point only.

Getting an idea of your business value is a great decision. It is fantastic that you are taking this next step. What about if you have just found out your business value, though? Are you disheartened about your business value and profit? You should look at investing in WiFi marketing. WiFi marketing can improve customer loyalty and boost overall profit through repeat customers.

Beambox is the best WiFi platform to take full advantage of this customer boost. Do you want to bump up the stats you currently see on your restaurant value calculator? Let us help you to boost your business through good, old-fashioned customer loyalty. Start your Beambox free trial today. There’s nothing as effective as WiFi marketing for boosting profit in a way that directly benefits your customers.

Get Started With Free WiFi Marketing

Beambox helps businesses like yours grow with data capture, marketing automation and reputation management.

Sign up for 30 days free

Grow your business and customer loyalty with guest WiFi!

Related posts