Valuing a restaurant for sale in Franceis never simply a matter of applying a percentage to its turnover: the value of a restaurant business (fonds de commerce) depends on a combination of economic, legal and human factors. In 2026, the French restaurant market remains dynamic but demanding, with buyers paying increasing attention to actual profitability and the strength of the commercial lease. This article explains the valuation methods recognised by professionals — turnover-based valuation, the gross operating surplus (EBE) method and asset-based valuation — as well as the specific factors that influence a restaurant's price: location, Licence IV, equipment, customer base and lease terms. Whether you are selling or taking over a restaurant, understanding these mechanisms is essential for negotiating on solid grounds and securing your commercial property transaction.
In summary
The professional turnover-based valuation method applies a coefficient (generally 40% to 120% of annual turnover excluding VAT) depending on the restaurant's type and location.
The EBE (excédent brut d'exploitation, or gross operating surplus) method measures actual profitability and addresses the limitations of a valuation based solely on business volume.
The commercial lease, Licence IV or alcohol sales licence, professional equipment and customer base are business assets that must be valued separately.
Consulting a real estate adviseror specialist valuer makes it possible to combine several methods and establish a realistic, negotiable price range.
Why valuing a restaurant in France requires a specific approach
Unlike residential property, a restaurant for salein France is most often transferred as a fonds de commerce, or business undertaking: the buyer does not purchase the premises themselves (except in specific cases), but rather a combination of intangible and tangible assets that make it possible to operate the business. This distinction fundamentally changes the valuation approach.
Selling the business or the premises: two different approaches
When the restaurant operator is a tenant, the sale concerns the business undertaking: leasehold rights, customer base, equipment, trading name and, where applicable, the alcohol licence. If the seller also owns the premises, two separate values must be calculated and added together: the value of the business and that of the commercial property itself. The latter requires a conventional property valuationbased on location, floor area and the condition of the building.
A sector sensitive to economic conditions
The restaurant industry remains highly labour-intensive and subject to substantial fixed costs, making its valuation more volatile than that of other businesses. Fluctuations in raw material costs, recruitment difficulties and changing consumer habits (delivery, takeaway services) directly influence profitability and, consequently, the value of the business.
The professional turnover-based valuation method in France
The most widely used method for an initial valuation remains the sector-specific valuation scale, referenced in particular in the Mémento pratique Évaluationpublished by Francis Lefebvre, a reference work for French chartered accountants, notaries and financial professionals.
Applying a coefficient to turnover excluding VAT
This valuation scale proposes a multiplier applied to the average turnover excluding VAT over the last three financial years. For a traditional restaurant, the range generally falls between 40% and 120% of annual turnover excluding VAT, depending on the type of establishment, its market positioning and its location. Some sources suggest an average of around 77.5% for conventional restaurants, with significant differences between a busy city-centre brasserie and a niche fine-dining establishment.
The limitations of this approach
Turnover measures business volume, not profitability. Two restaurants generating the same turnover may produce very different net profits depending on payroll costs, occupancy levels or operating overheads. This is why the valuation scale must always be supplemented by an analysis of actual profitability, particularly through the EBE method.
The gross operating surplus (EBE) valuation method in France
To refine the valuation and provide a more accurate picture of the buyer's ability to repay financing, professionals combine the turnover-based method with a multiple of EBE (excédent brut d'exploitation), a key indicator of operating profitability in French accounting.
How EBE is calculated
EBE corresponds to operating profit before depreciation, provisions, financial expenses and financial income. It reflects the restaurant's operating performance independently of its financing structure. In the restaurant sector, the multiple applied to EBE generally ranges from three to six times, depending on the stability of earnings, the remaining lease term and the business's development potential.
Why this method reassures buyers
A buyer financing their project through a bank loan must demonstrate that the business generates sufficient cash flow to meet repayment obligations. The EBE method helps assess this debt-servicing capacity, making it a central criterion in negotiations and in securing financing.
The tangible and intangible assets that determine the value of a French restaurant business
Beyond overall valuation methods, each component of the business deserves an individual assessment, as it can significantly influence the final price.
The commercial lease and location
Leasehold rights often represent one of the most valuable assets, particularly in areas with high pedestrian footfall, tourist city centres or business districts. The remaining lease term, the level of rent compared with the local market, and the absence of forthcoming clauses allowing rent increases beyond statutory limits are decisive factors. A prime location alone can justify a significant premium in the overall valuation.
Licence IV and alcohol sales authorisations in France
The French Licence IV, which authorises the sale of all alcoholic beverages for consumption on the premises or takeaway, represents an asset in its own right. No new Licence IV licences have been created in France since 1941: the total number in circulation is capped, creating a secondary market where value is determined by supply and demand. Depending on location, a Licence IV may sell for between €7,500 and €50,000, or even more in major metropolitan areas and Paris, where prices frequently reach €30,000 to €65,000. This scarcity makes it a differentiating asset for a restaurant for sale in Francethat already holds this authorisation.
Professional equipment and interior fittings
Professional kitchens, cold rooms, dining-room furniture, point-of-sale and payment systems, extractor hoods and ventilation systems: the condition, age and compliance with hygiene standards of this equipment directly influence the business's value and the investments the buyer will need to anticipate. Recent equipment that meets current standards saves the new operator immediate expenses and therefore makes the transaction more secure.
Customer base and the intangible value of a restaurant business
From a legal perspective, the customer base is the essential component of a French fonds de commerce: without customers, there is no business to transfer. However, valuing this asset remains difficult because it is inseparable from the restaurant's reputation, location and service quality.
Customer loyalty, reputation and online reviews
The consistency of customer traffic, loyalty over several years and the establishment's digital reputation (Google reviews, booking platforms and social media) now influence valuation, particularly for buyers seeking to minimise the risk of losing customers after the transfer.
Seasonality and recurring revenue
A restaurant whose business activity is spread throughout the year, without excessive dependence on seasonal tourist customers, provides greater reassurance to buyers and lenders. Conversely, strong seasonality may justify a discount on the asking price because it weakens cash flow during part of the year.
Specific features of the French restaurant market in 2026
The market for restaurant business transfers in France continues to evolve under the influence of several structural trends that directly affect valuation levels observed this year.
Buyers focusing more on profitability than gross turnover
After several years marked by rising raw material and energy costs, buyers now analyse net margins and cash-generating capacity much more rigorously before making an offer on a restaurant for sale. High turnover combined with low profitability no longer automatically attracts buyers.
The growing importance of sustainable operating practices
Buyers increasingly value establishments that have invested in energy-efficient equipment, optimised food waste management and working arrangements that appeal to employees, in a sector still affected by recruitment difficulties.
Consulting a professional to secure a restaurant valuation in France
Given the diversity of valuation methods and the technical nature of legal matters (leases, licences and employment contracts), it is strongly recommended to seek support from a transaction specialist to establish an objective business valuation.
Combining several valuation methods to establish a reliable price
No single method is entirely reliable. Experts recommend combining the turnover-based valuation scale, the EBE approach and an asset-based assessment of the business's assets (equipment, licence and fittings) to obtain a consistent price range that can be defended during negotiations and accepted by banks financing the acquisition.
Relying on a local French real estate adviser to refine the valuation
A professional familiar with the local market can compare your business with similar property listingsand recently completed transactions in the area, adjust the valuation according to actual demand and support negotiations through to signing. You can therefore find a real estate adviser near youto benefit from personalised support throughout your business sale or acquisition project.
Conclusion
Valuing a restaurant for sale in France requires combining several complementary approaches: the professional turnover-based valuation scale, the EBE method to measure actual profitability, and a detailed analysis of tangible and intangible assets, including the commercial lease, licence, equipment and customer base. In 2026, when buyers are particularly attentive to the financial strength of restaurant businesses, a rigorous and well-supported valuation offers the best guarantee of a balanced transaction for both seller and buyer. Working with a transaction professional remains the best way to secure every stage of the project.
Expert insight
“Valuing a restaurant for sale in France is a far more complex exercise than valuing a conventional residential property, because it involves combining assets of very different kinds: the economic value of the business, measured through turnover and EBE; the asset value of equipment and interior fittings; and the legal value of the commercial lease and, where applicable, the Licence IV. Many sellers tend to overvalue their business by focusing solely on turnover, without considering the actual profitability the buyer will achieve or the bank financing they will need to secure. Yet it is precisely this repayment capacity that determines whether the transaction is financially viable. I systematically recommend combining several valuation methods and documenting every aspect of the transaction file: financial statements for the last three financial years, an equipment inventory, and details of the commercial lease and its renewal conditions. A solid, transparent file reassures buyers, accelerates negotiations and limits the risk of subsequent disputes. It is also what makes it possible to achieve a fair price, neither undervalued nor disconnected from the reality of the local market.”
— Frédéric Rémy, Sales Performance Director at Capifrance
FAQ – Frequently asked questions
What percentage of turnover should be used to value a restaurant in France?
According to the professional valuation scale, a restaurant is generally valued at between 40% and 120% of its annual turnover excluding VAT, with an average often observed at around 70% to 80%, depending on the location and type of establishment.
Should the French Licence IV be included in the business sale price?
Yes. The Licence IV is a separate asset that should be valued individually. Its price can range from €7,500 to more than €65,000 depending on the city, due to the cap on the number of licences in circulation since 1941.
What is the difference between selling a restaurant business and selling the premises in France?
Selling the fonds de commercemeans transferring the business itself (customer base, leasehold rights, equipment and licence), while selling the premises concerns the commercial property itself. Both may be sold separately or together, depending on the owner's situation.
Why does the EBE method complement turnover-based valuation?
Because turnover does not reflect the actual profitability of the business, whereas EBE measures operating performance and the buyer's ability to repay potential bank financing.
Is it useful to consult a professional to value a restaurant in France?
Yes, because restaurant valuation combines technical economic, legal and asset-related considerations. A specialist adviser can combine valuation methods to establish a realistic and negotiable price.
Author
Frédéric Rémy – Director of Sales Performance
"A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors."
