Restaurant Business Pricing, Price to Earnings Multiple Down

Nations Restaurant News has summarized data from BizBuySell.com on average restaurant business prices and pricing multiples. As expected, transactions have slowed, and listings are down 25% from 2008. Average price paid : $110K, down 12%. Average asking price: $198K. Median cash flow $89K, requested price earnings multiple: 2.83.

These are principally "Mom and Pop" independents in this sample. Chains do have generally higher multiples.

John A. Gordon Chain Restaurant Earnings and Economics Experts www.pacificmanagementconsultinggroup.com