Restaurant Listings Analysis
A Tex-Mex restaurant listed at $99,000 with $700K revenue and $124K cash flow. That's a 0.79x valuation multiple. Industry data shows restaurants typically transact at 2.14x to 2.96x SDE. This listing is priced at roughly one-third of the industry standard. Educational content — not investment advice.
By Justin K. Sellers · 11 min read · March 6, 2026
A Tex-Mex restaurant in Dutchess County, NY is listed for sale at $99,000.
The broker reports $700,000 annual revenue and $124,921 cash flow.
That's a 0.79x valuation multiple.
According to industry data, restaurants typically transact at SDE multiples of 2.14x to 2.96x. This listing is priced at roughly one-third of the industry standard.
Something is wrong.
Live Listing - March 6, 2026Disclaimer: This is educational content, not investment advice. Listing availability changes. Financials need independent verification. Listing information summarized here is derived from publicly available marketing materials and may not reflect the full broker listing or current terms. Always conduct your own due diligence and seek qualified professional help before making acquisition decisions.
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- Asking Price: $99,000 - Annual Revenue: $700,000 - Cash Flow (SDE): $124,921 - EBITDA: Not Disclosed - Established: 2012 (13 years operating)
- Location: Dutchess County, NY - Size: 2,200 square feet - Monthly Rent: $4,800 - Lease: Not disclosed - Seating: Indoor plus outdoor seating - FF&E Value: $175,000 (included) - Inventory: $3,000 (included)
- Employees: 8 total (2 full-time, 6 part-time) - Hours: Sun-Thurs 11:30am-8:00pm, Fri-Sat 11:30am-9:00pm - Services: Dine-in, takeout, delivery, catering - Liquor License: Required - Training: 2 months - Reason for Sale: "Owner is retiring"
"Turnkey opportunity to own a beloved, long-established Tex-Mex and U.S. Southwest style restaurant with a strong local following."
Key features listed: - Fresh ingredients, no frozen food - Seed-oil-free salads and dressings - "Profitable catering segment" - "Online ordering and loyal repeat customer base" - "Strong reputation & regular clientele"
- Asking price: $99,000 - Reported cash flow (SDE): $124,921 - Valuation multiple: 0.79x
Industry Benchmark:According to Peak Business Valuation's restaurant industry data, restaurants typically transact at SDE multiples of 2.14x to 2.96x.
Another valuation firm reports multiples typically range from 1.5x to 3x SDE.
This listing: 0.79x
For most buyers, this is where you stop.
Healthy restaurants don't sell at less than 1-year cash flow unless something is seriously wrong.
What's missing from this listing that might explain 0.79x?
Median small restaurant business sales reached $720,000 in 2024, about 20% above pre-pandemic levels, though discretionary earnings grew at slower rates at around 15% higher than pre-pandemic median earnings.
Translation: Restaurants are generating revenue but margins are thinner.
The question: Is this restaurant's $700K: - Growing? (Healthy) - Flat? (Losing customers, raising prices to compensate) - Declining? (Could explain 0.79x)Without 3-year P&Ls, you don't know.
Level 2 Decision: - PASS if broker provides 3-year P&Ls showing stable/growing revenue - FAIL if broker won't provide revenue trend dataAccording to restaurant industry benchmarks, ideal occupancy cost is 5-8%, acceptable is 8-10%, and distressed is 10%+.
8.2% is at upper threshold.
The risk:If lease expires in 12-18 months and landlord wants $7,000/month renewal: - New occupancy: 12% - Business becomes unprofitable - This could explain 0.79x multiple
Level 2 Decision: - PASS if lease has 5+ years remaining with renewal option - FAIL if lease expires within 24 months or no renewal optionGeneric broker language.
Could mean: - Actual retirement (age 65+, planned exit) - Operational burnout - Health issues - Declining sales - Lease problems - Partnership dissolution
The question: Why sell for $99K today when business generates $124K/year?If you held 12 more months, you'd collect $124K. Why take $99K now?
Level 2 Decision: - PASS if owner provides specific age, timeline, legitimate reason - FAIL if vague answer or won't explain urgencyAccording to NY State Liquor Authority, liquor licenses cannot be "transferred" in asset purchases. New owners must apply for new licenses with SLA review taking 22-26 weeks. Temporary permits are available for 90 days but not guaranteed, and violations during temporary permit can result in permanent license denial.
Timeline: 5-7 months typical, can extend to 12+ months if complications.
Financial impact:Tex-Mex restaurants with full bar typically generate 35-45% of revenue from alcohol.
If license denied: - Revenue loss: $245K-$315K annually - Business model destroyed
Level 2 Decision: - PASS if location grandfathered, zero violations, transferability confirmed - FAIL if violations exist or transfer uncertainFull-service restaurants operate at 10-15 labor hours per $1,000 revenue.
This restaurant: 10.4 hours per $1K (low end = lean staffing)
Translation: Owner likely works 30-40 hours/week unpaid.
Real cash flow calculation:If new owner hires manager at $50K: - Reported SDE: $124,921 - Manager cost: -$50,000 - Adjusted SDE: $74,921 - Adjusted multiple: 1.32x (more realistic, still low)
Level 2 Decision: - PASS if buyer plans hands-on operation (no manager needed) - FAIL if buyer expects passive ownershipNot generic questions. Specific to THIS listing's red flags.
"Your listing asks $99K for $124K annual cash flow. Industry standard is 2.0-3.0x SDE. What specifically justifies selling below 1-year cash flow?"
What you're listening for: - ✅ Honest: "Lease expires in 18 months, landlord won't renew" - ❌ Red flag: Vague, deflection, won't answer"What was revenue for 2023, 2024, and 2025?"
What you're listening for: - ✅ Good: $650K → $675K → $700K (growing) - ⚠️ Concerning: $700K flat (losing traffic) - ❌ Red flag: Declining or won't provide"How many years remain on lease? What are renewal terms? What have rent increases been over last 3 years?"
What you're listening for: - ✅ Good: "7 years remaining, renewal option at 3% escalation" - ⚠️ Concerning: "2 years left, renewal requires negotiation" - ❌ Red flag: Won't disclose"Why sell for $99K instead of holding 12 more months to collect $124K cash flow?"
What you're listening for: - ✅ Good: "Owner 68, moving to Florida, wants clean exit by June" - ⚠️ Concerning: "Owner has other opportunities" - ❌ Red flag: Won't explain urgency"What type of license? Any violations last 5 years? Is location grandfathered under 500-foot/200-foot rules? Backup plan if my application denied?"
What you're listening for: - ✅ Good: "Full liquor, zero violations, grandfathered since 1995" - ⚠️ Concerning: "Beer/wine only, one violation 2023 (resolved)" - ❌ Red flag: Won't provide documentation→ Schedule site visit
If broker won't answer OR answers confirm problems:→ WALK AWAY
Disclaimer: This is educational content, not investment advice. Listing availability changes. Financials need independent verification. Listing information summarized here is derived from publicly available marketing materials and may not reflect the full broker listing or current terms. Always conduct your own due diligence and seek qualified professional help before making acquisition decisions.
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The 0.79x multiple is the clearest signal.
Industry data shows restaurants typically transact at 2.14x to 2.96x SDE. This listing is one-third of that.
Most likely scenarios: 1. Lease expires within 18-24 months (landlord won't renew or wants higher rent) 2. Revenue may be declining (no trend data disclosed) 3. Real SDE is $70K-$90K (after adjusting for owner labor) 4. Seller may have personal urgency driving below-market pricing Before making any offer:Get 3-year P&Ls. Review complete lease. Verify liquor license status. Interview seller directly.
Ask: "Why $99K for a $124K cash flow business?"
If seller won't answer, walk away.
Fair value estimate (if all checks out):IF revenue stable, lease secure, license transfers, AND you operate hands-on (no manager): - Real SDE: ~$75K (after owner labor adjustment) - Fair value: $150K-$225K (2.0-3.0x on adjusted SDE)
At $99K asking, you're getting 34-56% discount... because something is wrong.
Your job: Figure out what before you buy.
[BROKER_CARD]
This analysis uses publicly available listing information for educational purposes. It applies the evaluation framework from How to Buy a QSR Restaurant: The Complete Buyer's Guide. For a broader look at what any listing won't show you before you dig, see What a Restaurant Listing Doesn't Tell You.
Research conducted March 6, 2026.
For corrections: justin@qsrresearchhub.com
*This listing was active at time of publication. Listing links may expire after sale or withdrawal — this is expected for active market listings.*
1. Peak Business Valuation. "Valuation Multiples for a Restaurant." November 2024. https://peakbusinessvaluation.com/valuation-multiples-for-a-restaurant/
2. We Sell Restaurants. "How to Value a Restaurant Business in 2025." 2025. https://blog.wesellrestaurants.com/how-to-value-a-restaurant-business-in-2025-a-practical-guide-for-buyers-and-sellers
3. ChowNow. "Restaurant Industry Benchmarks." October 2025. https://get.chownow.com/blog/restaurant-industry-benchmarks/
4. BentoBox. "8 Key Restaurant Benchmarks To Know." 2025. https://www.getbento.com/blog/restaurant-benchmarks/
5. New York State Liquor Authority. "Get a License." March 2026. https://sla.ny.gov/get-license
6. Danow Group. "Buying And Selling A Business With A Liquor License." December 2023. https://thedanowgroup.com/buying-and-selling-a-business-with-a-liquor-license/
7. Toast. "Average Restaurant Profit Margin [2025 Data]." 2025. https://pos.toasttab.com/blog/on-the-line/average-restaurant-profit-margin