Restaurant Listings Analysis
A profitable Asian concept in Davidson County with verified sales, a long lease, and a 2.24x multiple. This time the math isn't the red flag — the missing details are. Educational content — not investment advice.
By Justin K. Sellers · 10 min read · March 25, 2026
An Asian restaurant in Nashville, Tennessee is listed for sale at $299,000.
The broker reports $510,209 in annual revenue and $133,399 in owner benefit (SDE).
That's a 2.24x SDE multiple.
According to Peak Business Valuation's restaurant industry data, restaurants typically transact at SDE multiples of 2.14x to 2.96x. This listing is priced right at the low end of that range.
This one is different from the typical distressed listing. The multiple is legitimate. The question isn't whether this is overpriced — it's whether the numbers hold up under scrutiny.
Live Listing — March 25, 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.
- Asking Price: $299,000 - Annual Revenue: $510,209 - Cash Flow (SDE / Owner Benefit): $133,399 - EBITDA: Not Disclosed - Established: Not Disclosed
- Location: Davidson County, Nashville, Tennessee - Size: Approximately 1,600 square feet - Monthly Rent: $4,580 - Lease: Through June 2037 (approximately 12 years remaining) - Seating: ~50 inside, ~12 outdoor patio - FF&E Value: Not Disclosed (fully equipped kitchen included) - Inventory: Not Disclosed
- Employees: Not Disclosed - Hours: Not Disclosed - Services: Dine-in, takeout, delivery - Liquor License: Beer license currently in place - Training: Two weeks (vendor introductions, operations guidance, best practices) - Reason for Sale: "The seller is retiring"
"Buy this profitable Asian Restaurant for Sale in Nashville and step into strong, proven results with immediate cash flow. Verified sales of over $500,000 deliver an Owner Benefit of $133,000, supported by records and clean books that make due diligence straightforward."
Key features listed: - Approximately 22 feet of hood space, six-burner American range, commercial dishwasher, walk-in cooler, and walk-in freezer - SBA lending with 15% down available for qualified buyers - "Relatively limited competition for its cuisine category within the immediate trade area" - Approximately 24,000 vehicles passing the location daily - Beer license currently in place
- Asking price: $299,000 - Reported cash flow (SDE / Owner Benefit): $133,399 - Valuation multiple: 2.24x
Industry Benchmark:According to Peak Business Valuation's restaurant industry data, restaurants typically transact at SDE multiples of 2.14x to 2.96x.
We Sell Restaurants — the broker on this very listing — reports that valuation multiples typically range from 1.5x to 3x SDE.
This listing: 2.24x
This multiple is within the industry-standard range. The price is not the problem. The undisclosed details are.Unlike the distressed sub-1x listings that define most of this series, this restaurant is priced fairly by the numbers. That shifts the buyer's job. You're not hunting for a lowball trap. You're verifying that the reported $133,399 in owner benefit is real, repeatable, and not dependent on the current owner's personal involvement.
The SBA path mentioned in the listing is plausible. At 15% down, the entry cost is approximately $44,850 — far more accessible than a franchise fee at most branded concepts. But SBA lenders will commission their own third-party valuation. If that valuation doesn't support $299,000, the deal structure changes fast.
What's missing from this listing that a buyer needs to know?
We Sell Restaurants notes that sellers should provide three years of tax returns and the most recent year-to-date P&L as standard documentation for due diligence.
Translation: "Verified" means the broker has seen supporting documents. It does not mean those documents show upward or stable trends. A single year of strong revenue can mask a declining business.
The question: Is the $510,209 representative of the last three years, or is it a peak year being used to price the business? Level 2 Decision: - PASS if three years of tax returns confirm stable or growing revenue - FAIL if revenue is declining or the single-year figure is an outlierSDE includes the owner's salary as a standard add-back, representing the full cash flow available to an owner-operator. If the current owner works 60 hours per week without taking a salary, and a replacement manager costs $50,000–$60,000 annually, adjusted SDE drops significantly.
Translation: The SDE figure is only meaningful if you understand how much of it is offset by your own unpaid labor — or by the cost of hiring someone to replace the retiring seller.
The question: What are the actual weekly hours the owner puts in, and what does the current staffing model look like without the owner present? Level 2 Decision: - PASS if the restaurant can operate with existing staff and a manager, with SDE still positive after a management salary is accounted for - FAIL if the business requires heavy owner involvement that isn't currently compensated as an expensePer Metropolitan Nashville and Davidson County ordinance, a beer permit is issued only for the owner to whom it is issued and cannot be transferred to another owner. When ownership changes, the new owner must apply for a new permit.
If 50% or more of the ownership of the establishment changes, a new beer permit must be obtained from the Metropolitan Beer Permit Board, which meets every two weeks.
The Tennessee liquor license process can take anywhere from 40 days to six months depending on the type of license and jurisdiction.
Translation: The beer license does not convey with the sale. A new buyer must apply for a new permit. During the gap between closing and permit approval, the restaurant cannot legally sell beer. That affects revenue and the validity of the SDE projection during transition.
The question: What percentage of total revenue comes from beer sales, and what is the estimated timeline for the new beer permit to be issued by the Davidson County Beer Permit Board? Level 2 Decision: - PASS if beer revenue is a minor percentage of total sales and the permit gap is manageable - FAIL if beer is a significant revenue driver and the permit gap creates meaningful financial exposure during transitionPer the National Restaurant Association's 2025 Restaurant Operations Data Abstract, occupancy costs represented a median of 5.7% of sales among full-service restaurant respondents in 2024.
At $4,580/month, the rent-only occupancy cost on $510,209 in revenue is approximately 10.8% — above the median benchmark. If CAM, taxes, or insurance are additional, the true occupancy burden rises further.
Industry experts note that total occupancy costs should generally be around 6% to 10% of gross sales.
Translation: The rent is presented as "attractive," and the long lease is framed as protection. But the raw rent-to-revenue math sits above the benchmark floor. That is not necessarily disqualifying — Nashville is a high-cost market — but buyers need the full occupancy picture and must confirm the lease is assignable without prohibitive landlord conditions.
The question: Is the lease fully assignable to a new owner? Are there additional CAM, tax, or insurance charges beyond the stated $4,580/month? Does the landlord have approval rights over the transfer? Level 2 Decision: - PASS if lease is assignable, total occupancy costs including all charges stay below 12% of revenue, and landlord approval is straightforward - FAIL if lease is not assignable, landlord has veto rights, or additional charges push total occupancy costs materially above industry normsLabor cost is one of a restaurant's largest expenses and on average makes up 20% to 30% of total revenue. Without knowing the team size or whether key kitchen staff are likely to remain post-sale, a buyer cannot validate the SDE or model realistic labor costs under new ownership.
Translation: "Asian Restaurant" could mean Japanese ramen, Thai, Vietnamese pho, Chinese-American takeout, or Korean BBQ. Each carries different food cost profiles, different skill requirements, and different customer loyalty dynamics. A retiring owner selling a family-operated concept with no documented recipes or systems is a different acquisition than a professionally-managed operation with an experienced kitchen team.
The question: What specific cuisine does this restaurant serve? How many employees are currently on staff, and which of them are likely to remain under new ownership? Are recipes, vendor relationships, and kitchen processes documented? Level 2 Decision: - PASS if staff is stable, operations are documented, and cuisine type fits buyer's operational experience - FAIL if the operation is heavily dependent on the retiring owner's personal relationships, recipes, or presenceNot generic questions. Specific to this listing's five red flags.
"Can you share three years of tax returns or P&Ls, and can you walk me through the year-over-year revenue trend? Is 2024 the highest year on record, or is it representative of consistent performance?"
What you're listening for: - ✅ Good: "Revenue has been consistent — here are three years showing $480K, $495K, and $510K." - ⚠️ Concerning: "2024 was a strong year. Prior years were a bit softer." - ❌ Red flag: "We only have one year of verified financials available.""How many hours per week does the current owner work in the business? Is there a general manager or lead employee who runs daily operations, and are they expected to stay post-sale?"
What you're listening for: - ✅ Good: "Owner works about 20 hours per week in a supervisory role. The kitchen lead has been there four years and wants to stay." - ⚠️ Concerning: "Owner is there full-time but is very motivated to transition quickly." - ❌ Red flag: "Owner runs everything personally — no manager in place.""I understand beer permits in Davidson County are not transferable and the new owner must apply for a new permit. What percentage of total revenue comes from beer sales, and how long has the permit process taken for similar restaurant transfers in this jurisdiction?"
What you're listening for: - ✅ Good: "Beer is less than 5% of revenue. The board meets biweekly and straightforward applications are usually approved quickly." - ⚠️ Concerning: "Beer is about 15% of revenue. The permit process usually takes 4 to 8 weeks." - ❌ Red flag: "We haven't looked into the permit transfer process yet" or beer is a significant revenue driver with no transition plan."Is the lease fully assignable to a new buyer without landlord consent, or does the landlord have approval rights? Are there any CAM charges, property tax pass-throughs, or insurance costs beyond the $4,580/month base rent?"
What you're listening for: - ✅ Good: "Lease is assignable with standard landlord notification. Total occupancy including CAM is approximately $5,200/month." - ⚠️ Concerning: "Landlord needs to approve the new tenant, but they've been cooperative historically." - ❌ Red flag: "Landlord has not been contacted yet" or total occupancy is materially above $5,500/month."What specific cuisine does this restaurant serve? Are recipes, vendor relationships, and operating procedures documented? Is there a GM or senior kitchen employee who will stay through and after the transition?"
What you're listening for: - ✅ Good: "It's a Vietnamese concept. Owner has an operations binder, established vendor accounts, and the head cook has agreed to stay." - ⚠️ Concerning: "Recipes are mostly in the owner's head, but the seller is committed to two weeks of hands-on training." - ❌ Red flag: "It's a family operation. The owner is the kitchen."→ Schedule site visit and begin formal due diligence
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.
This is the rare listing where the headline multiple actually makes sense. At 2.24x SDE, the price is within the standard range. Industry data shows restaurants typically transact at 2.14x to 2.96x SDE. This listing is at the low end of that range — arguably with legitimate upside if the financials hold up.
The real work here is verification, not skepticism about the price.
Most likely scenarios:1. The business is exactly what it appears to be — a well-run, profitable independent Asian restaurant with stable revenue and an owner who is genuinely retiring. If financials verify across three years, this could be a clean acquisition at a fair price.
2. SDE is partially inflated by unpaid or undercompensated owner labor. Once a market-rate manager salary is added to the cost structure, the true owner benefit to an absentee buyer drops materially. The multiple then looks different.
3. The beer permit gap creates a real transition disruption. If beer revenue is meaningful and the new permit takes 60–90 days to process through the Davidson County Beer Permit Board, the buyer absorbs a revenue shortfall during a period when they're also learning the operation.
4. The lease is assignable and the long runway through 2037 is genuinely valuable — but only if landlord approval is not a hidden obstacle and total occupancy costs including CAM stay within acceptable range.
Before making any offer:Get three years of tax returns. Calculate adjusted SDE after inserting a realistic management replacement cost. Ask the broker directly about beer revenue as a percentage of total sales, and confirm the lease assignment process with the landlord in writing before closing.
Fair value estimate (if all checks out):IF three years of financials confirm stable SDE near $133K, owner labor is minimal, and beer/lease issues are manageable:
- Real SDE: ~$120,000–$133,000 (depending on owner labor adjustment) - Fair value: $257,000–$394,000 (2.14x–2.96x on verified SDE),
At $299,000 asking, this deal is priced within fair value range. That is unusual in this market. Your job is to confirm the $133,399 is real — and that nothing disappears the moment the seller walks out the door.
[BROKER_CARD]
This analysis uses publicly available listing information for educational purposes.
Research conducted March 25, 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." September 2023. https://peakbusinessvaluation.com/valuation-multiples-for-a-restaurant/
2. We Sell Restaurants. "How to Value a Restaurant Business in 2025: A Practical Guide for Buyers and Sellers." April 2025. https://blog.wesellrestaurants.com/how-to-value-a-restaurant-business-in-2025-a-practical-guide-for-buyers-and-sellers
3. Metropolitan Government of Nashville and Davidson County. "Chapter 7.08, Beer and Alcoholic Beverages of Less Than Eight Percent." Nashville.gov. https://www.nashville.gov/departments/beer-permits/beer-laws/chapter-708
4. Schaffer Law Firm PLLC. "How To Get A Beer Permit In Nashville, Tennessee." https://schafferlawfirmtn.com/get-beer-permit-nashville-tennessee/
5. Toast. "How to Get a Liquor License in Tennessee." Toast POS. https://pos.toasttab.com/blog/on-the-line/how-to-get-a-liquor-license-in-tennessee
6. National Restaurant Association. "Restaurant Occupancy Costs Were More Than 5% of Sales in 2024." Restaurant.org. https://www.restaurant.org/research-and-media/research/restaurant-economic-insights/analysis-commentary/restaurant-occupancy-costs-were-more-than-5-of-sales-in-2024/
7. NetSuite. "11 Key Restaurant Benchmarks to Measure in 2025." November 2025. https://www.netsuite.com/portal/resource/articles/erp/restaurant-benchmarks.shtml
8. ChowNow. "Restaurant Industry Benchmarks: How To Measure, Understand, And Improve Your Performance." October 2025. https://get.chownow.com/blog/restaurant-industry-benchmarks/