Restaurant Listings Analysis
A 7-year-old boba tea and fast-food shop in Harris County asks $119,000 — while claiming $250,000 in EBITDA and disclosing zero revenue. The math doesn't survive a napkin. Educational content — not investment advice.
By Justin K. Sellers · 11 min read · March 13, 2026
A boba tea and fast-food restaurant in Baytown, TX is listed for sale at $119,000.
The broker reports $250,000 in EBITDA. Revenue is not disclosed.
That produces a 0.48x EBITDA multiple.
According to Peak Business Valuation, restaurants typically transact at SDE multiples of 2.14x to 2.96x. For fast-food restaurants specifically, Peak reports SDE multiples ranging from 1.5x to 2.83x. We Sell Restaurants confirms multiples of 1.5x to 3x for most restaurant categories.
At 0.48x EBITDA, this listing is priced at a fraction of any recognized benchmark.
Something is wrong.
Live Listing — March 13, 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: $119,000 - Annual Revenue: Not Disclosed - Cash Flow (SDE): Not Disclosed - EBITDA: $250,000 - Established: 2018 (7 years operating)
- Location: Baytown, TX (Harris County) - Size: 1,250 square feet - Monthly Rent: $4,150 - Lease: Not disclosed - Seating: Not specified - FF&E Value: Included (value not separately stated) - Inventory: Not specified
- Employees: 6 (breakdown not specified) - Hours: Not disclosed - Services: Boba tea and fast-food; delivery via DoorDash, GrubHub, UberEats; online ordering via website - Liquor License: Not mentioned - Training: Up to 1 week provided by seller - Reason for Sale: "Motivated seller due to family reason. Please contact agent for more detail info"
"Take advantage of this incredible opportunity to own a thriving boba drink shop in the heart of Baytown, TX. Fully equipped and ready to operate, this business is perfectly positioned in a high-traffic area, surrounded by popular local spots and boasting a loyal customer base."
Key features listed: - "Excellent Google reviews (4.8 stars)" - "Located on the main busy traffic street in Baytown, TX" - DoorDash, GrubHub, UberEats, and website already set up - "Fully equipped with all appliances, equipment, cashier systems, and everything are in great or new conditions" - "Developed a loyal customer base"
- Asking price: $119,000 - Reported EBITDA: $250,000 - EBITDA multiple: 0.48x - Reported SDE: Not Disclosed - Reported Revenue: Not Disclosed
Industry Benchmark:According to Peak Business Valuation, restaurants transact at SDE multiples of 2.14x to 2.96x. Fast-food restaurants specifically range from 1.5x to 2.83x SDE. We Sell Restaurants reports multiples of 1.5x to 3x for most restaurant types.
This listing: 0.48x EBITDA — with no SDE or revenue disclosed.
A business with $250,000 in EBITDA priced at $119,000 is either the deal of the decade or the numbers are wrong. There is no third option.
For context: at 2.14x SDE (the floor of the industry range), a business earning $250,000 would be worth approximately $535,000. At 1.5x — the lowest reasonable multiple for any restaurant — it would be worth $375,000. The ask of $119,000 implies a multiple so far below market that the stated EBITDA cannot be taken at face value without documentation.
Translation: Either the $250,000 EBITDA is inaccurate, or this is a motivated seller willing to leave several hundred thousand dollars on the table. Buyers should approach this listing assuming the former until proven otherwise.
What's missing from this listing that might explain a 0.48x EBITDA multiple on a 7-year-old business?
Industry benchmarks put net profit margins for boba tea shops at 15% to 25%. At 25% — the high end of the range — $250,000 in net profit would imply $1,000,000 in revenue. At 15%, it would imply $1,666,667 in revenue. Both figures are implausible for a 1,250-square-foot shop with 6 employees in Baytown, TX.
The average annual revenue for a boba shop nationwide is approximately $325,000. A high-volume boba shop selling 300 cups per day at $7 average generates roughly $756,000 annually. A business in a Baytown strip location with 6 employees is unlikely to be at the outer edge of that range — much less generating $250,000 in EBITDA on top of it.
The question: What is the actual annual gross revenue? Can the seller provide three years of tax returns showing $250,000 in EBITDA? Level 2 Decision: - PASS if: Three years of tax returns confirm the EBITDA figure against verifiable gross revenue - FAIL if: No revenue documentation is provided or the EBITDA figure cannot be reconciled with actual tax filingsFor small, owner-operated restaurants, SDE is the standard valuation metric because it reflects total owner benefit — net income plus owner salary, benefits, and discretionary expenses. EBITDA is more commonly used for larger or multi-unit operations. The decision to report EBITDA but withhold SDE on a single-location, 1,250-square-foot boba shop with 6 employees is unusual.
If the owner is working in the restaurant and drawing a salary or owner's draw, that compensation reduces EBITDA but is added back in SDE. The inverse is also possible: if SDE is lower than the $250,000 EBITDA because costs were selectively excluded, it would explain why SDE was left blank.
The question: What is the seller's annual compensation or owner's draw? Is it already included or excluded from the $250,000 EBITDA? What does SDE work out to after add-backs? Level 2 Decision: - PASS if: SDE is clearly higher than EBITDA once owner add-backs are documented, and tax returns confirm - FAIL if: SDE cannot be independently calculated from provided financials, or SDE is materially lower than EBITDASBA lenders typically require lease terms matching the loan amortization period — generally 10 years minimum. Without a disclosed lease term, a buyer cannot assess financing eligibility or business continuity risk. The Fork CPAs treats occupancy above 9% of sales as a stress zone.
Annual rent is $49,800. Without revenue disclosure, occupancy cost as a percentage of sales cannot be calculated. If revenue is $250,000 — a reasonable low estimate for a boba shop — occupancy would be 19.9% of sales. That is more than double the industry stress threshold.
The question: When does the lease expire? Is there a written renewal option, at what rate, and for how long? Does the $4,150 include CAM, insurance, and taxes, or are those billed separately? Level 2 Decision: - PASS if: Lease has at least 3 years remaining with a documented renewal option, and $4,150 is confirmed as all-in occupancy cost - FAIL if: Lease expires within 12 months with no renewal option, or true occupancy cost with CAM exceeds the stated rentA business generating $250,000 in EBITDA — if accurate — represents a substantial income stream. A seller willing to exit at $119,000 under "family reason" pressure with no detail in the listing is either facing genuine personal urgency or has information about the business not reflected in the financials.
The combination of missing revenue, missing SDE, missing lease terms, and a vague exit reason creates a pattern of selective disclosure that should be resolved before a buyer takes the financials at face value.
The question: What is the specific family situation driving the sale? Is the seller leaving the area, facing health issues, or managing an estate? Is there a specific timeline for close? Level 2 Decision: - PASS if: The specific reason is verifiable and unrelated to business performance - FAIL if: The seller cannot provide a clear explanation, or the reason relates to business declineFor a concept operating since 2018, one week of training is unusually brief. The listing highlights a commercial kitchen with a 4-burner gas stove, flat-top grill, deep fryers, walk-in cooler, and prep infrastructure — equipment that suggests a meaningful food production operation beyond drinks. A food operation of this complexity typically requires more knowledge transfer than a single week allows.
A boba shop with a full fast-food commercial kitchen is not a drink-only operation. If the seller departs after 7 days and operational knowledge walks out with them, a new owner faces real continuity risk — especially with no disclosed manager on payroll.
The question: Are there documented recipes and supplier contacts? Which employees are long-term and expected to remain? Is there a manager currently running day-to-day, or is the owner the primary operator? Level 2 Decision: - PASS if: Operating procedures are documented, at least 2 long-tenure employees plan to stay, and an extended training period can be negotiated - FAIL if: The owner is the sole knowledge holder and 1 week is non-negotiableNot generic questions. Specific to this listing's five red flags.
*"The listing shows $250,000 in EBITDA but no gross revenue and no SDE. Can you provide three years of tax returns showing the full P&L? What is the gross annual revenue?"*
What you're listening for: - ✅ Good: "Absolutely — here are the last three years of returns. Revenue is $X, EBITDA is consistently at or above $250K." - ⚠️ Concerning: "The seller is working on the financials. EBITDA is what we've been told." - ❌ Red flag: "The seller doesn't want to share full financials until there's a signed LOI." (On a $119K listing with a $250K EBITDA claim, that is a non-starter.)*"A 1,250-square-foot boba shop in Baytown with 6 employees generating $250,000 in EBITDA would imply unusually high margins. What is the gross revenue, and what are the primary cost line items — labor, COGS, and occupancy?"*
What you're listening for: - ✅ Good: "Revenue is $X. Labor runs about 25%, COGS about 30%, occupancy about 8%. Net gets to $250K with the owner's draw added back." - ⚠️ Concerning: "The $250K is the owner's take-home, not EBITDA in the traditional sense." (This redefines the number entirely — get clarity immediately.) - ❌ Red flag: "The owner manages the financials personally and doesn't share detailed P&Ls."*"The listing doesn't disclose the lease expiration date or renewal terms. When does the current lease end? Is there a written renewal option? Does the $4,150 include CAM and property taxes, or are those additional?"*
What you're listening for: - ✅ Good: "The lease runs through [date], there's a 3-year renewal option at a fixed rate, and $4,150 is all-in including CAM." - ⚠️ Concerning: "The lease is month-to-month right now, but the landlord has been cooperative." - ❌ Red flag: "The lease expires soon and we'd need to negotiate a new one as part of the sale."*"Is the owner currently working in the restaurant? How many hours per week? Is a manager's salary already reflected in the EBITDA, or is owner labor embedded in the number?"*
What you're listening for: - ✅ Good: "The owner works about 10 hours per week. There's a manager on payroll at $X annually, already in expenses. The $250K is passive." - ⚠️ Concerning: "The owner is there most days, maybe 30–35 hours. The EBITDA reflects that." - ❌ Red flag: "The owner runs the place full-time. That's how the margins are so strong." (The BLS reports the median food service manager wage was $65,310 in May 2024. Replace owner labor with a hired manager and the earnings picture changes dramatically.)*"The listing shows 6 employees but doesn't break them down by role or tenure. Can you clarify the staffing structure — full-time versus part-time, and which employees are expected to remain after a sale?"*
What you're listening for: - ✅ Good: "Two full-time, four part-time. We have a shift lead who's been here four years. She plans to stay." - ⚠️ Concerning: "Most staff is flexible. The owner handles most of the day-to-day." - ❌ Red flag: "Staff would be rehired by the new owner." (Operational continuity disappears on closing day.)→ 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 0.48x multiple is the clearest signal this listing sends.
Most likely scenarios:1. The $250,000 EBITDA is overstated. If the actual net earnings after a proper owner salary, accurate COGS, and true occupancy cost land closer to $40,000–$60,000, the $119,000 ask translates to a 2.0x–3.0x SDE multiple — a reasonable price for an independent boba shop in a secondary Texas market.
2. The $250,000 is SDE, not EBITDA — and the listing has mislabeled it. If the seller's total discretionary earnings are $250,000, the $119,000 ask would be a legitimate below-market price on a motivated sale. The multiple would still be 0.48x, but the narrative changes entirely. This distinction must be clarified before any LOI.
3. The lease is short and undisclosed. A business with 12 months or less remaining on its lease — with no renewal option — cannot be financed conventionally and faces immediate continuity risk. A $119,000 ask may reflect that reality.
4. The owner is the business. If the 7-year operating track record lives in the owner's relationships, knowledge, and daily presence, and departure plus a one-week handoff results in customer attrition, the stated earnings may not transfer to a new buyer.
Before making any offer:Request three years of complete tax returns before any further conversation. Verify gross revenue, not just EBITDA, and confirm whether the $250,000 figure is EBITDA, SDE, or something else entirely. Review the physical lease document — not a summary — before signing anything.
Fair value estimate (if all checks out):IF verified SDE is confirmed at $250,000 with documented revenue and a transferable lease:
- Fair value: $535,000–$740,000 (2.14x–2.96x on verified SDE)
At $119,000 asking, that's a 78–84% discount to market. That kind of discount doesn't happen without a reason. Your job is to find out what it is 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 13, 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. Peak Business Valuation. "Fast-Food Restaurant Valuation Multiples." 2025. https://peakbusinessvaluation.com/fast-food-restaurant-valuation-multiples/
3. 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
4. Toast POS. "How Much Do Boba Shops Make?" 2025. https://pos.toasttab.com/blog/on-the-line/how-much-do-boba-shops-make
5. Budget Branders. "How Much Do Bubble Tea Shop Owners Make? 2024 Data." February 2024. https://budgetbranders.com/blog/how-much-do-bubble-tea-shop-owners-make/
6. BusinessDojo. "What Is the Profit Margin of Boba Tea?" June 2025. https://dojobusiness.com/blogs/news/boba-tea-profit-margin
7. The Fork CPAs. "The Ideal Percentage Rent for Your Restaurant." May 2024. https://theforkcpas.com/negotiating-the-ideal-percentage-rent/
8. U.S. Bureau of Labor Statistics. "Food Service Managers: Occupational Outlook Handbook." May 2024. https://www.bls.gov/ooh/management/food-service-managers.htm