Buying a Restaurant

Covers and spend per head

Restaurant value lives in two numbers: how many seats are filled and what each guest spends. The booking system shows both across seasons. A restaurant that is full on Tuesday, not just Saturday, commands a better price and easier finance.

The kitchen is an asset

A professional fit-out — extraction, refrigeration, cooking line — costs six figures to replicate and can be financed against its own value. Have it independently assessed; a tired kitchen is a negotiation point, not a surprise.

Licence, lease and ties

• —Premises licence conditions and permitted hours
• —Lease length, rent reviews and repairing obligations
• —Any brewery or supplier ties attached to the premises
• —Planning use class — especially for late-night trading

Structuring the finance

Goodwill and leasehold purchases run on term loans with deposits ranging from 5% to 30%; kitchens are often asset-financed separately to preserve working capital. Where the freehold is offered — frequently with lettable rooms above — a commercial mortgage transforms the monthly cost.

Restaurant asking prices typically range from £100,000 to £800,000 for leasehold sites, with freehold restaurants significantly higher. The post-pandemic period has created genuine acquisition opportunities as some operators have consolidated, making this an active buyer's market in many parts of the UK.

If you are ready to look at funding for a specific purchase, read more about Restaurants acquisition finance and loans, including how lenders assess these deals and the areas we cover.