You want to sell your restaurant? Then it's good to know what the takeover market in the restaurant field looks like. Mainly due to staff shortages, many restaurant owners are entering the takeover market to find suitable staff through acquisitions and benefit from the associated cost savings.
ABN Amro expects further increases in scale in the Dutch restaurant industry in the coming years. Chains will become larger and above-average takeovers will take place. Hospitality companies must have a certain size in order to serve the demanding consumer optimally.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In hospitality, tourism and recreation, the sector to which restaurants belong, an indicative range of EBITDA multiple of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In the short term, Rabobank expects the demand for restaurants to increase further, due to developments in consumer spending and the choice for convenience, by consumers. In the longer term, there will be further chain formation. In addition, process innovations will contribute to more efficient food preparation. When consumer spending declines, eateries without a clear value proposition in particular will not survive.
In figures, the number of restaurants in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer restaurants many growth and acquisition opportunities:
The meal delivery market is booming. For many restaurants, it has become an integral part of their business model. But the kitchen must be able to handle it, not all meals are suitable and restaurant guests must not suffer. Also because of the commissions, the tight deadlines for delivery and the chance of losing focus, there are restaurateurs who deliberately choose not to deliver meals.
The delivery market also provides access to new audiences. Tourists who rent a place to sleep and want to eat well while enjoying their rented apartment. Longstayers - those who live and work for a few months - often have the money but not the time to cook at home. And tenants of workspaces, such as freelancers, who want to eat with colleagues or partners without using the cafeteria, is also a potential new target group.
Food waste is a social problem, which is getting more and more attention. Rabobank expects that increasing social pressure will encourage them to combat food waste. This presents an opportunity for restaurant owners, by showing the increasingly conscious consumer that food is being handled consciously. In addition, combating food waste also offers opportunities to increase profitability.
A new generation of chefs focuses mainly on local and sustainable cooking. The products come from the environment, are of good quality, so it is also not for nothing that botanical cuisine got a Michelin star. Sustainable gastronomy is here to stay.
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