What is my takeaway shop worth? How takeaways are valued in Australia.
A takeaway shop is usually valued as a multiple of its maintainable earnings, plus stock at value. Maintainable earnings are the profit after adding back one working owner's wage and other owner costs, and after paying market wages for everyone else, including family. For takeaways, the biggest questions are how many hours the owners really work, whether staff are paid correctly, how much trade comes through delivery apps, and the lease.
Takeaways (fish and chips, pizza, burgers, Asian, kebabs and the like) are popular with buyers because they're simple to run and easy to understand. But many are run by families working long hours, and that's where valuations most often go wrong. This guide covers what buyers check and how to price your shop realistically.
Start with maintainable earnings
Start from net profit before tax and add back one working owner's wage and super, depreciation, interest, private expenses and genuine one-off costs. Add-backs explained.
Then look hard at the labour, because that's where takeaways differ.
Family labour and long hours
Many takeaways are run by a couple or family, open seven days and late into the evening. A buyer replaces one owner. Every other hour worked by the owners or family is a job the buyer will have to pay someone to do.
- If two owners work full-time, deduct a market wage for the second one.
- If family members help for little or no pay, deduct a fair wage for their hours.
- If the owner works 70 hours a week, a buyer will compare the profit with those hours. A shop that needs 70 hours of owner time is worth less to most buyers than one that needs 40.
Staff wages and award rates
Takeaways often employ junior and casual staff. A buyer's accountant will check whether wages meet the award. If they don't, the buyer will recalculate the wages at award rates, which lowers the earnings, and they may see underpayment as a legal risk they don't want to take on. If you're not sure your rates are right, fix them before you sell.
Cash
Only takings that appear in the accounts and point-of-sale reports count. Buyers won't pay for unrecorded cash, and their banks won't lend on it.
What moves a takeaway's price
Delivery apps
For many takeaways, delivery apps are now a large share of sales. Buyers want to see:
- Sales through each app, shown separately and net of the delivery app charges
- How much comes from your own phone, online or walk-in orders
- The trend over the last one to two years
A shop that depends heavily on one delivery app carries more risk: if the app changes its charges or ranking, sales can drop. Strong direct and walk-in trade makes a shop more attractive.
The lease and location
Buyers look at the lease term and options, rent against sales, and the location: main-road visibility, parking, nearby homes, and competition in the same strip. For a takeaway, the lease also needs to allow cooking, with approved exhaust.
Sales patterns and hours
Weekly sales by day, the average order value and the number of orders all help a buyer understand the trade. Buyers will also look at when you make your money, and whether a new owner could trade fewer or shorter days without losing much.
Kitchen and compliance
Fryers, ovens, cool rooms, exhaust and grease traps are expensive to replace, so their age and condition affect the price. The food business registration needs to transfer or be reissued, and a good food safety record helps.
Franchise takeaways
If your shop is part of a franchise, the value also depends on the franchise agreement:
- The franchisor usually has to approve the buyer, and there may be a transfer fee, training requirements, or a refurbishment the new owner has to complete.
- The time left on the franchise agreement matters as much as the time left on the lease.
- Royalties and marketing levies are normal running costs, not add-backs.
Talk to your franchisor early. Many have their own process for resales.
A worked example
All figures are illustrative, made up for this example, and are not industry data.
A fish and chip shop is run by a couple who both work about 60 hours a week, seven days. Their drawings are one line in the accounts. They also employ junior casuals, whose rates turn out to be slightly below the award. Net profit before tax was $65,000.
| Item | Amount |
|---|---|
| Net profit before tax | $65,000 |
| + Owners' drawings, both owners (combined line) | $90,000 |
| – Market wage for the second full-time working owner | –$60,000 |
| + Depreciation | $8,000 |
| + Interest on equipment finance | $1,500 |
| + One-off fryer replacement | $6,000 |
| – Junior casual wages brought up to award rates | –$7,000 |
| Maintainable earnings (PEBITDA) | $103,500 |
If buyers were paying, say, 1.3 to 1.8 times PEBITDA for a shop like this (illustrative), it would be worth about $135,000 to $185,000, plus stock at value. Strong walk-in trade and a long lease would push it up the range. Heavy dependence on one delivery app, or a buyer seeing they'd have to work the same 60-hour weeks, would push it down.
Without the two labour adjustments, the owners would have shown $170,500. That's $67,000 more than a buyer can actually earn, and it's exactly what a buyer's accountant checks first.
What takeaway buyers will ask for
- Two to three years of profit and loss statements, plus the current year to date
- Point-of-sale reports: weekly sales by day, order numbers and average order value
- Delivery app statements, and a split of app, phone, online and walk-in sales
- The staff roster with roles, hours and pay rates (no names needed at first)
- The lease, and the franchise agreement if there is one
- An equipment list, and the food business registration
Also see What is my café worth? and What is my restaurant worth?
What's your takeaway worth?
Upload your P&L, and add your lease and roster if you have them. AUS Brokers works out your maintainable earnings with the add-backs and labour adjustments explained, applies the multiple range for takeaways of your size, and checks comparable shops for sale in your state. You can add a buyer-ready profile, with photos, to market it yourself.
An indicative appraisal only. AUS Brokers doesn't provide valuations, and doesn't act for buyers or sellers. Selling in Victoria? Vic Brokers can sell it for you.
Frequently asked questions
How much is a takeaway shop worth in Australia?
It depends mainly on its maintainable earnings: net profit plus one working owner's wage and other add-backs, after paying market wages for everyone else, including family. That figure is multiplied by what buyers pay for takeaways of that size, and stock is added at value. The lease, delivery app dependence, the hours needed and the condition of the kitchen all move the price.
Do delivery app sales count toward a takeaway's value?
Yes, but net of the delivery app charges. Buyers also weigh how much of the trade depends on one app, because changes to its charges or ranking can cut sales quickly. Strong walk-in and direct orders make a shop more attractive.
Is a franchise takeaway valued differently?
The same earnings method applies, but the franchise agreement matters too: the franchisor usually has to approve the buyer, there may be a transfer fee or refurbishment, and the time left on the agreement affects the value. Royalties and marketing levies stay as costs.
What if my staff are paid below award rates?
A buyer will recalculate wages at award rates, which lowers the maintainable earnings, and may see the underpayment as a legal risk. It's best to fix pay rates before you sell.
What do takeaway buyers look at first?
The profit after one owner's wage and market wages for family, the hours the owners work, delivery app dependence, the lease and location, and the condition of the kitchen equipment.
General information only, not financial, tax or legal advice. Figures in the worked example are illustrative.