By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-06-26
What a restaurant in Dubai is actually worth: the 3x to 5x EBITDA reality, why location and lease terms dominate, and the adjustments buyers make that owners never expect.
F&B sits at the lower end of UAE multiples because earnings are fragile: tastes shift, leases end, staff move, and margins are thin. Within the 3x to 5x range, position depends on trading history (three stable years beats one great year), whether profit survives paying a manager to replace the owner, brand strength beyond a single location, and delivery-platform economics. A concept that is genuinely franchisable or already multi-site can push above the range; a one-man kitchen rarely reaches its bottom.
In UAE F&B the lease often is the business. Buyers examine the remaining term, renewal rights, rent-to-revenue ratio (healthy is typically under 10 to 12 percent), and whether the landlord will consent to transfer. The trade licence and food-safety approvals must transfer cleanly, and in some venues (malls, hotels) the operator agreement matters more than the licence. Weakness in any of the three L's discounts the multiple faster than weak sales do.
F&B accounts commonly mix personal costs, unrecorded cash adjustments, and an owner drawing either nothing or everything. A buyer-grade valuation restates EBITDA with a market salary for the operator, arm's length rent if premises are owner-linked, one-off costs removed, and supplier rebates verified. If sales cannot be traced to POS records and delivery platform statements, buyers discount them; unverifiable revenue is worth little in a sale.
What multiple do restaurants sell for in the UAE?
Typically 3x to 5x normalised EBITDA. Single-location owner-operated outlets sit at the lower end; profitable multi-site brands with management depth and transferable leases reach the upper end. Fit-out and equipment value usually sets a floor rather than the price.
Does my fit-out cost count toward the valuation?
Not directly. Buyers pay for the profit the fit-out generates, not what it cost. A high-spec fit-out that does not produce EBITDA adds little beyond asset floor value, though it can support the top of the multiple range by reducing a buyer's capex.
How do buyers treat delivery platform revenue?
As real but lower-quality revenue: commissions compress margins and the platform owns the customer relationship. Buyers verify it against platform statements and weigh a heavy delivery mix slightly below equivalent dine-in profit.