Restaurant transactions fell 16% year-over-year and 5% from Q1 2025, according to BizBuySell’s latest report. Yet despite the slowdown, prices are climbing, signaling strong demand for profitable restaurants.

Median selling prices rose 3.3% from last year and 16.3% from last quarter, while the median revenue of sold restaurants reached $780,823, up nearly 7%. Median cash flow dipped slightly to $121,000, but cash flow multiples increased to 2.31, showing buyers are paying more for quality operations.

Listings are taking longer to close — about 30 more days than last year — largely due to extended financing and approval processes, not a lack of interest.

Regionally, the South led in both activity and pricing strength, while the Midwest and Mountain regions saw fewer but higher-value deals. The Northeast and Pacific markets faced challenges, particularly in California, where labor and regulatory pressures persist.

Despite economic headwinds, consumer spending in restaurants rose 6.6% year-over-year, nearly double other sectors. Analysts expect activity to pick up as inflation eases and interest rates decline later this year.

For now, the market favors profitable, well-run restaurants — proof that buyers remain confident and selective in an evolving industry.

🔗 https://www.bizbuysell.com/learning-center/article/restaurant-industry-analysis/?utm_source=bizbuysell&utm_medium=email&utm_campaign=seller112930

#RestaurantSales #BusinessInsights #FoodServiceIndustry #RestaurantTrends