What Is My Bar or Pub Worth?

Bars, pubs, and taverns attract a wide range of buyers — from first-time owners pursuing a dream to experienced operators expanding their portfolio. Valuations depend heavily on the liquor license, location, and whether the business has diversified beyond just drinks.

Typical Valuation Ranges

Most bars and pubs sell for 2x to 3.5x SDE.

Factors that push toward the higher end:

• Valuable liquor license (limited availability in the market)
• High-traffic location with strong weekend and weeknight business
• Food program generating 30%+ of revenue
• Entertainment revenue (live music, events, trivia nights)
• Long-term lease with favorable terms
• Strong brand and loyal customer base
• Clean, well-maintained premises

Factors that push toward the lower end:

• Owner bartends most shifts
• Drink-only operation with no food program
• Late-night only (limited hours, higher liability)
• Short remaining lease
• Declining revenue or neighborhood deterioration
• Cash-heavy with unreliable financial records

The License Factor

In states with limited liquor licenses, the license itself can be worth $50K–$300K+ independently. This is a significant component of total business value. Know your license type, transferability rules, and standalone market value.

Key Metrics Buyers Evaluate

Revenue per square foot: Strong bars generate $400–$800+ per square foot annually.

Pour cost: Target 18–22% pour cost on liquor, 22–26% on beer. Higher costs indicate waste or theft.

Food vs. beverage mix: Bars with 30%+ food revenue are more bankable, easier to finance, and attract more buyers.

Day-part diversity: Businesses with lunch, happy hour, dinner, and late-night revenue are more stable than late-night-only operations.

How to Increase Your Bar's Value

1. Add food. Even a simple menu dramatically improves your buyer pool and financing options.
2. Build events programming. Trivia, live music, watch parties, and private events create predictable traffic.
3. Clean up your books. POS tracking for every transaction. Cash-heavy bars with murky records face steep discounts.
4. Secure your lease. 5+ years remaining. Location is everything.
5. Build a management team. Hire bar managers who can run shifts without you present.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.