What Is My Coffee Shop Worth?

Coffee shops are one of the most aspirational small business purchases — everyone imagines owning a neighborhood cafe. That dream-buyer pool can work in your favor as a seller, but coffee shop valuations are still grounded in financial reality.

Here's how to understand what your coffee shop is worth.

Typical Valuation Ranges

Most independent coffee shops sell for 1.5x to 3x SDE.

Franchise locations (Dunkin', Scooter's, Dutch Bros) and multi-location independent brands can push higher — 3x to 5x SDE — depending on unit economics and brand strength.

Factors that push toward the higher end:

• Multi-location operation with consistent unit economics
• Strong brand identity and loyal customer base
• Revenue above $500K per location
• Drive-through capability (significantly increases volume)
• Food program generating 20%+ of revenue
• Long-term lease in high-traffic location
• Management in place (not owner-operated daily)

Factors that push toward the lower end:

• Owner works behind the counter daily
• Revenue below $300K
• Sit-down only (no drive-through or mobile ordering)
• Short remaining lease
• Thin margins (below 8% net)
• Declining foot traffic or increased competition
• No differentiation from nearby competitors

What Makes a Coffee Shop Valuable

Location and Traffic

This is the dominant factor. A coffee shop in a high-foot-traffic area with morning commuter patterns, nearby offices, or a college campus has structural demand that persists regardless of ownership. Location quality is the most transferable asset.

Repeat Customer Behavior

Coffee is a daily habit. Shops with a loyal base of regulars who visit 3–5x per week have incredibly sticky revenue. Loyalty programs, mobile ordering, and community engagement reinforce this behavior.

Drive-Through Revenue

Drive-throughs dramatically increase volume capacity. A drive-through coffee shop can do 2–3x the revenue of a comparable sit-down location with lower labor costs per transaction.

Food Program

Coffee-only shops leave margin on the table. Adding pastries, breakfast sandwiches, or a food program increases average ticket by 30–50% and gives customers another reason to visit.

Key Metrics Buyers Evaluate

Revenue Per Square Foot

Strong coffee shops generate $400–$800+ per square foot annually. This measures location productivity and operational efficiency.

Average Ticket

Coffee-only shops average $4–$6 per transaction. Shops with food programs push to $7–$10+. Higher tickets drive better unit economics.

Daily Transaction Count

Volume matters. Successful independent shops process 200–400+ transactions per day. Drive-throughs can exceed 500.

Cost of Goods Sold

Coffee has excellent margins — target 25–30% COGS (including food). Above 35% suggests pricing or waste issues.

Labor as Percentage of Revenue

Target 30–35% labor cost. Above 40% typically means overstaffing or low revenue relative to operating hours.

How to Increase Your Coffee Shop's Value

1. Add a drive-through if possible. This is the single highest-impact capital improvement for coffee shop revenue. Even a walk-up window helps.
2. Build a food program. Partner with a local bakery or develop an in-house menu. Food adds ticket value and differentiates you.
3. Launch a loyalty program. Digital loyalty (Square, Toast, or a dedicated app) drives repeat visits and gives you customer data.
4. Secure your lease. 5+ years remaining with renewal options. Coffee shops are entirely location-dependent.
5. Build your brand. Social media presence, community involvement, branded merchandise. A recognizable brand transfers with the sale.
6. Systematize operations. Recipe cards, training manuals, opening/closing checklists. A buyer needs to replicate your quality without you there.

Ready to Find Out What Your Coffee Shop Is Worth?

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