Restaurants for Sale
in BC & the Fraser Valley
Independent restaurants, franchise food businesses, fast-casual concepts, ethnic restaurants, cafes, and pubs across Surrey, Langley, Vancouver, and the Fraser Valley. Both turnkey acquisitions and underperforming concepts ready for a strong operator.
Why BC Restaurant Transactions Need Specialized Representation
Restaurants are the most-transacted commercial category in BC — and also the category where buyers most often overpay. The combination of leasehold real estate, transferable permits, equipment, brand goodwill, and operating cash flow makes a restaurant simultaneously easier to acquire than other commercial assets and harder to value correctly.
Surrey and the Fraser Valley have an exceptionally active restaurant market driven by population growth, diverse demographics, and a strong ethnic restaurant scene. South Asian, Korean, Chinese, Mexican, and traditional Canadian restaurants all change hands frequently. Locations along King George Boulevard, Scott Road, Highway 10, and in Langley's Willoughby and Walnut Grove neighbourhoods see consistent transaction volume.
The single biggest mistake new restaurant buyers make is over-relying on the seller's reported revenue without verifying it against bank deposits, POS reports, and supplier invoices. The second mistake is underestimating capex required to refresh dated equipment and décor. Both are preventable with proper representation.
How Restaurants Are Valued
The four core valuation drivers — and where most buyers go wrong
Revenue, Prime Cost & Net Cash Flow
Restaurant valuations key off three numbers: top-line revenue, prime cost (food + labour as a % of revenue), and net cash flow to the owner-operator. A well-run independent restaurant runs prime cost at 55–62%. Above 65% is a red flag. Net cash flow multiples typically range 1.5–3.5× depending on lease, brand, and concept strength.
Liquor Licence
BC Food-Primary and Liquor-Primary licences are a major source of value. Liquor-Primary (bars, pubs, nightclubs) licences are tightly capped and transfer at premium. Food-Primary licences (full-service restaurants) are more available but still add meaningful value over no-licence operations. Transfer requires BC LCRB approval — typically 60–90 days.
Lease Terms & Equipment
Most restaurants are leasehold. Term remaining (5+ years strongly preferred), renewal options, rent as a % of sales (10–15% healthy, 18%+ problematic), demolition clauses, and landlord consent on transfer. Equipment value typically $50K–$300K — verify exclusivity to the unit, not chattels owned by the landlord.
Brand, Concept & Loyalty
Established restaurants with strong online ratings, loyal customer base, recognizable concept, and quality staff transfer well. Franchise restaurants come with operational support and brand recognition but charge ongoing royalty (4–8% of sales) and require corporate approval of the buyer.
Restaurant Due Diligence Process
Eight verification streams that separate a smart restaurant acquisition from a regret purchase
Financial Verification
POS reports vs. bank deposits vs. tax returns over 3 years. Particular attention to cash sales reconciliation, owner add-backs, and rent + labour as a % of revenue.
Licence Transfer Process
Liquor licence (Food-Primary or Liquor-Primary) transfer through BC LCRB, food handler certificates, business licence, and any specialty permits (patio, late-night, gaming).
Lease Deep Dive
Term, escalation, renewal options, exclusivity (will the landlord lease to a competitor next door?), demolition clauses, landlord consent, and any tenant improvement reimbursements.
Equipment & Leasehold Inventory
Detailed equipment list with ages and condition. Verify ownership (vs. landlord chattels or leased equipment). Walk-through with restaurant equipment specialist for any concept-specific gear.
Health Authority Status
Fraser Health or Vancouver Coastal Health inspection history, any open infractions, food safety training records, and water/sewer status for any required upgrades.
Staff & Operating Systems
Key employee retention plan, wage rates relative to market, any union exposure, scheduling and inventory systems, and supplier relationships.
Brand & Online Reputation
Google/Yelp/TripAdvisor ratings and trend, social media following, online ordering integration (UberEats, DoorDash, SkipTheDishes fees), and reservation platform.
Financing & Closing
Asset-Purchase Agreement structure, allocation between goodwill/equipment/inventory (matters for tax), liquor licence transfer timing, and lender requirements.
Independent vs. Franchise: Choose Carefully
Independent
Full creative control, lower fixed costs, higher upside, but you build the brand from scratch. Best for experienced operators with strong concept vision and marketing skill. Sale prices typically $150K–$1M depending on volumes and lease.
Franchise
Established brand, operational playbook, supplier negotiation done for you, but ongoing royalty (4–8% of sales) plus marketing fee (1–3%) and corporate approval required for transfer. Sale prices $250K–$2M+ depending on brand and location.
Buying or Selling a Restaurant?
Restaurant transactions are time-sensitive — staff retention, lease conditions, and licence transfer all run on clocks. Let's talk about your goals and put a plan together.
(604) 679-1304