Restaurant transactions weigh goodwill and location more heavily than most commercial categories — and if liquor is involved, the licence transfer process adds its own timeline to plan around.
Underwriting: Adjusted EBITDA, Not Owner Estimates
Restaurant valuation is generally based on a multiple of adjusted EBITDA (seller's discretionary earnings) from verified financials — not owner-provided summaries. Watch for cash-heavy sales that are hard to verify, declining year-over-year trends, and rent that represents a disproportionately high share of revenue.
Goodwill and Location Carry Real Weight
A strong location with an established customer base can represent a meaningful share of a restaurant's total value beyond the equipment and lease alone — which is also why a change of concept after purchase carries real risk if you're counting on that existing customer base.
Kitchen and Lease Condition
Confirm the remaining lease term, whether existing kitchen and hood infrastructure suits your concept without major buildout, and whether the landlord's use clause allows a change of concept if you're planning one.
The Liquor Licence Transfer Process
A liquor licence does not transfer automatically with a restaurant sale — it goes through a formal approval process with BC's Liquor and Cannabis Regulation Branch. The application fee is $330, the buyer doesn't need to be a Canadian citizen or resident but does need a CRA Business Number and Business BCeID, and the establishment can generally stay open during the transfer process. BC modernized its rules in 2026 to also permit licensee-to-licensee alcohol sales, worth asking about if that's relevant to your deal structure.
Franchise vs. Independent
Franchise purchases require franchisor approval of the buyer and come with ongoing royalty and marketing fees and brand-standard requirements, in exchange for established brand recognition and operational support. Independent restaurants offer full operational freedom but rely entirely on their own reputation.
Labour Costs Are a Real, Current Factor
BC's minimum wage rose to $18.25/hour on June 1, 2026 — a genuine, ongoing pressure on restaurant margins worth building into your underwriting rather than assuming last year's numbers still hold.
Manan works across the Fraser Valley's restaurant and food-service market and can walk through underwriting and licence-transfer timelines for a specific opportunity.