Grocery Store Valuation With Multiples, Value and What Supermarkets Sell For
Enter the store's revenue and owner earnings and read a range benchmarked to what independent grocery stores actually closed at, whether you are setting an asking price or checking a listing before you make an offer.
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
Independent grocery stores and supermarkets sold in the US across the five years 2021 to 2025 went for a median of 2.25x seller discretionary earnings, or 0.29x annual revenue, with a lower quartile of 1.60x and an upper quartile of 3.15x. The median grocery store sale price was $390,000, on median revenue of $1,380,000 and median owner earnings of $192,408, after a median 177 days on the market.
The number that explains the rest of this page: financed with an SBA loan at 10 percent down, a buyer who pays themselves $80,000 a year can support about $617,000 for the median store, far above the $390,000 it sells for. Financing is not what holds grocery prices down. A 13.9 percent owner margin is, because each point of margin on the median store is $13,800 of earnings. This is a benchmark and an estimator, not a certified appraisal.
Closed transactions
01What grocery stores actually sold for
These are sale prices, not asking prices, from grocery stores and supermarkets sold across the five years 2021 to 2025. The source describes them as almost exclusively independent, locally owned stores: general grocers and small supermarkets, meat and fish markets, and ethnic and dietary specialty markets. Most grocery store valuation guides quote an EBITDA range or a public chain's multiple. Neither describes a single independent store on a lease, which is what these are. If you have been pricing from a listing site's instant estimate, our comparison of BizBuySell valuation alternatives explains what those tools leave out.
Median sale price
$390,000
What the middle grocery store actually closed at, 2021 to 2025
Median asking price
$429,000
What the same sold stores were listed at
Median revenue
$1,380,000
Annual sales of the middle grocery store sold
Median owner earnings (SDE)
$192,408
Seller discretionary earnings of the middle store sold
| Grocery stores sold, 2021 to 2025 | Lower quartile | Median | Average | Upper quartile |
|---|---|---|---|---|
| Seller discretionary earnings multiple | 1.60x | 2.25x | 2.66x | 3.15x |
| Revenue multiple (multiple of annual sales) | 0.20x | 0.29x | 0.35x | 0.41x |
| Revenue | $720,000 | $1,380,000 | $2,541,474 | $3,000,000 |
| Owner earnings (SDE) | $115,000 | $192,408 | $360,447 | $360,000 |
Source: BizBuySell grocery store and supermarket business valuation benchmarks, stores sold on the platform 2021 to 2025, read September 2026. The source does not publish the number of sales. Benchmarks, not quotes. The multiple rows and the dollar rows describe the same population but not the same store, so multiplying a median by a median will not exactly reproduce a quartile. The average owner earnings figure sits slightly above the upper quartile, which means a small number of large stores pull the average up.
The size thresholds BizBuySell publishes sit on these quartiles. It states that a store consistently doing more than $3 million of sales may sell for close to 3.15x earnings, and one with $800,000 of sales closer to 1.6x. The upper quartile of sold revenue was $3,000,000 and the lower quartile $720,000. So the practical reading: a small supermarket in the top quarter by sales sells near 3.15x, a neighborhood grocer in the bottom quarter near 1.6x, and the rest is argued out between them. If you are working out how to calculate SDE for the store in front of you, do that first, then find its row in section 10.
Our calculation
02A financed buyer can pay far more than the median grocery store sells for
Most independent grocery stores are bought by an owner-operator with an SBA 7(a) loan, so it is worth knowing what that buyer can borrow. The table runs a loan at 10 years, 10.5 percent, 1.25x debt service coverage and a 10 percent injection against the median $192,408 of owner earnings, at each level of salary the buyer takes out. Everything in it is computed here, not quoted.
| Owner draw the buyer takes | Left for debt service | Supportable purchase price | As a multiple of $192,408 SDE |
|---|---|---|---|
| $0 (buyer takes no salary) | $192,408 | $1,056,245 | 5.49x |
| $60,000 | $132,408 | $726,869 | 3.78x |
| $80,000 | $112,408 | $617,076 | 3.21x |
| $100,000 | $92,408 | $507,284 | 2.64x |
Computed here. Annual loan constant 0.16192 for a 10 year loan at 10.5 percent, so the supportable price is (SDE minus draw) divided by 1.25, divided by 0.16192, divided by 0.90. Illustrative arithmetic, not a loan offer or a credit decision.
At an $80,000 draw the ceiling is $617,076, and the median store sold for $390,000. Work it backwards and a financed buyer could take a salary of $121,365 and still pay exactly the median price. That is the opposite of a convenience store, where the median price sits within a few thousand dollars of the lending ceiling. Grocery inventory is much larger, though, and it is normally counted on the closing date and paid for at cost on top of the business price. Financed on the same loan, every dollar of it comes out of what the buyer can pay for the business.
| Inventory financed on the same loan | Business price supportable at an $80,000 draw | Against the $390,000 median sale |
|---|---|---|
| No inventory on the loan | $617,076 | $227,076 above the $390,000 median sale |
| $50,000 of inventory | $567,076 | $177,076 above the median sale |
| $100,000 of inventory | $517,076 | $127,076 above the median sale |
| $150,000 of inventory | $467,076 | $77,076 above the median sale |
| $200,000 of inventory | $417,076 | $27,076 above the median sale |
Computed here on the same loan terms. The inventory amounts are illustrative inputs, not a published benchmark; count the actual stock of the store in front of you.
The crossover
$135,562
The owner earnings a grocery store needs before a buyer paying the median 2.25x can service the SBA debt and still take $80,000 a year, with no inventory on the loan. The median store earns $192,408, well clear of it. The lower quartile store earns $115,000 and falls short, which is why small grocers sell near 1.6x. With $100,000 of stock on the same loan the crossover rises to $166,430.
Cash to close on the median store
$46,898
A $390,000 purchase at 10 percent down is a $39,000 injection and a $351,000 loan, with a 3 percent SBA guaranty fee of $7,898 on the $263,250 guaranteed portion. Annual debt service is about $56,835, covered 3.39 times by $192,408 of earnings. Add $100,000 of inventory to the loan and cash to close rises to about $58,922, with coverage at 2.69 times.
For a seller, the room in the financing means a well documented store can be priced above the median without scaring off the lender; the limit is what a buyer believes about the margin, not what the bank will lend. For a buyer, it means the offer should be built from the margin and the department numbers, with inventory as a separate line. Our guide to using an SBA loan to buy a business walks through the lender side, and buying a grocery store: cost and cash to close runs the full purchase at three price points.
Regulation
03The authorizations that end when the store changes hands
Part of a neighborhood grocery store's revenue runs on authorizations that belong to the seller. WIC is the sharpest case: the federal rule does not just stop the agreement from transferring, it requires the state agency to terminate it when ownership changes. A buyer who prices the earnings without pricing the gap between closing and re-authorization is paying for income they may not have for weeks.
| Authorization | What the rule says | What it does to a valuation |
|---|---|---|
| WIC vendor agreement | Federal rule for every state WIC program: the vendor must give the state agency advance written notice of a change in ownership, and the state agency then terminates the vendor agreement (7 CFR 246.12(h)(3)(xviii)). The state decides whether a change in business structure counts as a change in ownership. | The buyer applies as a new vendor and has to meet the state selection criteria, which often include stocking rules and a limit on how many vendors the state authorizes. In a neighborhood store where WIC is a steady share of sales, price the gap and the risk of not being re-authorized. |
| SNAP (EBT) authorization | FNS issues a nontransferable authorization to the firm (7 CFR 278.1), so the buyer applies for their own. If a store disqualified from SNAP is sold, the seller is liable for a civil money penalty for the part of the disqualification not yet served (7 CFR 278.6). A WIC disqualification can also bring a SNAP disqualification. | EBT spending is part of the revenue a buyer is paying for. Confirm the store is in good standing with both programs before agreeing a multiple, and file the new application as soon as the purchase agreement is signed. |
| Retail food establishment permit | Issued by the state or county health department to the operator. Most jurisdictions require a new permit or a change-of-ownership application and a pre-opening inspection for a new owner. | An old store can fail a new-owner inspection on equipment that was grandfathered for the seller. Walk the coolers, freezers and meat room with that inspection in mind, and hold back part of the price if repairs are needed. |
| Beer and wine license | Issued by the state, and often the city or county, to the licensee. Transfer rules and timing vary by state. | Beer and wine carry a better margin than most of the store. If the license lapses between closing and approval, so does that margin. Make approval a closing condition. |
| Lease | Held by the seller, assigned to the buyer with the landlord's consent. | A grocery store is expensive to move. A lender will not amortize a ten year loan against a short remaining term, so the lease term and the renewal options are part of the price. |
Sources: 7 CFR 246.12(h)(3)(xviii) and (xxvi) (WIC vendor agreements, change in ownership, reciprocal SNAP disqualification); 7 CFR 278.1 and 278.6 (SNAP retailer authorization and disqualification), read on eCFR in September 2026. Health permit and alcohol rules vary by state and locality; confirm the current rule with each agency before relying on it.
Two consequences follow. First, ask the seller for WIC and EBT sales as a share of the total, from the point of sale system, and file the buyer's applications as soon as the purchase agreement is signed. Second, ask for the store's compliance history with both programs and the health department. A violation history is a discount item on the price, and a WIC disqualification can bring a SNAP disqualification with it.
Our calculation
04How much of the profit is the owner's own work
Seller discretionary earnings include the owner's pay. In many independent grocery stores the owner is also the butcher, the buyer at the produce market or a cashier on busy shifts, and family members often fill the rest. The table prices what happens to the median store's earnings when a buyer hires that work instead of doing it, using Bureau of Labor Statistics median wages from May 2025 plus employer FICA.
| Who does the work | Earnings left for the owner | $390,000 price as a multiple of that | SBA-supportable price, no owner draw |
|---|---|---|---|
| Owner runs the store and the meat counter, no hires | $192,408 | 2.03x | $1,056,245 |
| One meat cutter hired ($42,188 with FICA) | $150,220 | 2.60x | $824,649 |
| A meat cutter and a full-time cashier hired ($77,583) | $114,825 | 3.40x | $630,343 |
Computed here. BLS Occupational Outlook Handbook, May 2025 median pay: meat, poultry and fish processing workers $39,190 per year ($18.84 per hour); cashiers $32,880 per year ($15.81 per hour); each plus 7.65 percent employer FICA. State unemployment insurance and workers' compensation would add more. The hires are illustrative inputs.
To a buyer who will cut the meat and cover the register the way the seller did, the $390,000 price is 2.03x earnings. To a buyer who has to hire both, it is 3.40x, above the upper quartile of what grocery stores sell for. That spread is the most useful question to ask a seller: who works in the store, how many hours, and are they on the payroll register. The answer moves the right multiple by more than anything in the profit and loss statement.
Our calculation
05Where the money goes between the listing and the closing
Grocery stores currently listed ask a median 2.88x owner earnings. Stores that sold went for 2.25x. The 21.9 percent gap is made of two things. Some is selection: listings that ask too much never close and drop out of the sold set. The rest is negotiation: the discount a store takes off its own asking price. Dividing the sold multiple by the sale-to-ask ratio recovers what the sellers who actually closed had been asking.
| Reading of the sale-to-ask ratio | All listings ask | Closers asked | Selection | Sold at | Negotiation | Total gap |
|---|---|---|---|---|---|---|
| Published average sale to ask, 0.98 | 2.88x | 2.30x | -20.3% | 2.25x | -2.0% | -21.9% |
| Ratio of five-year medians, 0.91 | 2.88x | 2.48x | -14.1% | 2.25x | -9.1% | -21.9% |
| Average of the five yearly ratios, 0.97 | 2.88x | 2.31x | -19.8% | 2.25x | -2.6% | -21.9% |
Computed here from the published listing multiples, sold multiples and sale-to-ask ratios. The ratio of medians is $390,000 over $429,000. The yearly ratios were 0.93, 0.91, 0.93, 1.06 and 1.04. The total is 21.9 percent in every row.
Here the readings disagree, and the disagreement is informative. The published average sale-to-ask of 0.98 says sellers who close give up about 2 percent at the table. The ratio of the medians says 9 percent. The average is lifted by 2024 and 2025, when buyers paid more than asking on average. Either way, most of the gap is selection: a grocery store listed near the median ask of 2.88x is usually not the store that sells.
| Sector | All listings ask | Closers asked | Selection | Sold at | Negotiation | Total gap |
|---|---|---|---|---|---|---|
| Grocery stores | 2.88x | 2.30x | -20.3% | 2.25x | -2.0% | -21.9% |
| Convenience stores | 2.32x | 1.98x | -14.7% | 1.82x | -8.0% | -21.6% |
| Liquor stores | 3.18x | 2.94x | -7.6% | 2.85x | -3.0% | -10.4% |
| Pharmacies | 3.02x | 2.75x | -8.8% | 2.45x | -11.0% | -18.9% |
| Restaurants | 2.50x | 2.06x | -17.8% | 1.85x | -10.0% | -26.0% |
| Laundromats | 4.80x | 3.80x | -20.7% | 3.50x | -8.0% | -27.1% |
Same calculation applied to each sector's published figures on the corresponding benchmark pages, using the published average sale-to-ask ratio in each case.
Listings against reality
06What grocery stores for sale are asking
If you are browsing grocery stores for sale, the listings ask more per dollar of earnings than the stores that sold at every quartile. They also report more: median listed owner earnings of $233,000 against $192,408 for the stores that sold, on 18.9 percent more revenue.
| Quartile | Listed SDE multiple | Sold SDE multiple | Difference | Listed revenue multiple | Sold revenue multiple | Difference |
|---|---|---|---|---|---|---|
| Lower quartile | 1.99x | 1.60x | -19.6% | 0.30x | 0.20x | -33.3% |
| Median | 2.88x | 2.25x | -21.9% | 0.42x | 0.29x | -31.0% |
| Average | 4.20x | 2.66x | -36.7% | 0.75x | 0.35x | -53.3% |
| Upper quartile | 4.23x | 3.15x | -25.5% | 0.71x | 0.41x | -42.3% |
| Financials | Grocery stores listed now | Grocery stores that sold | Difference |
|---|---|---|---|
| Lower quartile owner earnings | $120,750 | $115,000 | +5.0% |
| Median owner earnings (SDE) | $233,000 | $192,408 | +21.1% |
| Average owner earnings | $352,287 | $360,447 | -2.3% |
| Upper quartile owner earnings | $400,910 | $360,000 | +11.4% |
| Median revenue | $1,641,000 | $1,380,000 | +18.9% |
| Upper quartile revenue | $3,200,000 | $3,000,000 | +6.7% |
| Implied owner margin (computed here) | 14.2% | 13.9% | +0.3 points |
Listed and sold figures are published. Difference columns and the margin row are computed here.
Two things stand out. The listed average multiple of 4.20x sits almost on the listed upper quartile of 4.23x, pulled up by a small number of stores asking far above the market. And the listed pool is simply bigger, with a similar margin, 14.2 percent against 13.9 percent. So the earnings in listings are not obviously inflated; the multiples are. For a buyer, the sold multiples, not the listing multiples, are the right yardstick for an offer.
Five-year record
07Grocery store sale prices year by year
No sector on this site moved as much. The median sale fell from $500,000 in 2021 to $260,000 in 2022, sat between $290,000 and $340,000 for three years, then jumped to $840,000 in 2025. Owner margins drifted down from 17.4 percent to 11.7 percent over the first four years.
| Year | Median revenue | Median SDE | Owner margin | Avg SDE multiple | Avg revenue multiple | Median sale | Median ask | Sale/ask | Days on market | Effective SDE multiple | Effective revenue multiple |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | $1,617,676 | $281,768 | 17.4% | 2.29x | 0.33x | $500,000 | $517,500 | 0.93 | 198 | 1.77x | 0.31x |
| 2022 | $1,036,191 | $170,890 | 16.5% | 2.27x | 0.29x | $260,000 | $304,500 | 0.91 | 197 | 1.52x | 0.25x |
| 2023 | $1,250,000 | $170,288 | 13.6% | 2.57x | 0.34x | $340,000 | $367,500 | 0.93 | 193 | 2.00x | 0.27x |
| 2024 | $1,180,000 | $137,516 | 11.7% | 2.70x | 0.35x | $290,000 | $320,000 | 1.06 | 173 | 2.11x | 0.25x |
| 2025 | $1,650,000 | $226,854 | 13.7% | 3.38x | 0.43x | $840,000 | $704,500 | 1.04 | 155 | 3.70x | 0.51x |
Revenue, SDE, the two average multiples, sale price, asking price, the ratio and days on market are published. The source prints the 2025 margin as 13.9 percent; its own revenue and SDE figures give 13.7 percent, which we show. The effective multiple columns are computed here as that year's median sale price divided by that year's median SDE and median revenue.
Read 2025 with care. The median sale of $840,000 is 3.70 times that year's median earnings, above the five-year upper quartile of 3.15x, and the median ask was lower than the median sale. That pattern points to a different mix of stores selling, with more large stores in the year, rather than every grocery store becoming worth 2.9 times more than in 2024. The steadier signal is the average earnings multiple, which rose every year from 2.27x in 2022 to 3.38x in 2025, and days on market, which fell from 198 to 155. Buyers are paying more per dollar of earnings and paying it faster.
Cross-check
08Which published multiple to trust
An owner handed a multiple usually multiplies. For grocery stores the revenue route lands closest to the observed median sale. The earnings route at the median overshoots by 11 percent, and both averages overshoot by a quarter or more.
| Method | Arithmetic | Implied value | Against the observed median sale |
|---|---|---|---|
| Median earnings x median earnings multiple | $192,408 x 2.25 | $432,918 | +11.0% |
| Median earnings x average earnings multiple | $192,408 x 2.66 | $511,805 | +31.2% |
| Median revenue x median revenue multiple | $1,380,000 x 0.29 | $400,200 | +2.6% |
| Median revenue x average revenue multiple | $1,380,000 x 0.35 | $483,000 | +23.8% |
| Observed median sale price | reported directly | $390,000 | n/a |
Computed here from the published medians and multiples.
The headline figure on most benchmark summaries is the average earnings multiple, 2.66x here, and the most recent yearly average, 3.38x, is higher still. Applied to median earnings, 2.66x gives $511,805, 31 percent above what the median store actually sold for, and 3.38x gives $650,339. Use the median multiple, 2.25x, for a typical store, check it against 0.29x revenue, and move toward the upper quartile only for a store with sales near $3 million.
Sector comparison
09Grocery stores against the rest of retail
Grocery stores have the highest median revenue of the thirteen retail categories and the lowest average revenue multiple, 0.35x. On earnings they rank fifth of thirteen, at 2.66x. The comparisons buyers ask about: the median grocery store earns 61.0 percent more than the median convenience store and sells for 85.7 percent more. The median liquor store earns 22.0 percent less than a grocery store and sells for 9.0 percent more, because a quota license protects its earnings. A pharmacy of similar revenue earns 22.0 percent less and sells for 16.7 percent less.
| Retail category | Median revenue | Avg revenue multiple | Median SDE | Avg SDE multiple | Owner margin | Median sale | Median ask | Sale/ask |
|---|---|---|---|---|---|---|---|---|
| All retail businesses | $720,000 | 0.53x | $131,498 | 2.62x | 18.3% | $295,000 | $305,000 | 0.95 |
| Liquor stores | $1,047,000 | 0.50x | $150,000 | 3.33x | 14.3% | $425,000 | $444,500 | 0.97 |
| Nursery and garden centers | $1,021,316 | 0.68x | $204,361 | 3.11x | 20.0% | $560,000 | $537,500 | 1.05 |
| Pharmacies | $1,334,270 | 0.42x | $150,000 | 2.79x | 11.2% | $325,000 | $399,000 | 0.89 |
| Furniture and furnishings stores | $1,072,815 | 0.57x | $200,000 | 2.72x | 18.6% | $465,000 | $450,000 | 1.03 |
| Grocery stores and supermarkets | $1,380,000 | 0.35x | $192,408 | 2.66x | 13.9% | $390,000 | $429,000 | 0.98 |
| Bike shops | $627,422 | 0.45x | $118,848 | 2.62x | 18.9% | $240,123 | $249,847 | 0.98 |
| Health food and nutrition businesses | $492,798 | 0.58x | $100,000 | 2.51x | 20.3% | $200,000 | $200,000 | 0.98 |
| Convenience stores | $660,500 | 0.40x | $119,495 | 2.39x | 18.1% | $210,000 | $225,000 | 0.92 |
| Vending machine businesses | $71,000 | 1.16x | $39,601 | 2.35x | 55.8% | $83,500 | $88,498 | 0.93 |
| Clothing and accessory stores | $500,000 | 0.52x | $103,668 | 2.30x | 20.7% | $200,000 | $249,000 | 0.95 |
| Jewelry stores | $463,061 | 0.61x | $131,207 | 2.05x | 28.3% | $214,757 | $292,000 | 0.88 |
| Flower shops | $478,290 | 0.47x | $106,066 | 2.01x | 22.2% | $189,000 | $219,000 | 0.91 |
| Smoke shops | $420,000 | 0.47x | $100,000 | 1.98x | 23.8% | $150,000 | $150,000 | 0.93 |
Source: BizBuySell retail valuation benchmarks, businesses sold 2021 to 2025, read September 2026. Every column except owner margin is published. Owner margin is computed here as median SDE divided by median revenue.
The margin column is the whole story. At 13.9 percent, grocery has the second thinnest owner margin in retail after pharmacies, against 18.3 percent for all retail. Buyers pay a middle-of-the-range multiple for earnings that depend on a thin spread between a large revenue line and a large cost line. A seller who can show stable margin by department, low shrink and a customer base that is not shopping on price alone is the one who gets paid above the median.
Find your row
10What a grocery store is worth at each level of owner earnings
The first three columns apply the sold lower quartile, median and upper quartile multiples to each earnings level. The fourth is the SBA-supportable price at an $80,000 owner draw with no inventory on the loan, which tells you whether a financed buyer can actually reach the market price for a store that size.
| Seller discretionary earnings | At 1.60x (lower quartile) | At 2.25x (median) | At 3.15x (upper quartile) | SBA capacity at an $80,000 draw |
|---|---|---|---|---|
| $115,000 (lower quartile sold) | $184,000 | $258,750 | $362,250 | $192,136 |
| $192,408 (median sold) | $307,853 | $432,918 | $606,085 | $617,076 |
| $226,854 (2025 median sold) | $362,966 | $510,422 | $714,590 | $806,171 |
| $360,000 (upper quartile sold) | $576,000 | $810,000 | $1,134,000 | $1,537,091 |
| $500,000 | $800,000 | $1,125,000 | $1,575,000 | $2,305,637 |
Computed here. Business value before inventory, which is normally counted and paid for separately at cost. SBA column on the same terms as section 02. Illustrative arithmetic, not a loan offer.
Read the last column against the others. At the lower quartile, $115,000 of earnings supports $192,136 at an $80,000 draw, just above the $184,000 the lower quartile multiple implies and well below the median multiple. That is where financing binds, and why small grocers sell near 1.6x, often to a family that takes a smaller salary. From the median up, financing capacity runs ahead of even the upper quartile price, so what separates stores is margin and risk, not the bank.
Methods
11The five ways a grocery store gets valued
You will meet all five in a grocery store sale, and they will not agree. Knowing which one the other side is using is most of the negotiation.
Seller discretionary earnings multiple
The primary method for an owner-operated grocery store. Normalized SDE times a multiple between about 1.60x and 3.15x, which is where half of all grocery store sales landed. It is the method a lender checks, because SDE is what services the acquisition debt.
Revenue multiple
A cross-check. Sold grocery stores traded at a median 0.29x revenue, in a 0.20x to 0.41x band. Because grocery margins are thin, two stores with the same sales can earn very different amounts, so a revenue multiple should never set the price on its own.
Inventory at cost, on top
Shelf, cooler and freezer stock is normally counted on the closing date by an independent inventory service and paid for at cost, in addition to the business price. Perishables that are out of date or unsaleable are excluded. Whether a reported sale price includes inventory varies by listing, so confirm it on every comparable and every offer.
Asset value
The floor. Refrigerated cases, walk-in coolers and freezers, meat room equipment, shelving, checkout lanes and the point of sale system at depreciated value, plus inventory. A store whose earnings will not support a loan sells near this floor.
Real estate, priced separately
When the building is part of the sale, the property is appraised on its own and the business is priced on its earnings after a market rent. The benchmarks on this page describe the business, and most independent grocery stores in the record operate on a lease.
Value drivers
12What moves a grocery store between the quartiles
The distance between the lower and upper quartile multiple is 1.60x to 3.15x, which on $192,408 of earnings is the difference between $307,853 and $606,085. These are the factors that decide where a specific store lands.
Sales volume
BizBuySell states that a grocery store consistently generating sales over $3 million a year may sell for an earnings multiple close to 3.15, while a smaller store with sales of $800,000 would likely sell closer to 1.6. The upper quartile of sold revenue was $3,000,000 and the lower quartile $720,000, so those thresholds sit on the quartile edges.
Margin and shrink
At a 13.9 percent owner margin on median revenue, each point of margin is $13,800 of owner earnings, or 7.2 percent of the median SDE. Spoilage, theft and markdowns in produce, meat and dairy move margin by more than that in a bad year. Ask for gross margin by department and the shrink reports before you agree a multiple.
Fresh departments
A butcher counter, a hot food bar or a bakery can carry the store, or lose money on waste. Check which departments earn their space. A store whose fresh departments run on the owner's own skill is worth less to a buyer who cannot replace it, and section 04 prices that.
Specialty and ethnic focus
BizBuySell notes that most stores in the record are independent and many specialize in ethnic or dietary categories. A loyal specialty customer base defends a small store against chain competition better than a general assortment does, and it is the most common reason a small store sells above its size band.
Equipment age
Refrigeration is the largest capital item in the store. Old compressors and open cases mean repair bills, higher power costs and, for a new owner, a harder health inspection. Get the age of every case and walk-in, and price replacements that fall due in the first years.
WIC, SNAP and compliance history
Neither authorization transfers. A store with a SNAP or WIC violation history is worth less, and a disqualification carries a civil money penalty to the seller if the store is sold before it runs out.
Lease, location and competition
Remaining term, renewal options, parking and the distance to the nearest chain supermarket or discount grocer are the location value. A new discount grocer nearby is the fastest way for an independent store to lose sales.
Questions
Grocery store valuation questions, answered against the sold record
How much is a grocery store worth?
The median US independent grocery store sold over the five years 2021 to 2025 went for $390,000, on median revenue of $1,380,000 and median owner earnings of $192,408. That is 2.03 times owner earnings on the reported medians. The published median multiple is 2.25x and half of all grocery stores sold between 1.60x and 3.15x owner earnings, usually before inventory.
How much is my grocery store worth?
Work out your seller discretionary earnings first, then find your row. A store at the lower quartile of $115,000 is worth roughly $184,000 to $362,000 on the sold multiples; at the median $192,408, roughly $308,000 to $606,000; at the upper quartile of $360,000, roughly $576,000 to $1,134,000. Inventory is normally counted and paid for on top.
What is the multiple for a grocery store?
Grocery stores sold at a median of 2.25 times seller discretionary earnings and an average of 2.66 times, with a lower quartile of 1.60x and an upper quartile of 3.15x. On revenue the median was 0.29x and the average 0.35x. The yearly average earnings multiple rose from 2.29x in 2021 to 3.38x in 2025.
How do you value a grocery store?
Start from normalized seller discretionary earnings: net profit plus owner salary, owner benefits, interest, depreciation and one-time costs. Adjust for the work the owner does that a buyer would have to pay for, such as running the meat counter. Apply a multiple between about 1.60x and 3.15x based on sales volume and margin, then add inventory at cost on the closing date.
How do you value a supermarket?
The same way as a grocery store, with the weight on sales volume. BizBuySell ties the upper end of the range, close to 3.15x earnings, to stores with sales above $3 million, which is where most small supermarkets sit. Larger chains and multi-store groups are valued on EBITDA by private equity and strategic buyers, outside the range on this page.
What percentage of sales is a grocery store worth?
Sold grocery stores traded at a median 0.29 times annual revenue, or 29 percent of sales, with a lower quartile of 20 percent and an upper quartile of 41 percent. That is the lowest average revenue multiple of the thirteen retail categories in the comparison, because grocery margins are the second thinnest. Treat it as a cross-check, not as the price.
How much does a grocery store make a year?
The middle grocery store that sold reported $192,408 of seller discretionary earnings on $1,380,000 of revenue, a 13.9 percent owner margin. The lower quartile earned $115,000 and the upper quartile $360,000. Margins fell from 17.4 percent in 2021 to 11.7 percent in 2024, then recovered to about 13.7 percent in 2025.
Is a grocery store a good investment?
At the median it is priced low against its earnings: $192,408 of owner earnings against a $390,000 price is 2.03x. The catch is the margin. On 13.9 percent, a two point drop from a new competitor or higher shrink takes $27,600 off the owner's earnings. Stores with specialty customers and modern refrigeration hold their margin best.
Do grocery stores sell for the asking price?
Closer than most retail. The published average sale to ask ratio is 0.98, and in 2024 and 2025 the yearly average was above 1, at 1.06 and 1.04, so buyers paid more than asking on average. The ratio of the five-year medians is lower, $390,000 against $429,000, or 0.91.
How long does it take to sell a grocery store?
The median grocery store that sold spent 177 days on the market, falling from 198 days in 2021 to 155 days in 2025. That counts only stores that sold. WIC and SNAP authorizations for the buyer, the health permit and the beer and wine license are the items most likely to stretch a closing after the price is agreed.
Can you get an SBA loan to buy a grocery store?
Yes, and at the median the financing has room to spare. At 10 years, 10.5 percent, 1.25x coverage and 10 percent down, $192,408 of owner earnings supports about $617,000 if the buyer draws $80,000 a year. The median store sells for $390,000. Even with $200,000 of inventory on the same loan, capacity is about $417,000.
How much does a grocery store valuation cost?
A formal business valuation commonly runs $1,500 to $8,000 for a calculation engagement and $5,000 to $15,000 for a full conclusion of value. On a $390,000 grocery store that is 0.4 to 2.1 percent of the sale price for a calculation and 1.3 to 3.8 percent for a full report.
Asked another way
What grocery store owners and buyers ask when they are deciding
These come up once the numbers are understood and the decision is the real problem, whether that is making an offer, reading a listing or choosing when to sell. Answered against the same closed-transaction data as the rest of this page.
Is a grocery store listed at 4x cash flow overpriced?
Almost always. 3.15x is the upper quartile of grocery stores that sold, so fewer than a quarter closed above it, and BizBuySell ties that end of the range to stores with more than $3 million of sales. Listed stores ask a median 2.88x and an average 4.20x, but the sold median is 2.25x.
Should I trust the earnings in a grocery store listing?
Check them against the tax returns and the point of sale reports by department. Listed stores report median owner earnings of $233,000, 21.1 percent above the $192,408 of stores that sold, on 18.9 percent more revenue. Ask how many family members work unpaid and whether the owner cuts the meat.
Why did grocery store prices jump in 2025?
The median 2025 sale was $840,000, against $290,000 in 2024, while median earnings rose 65 percent. That price is 3.70 times the 2025 median earnings, above the five-year upper quartile of 3.15x, so it points to more large stores selling that year, not every store being worth more. Price a typical store from the five-year quartiles.
Why do grocery stores sell for more than convenience stores?
The median grocery store earns $192,408 and sold for $390,000; the median convenience store earns $119,495 and sold for $210,000. That is 61.0 percent more earnings for 85.7 percent more price. Grocery earnings rest less on the owner's counter hours and more on the store's sales, which buyers pay a little more for.
Do I need a formal appraisal or is an estimate enough?
An estimate is enough to decide whether to list, to set an asking range, or to decide whether a listing deserves an offer. A formal appraisal becomes necessary for an SBA loan above the lender threshold, a partner buyout, estate or gift tax filings and litigation. This page and the estimator on it are benchmarks against closed sales, not a certified appraisal.
Benchmarks behind the estimate
Find out where in the range a grocery store sits
Enter revenue and owner earnings, for your own store or for a listing you are considering, and read a value range against real grocery store sales. An educational estimate, not a certified appraisal.