What it costs to buy a cafe in Australia
Cafes are the most bought and sold business in the country, and the most mispriced by first-time buyers. Here is how the market actually values them, and the two words that should drive every offer: the lease.
What cafes sell for
| Owner earnings (SDE) | Typical price | Multiple |
|---|---|---|
| $50,000 to $100,000 | $75,000 to $200,000 | 1.5 to 2x |
| $100,000 to $200,000 | $180,000 to $400,000 | 1.8 to 2.2x |
| $200,000 to $400,000 | $350,000 to $800,000 | 1.75 to 2.5x |
Most cafes change hands between $100,000 and $450,000. The market prices on seller's discretionary earnings, what the owner actually takes home, cross-checked at 0.3 to 0.6 times annual turnover. Listings shout weekly turnover; buyers should read earnings after a real wage for the hours the owner works.
WIWO versus going concern
Walk-in-walk-out means you are buying a fitted site, not a business: no goodwill, no books that matter, priced at fitout value, real examples run from $35,000 for a fitted takeaway site to $80,000 for a fitted inner-city restaurant shell. That can be a bargain for an operator with their own concept, and a trap for a buyer who thinks trade comes with the keys. A going concern with provable earnings costs multiples more because it is worth multiples more.
The lease decides everything
The broker consensus is blunt: without a transferable lease with real runway, there is no business to sell. Buyers want three to five plus years remaining and rent under 10% of revenue, tolerating a little more only on premium sites. Assignment needs the landlord's consent, so start that conversation before you fall in love.
Financing a cafe purchase
Equipment in the sale, machines, kitchen, fitout, can write on asset finance, and provable earnings support goodwill lending; the gap is commonly carried by buyer equity or property backing at roughly 6% to 9% p.a. as a working rule. New operators buying WIWO sites are effectively startup borrowers, see the new-ABN guide. Start at business acquisition finance.
Frequently asked questions
How much does a cafe cost to buy in Australia?
Typically $100,000 to $450,000, priced at 1.5 to 2.5 times the owner's actual earnings, cross-checked at 0.3 to 0.6 times annual turnover.
What does WIWO mean when buying a cafe?
Walk-in-walk-out: a fitted site with no goodwill and no trading business attached, priced at fitout value, real examples from $35,000. Good for operators with their own concept, dangerous for buyers expecting trade.
What lease terms matter when buying a cafe?
Three to five plus years remaining including options, rent under about 10% of revenue, and landlord consent to assign the lease, without which there is no deal.
Can I finance a cafe purchase?
Yes: the equipment writes on asset finance, provable earnings support goodwill lending, and buyer equity or property backing carries the rest.
Earnings, lease, then the offer
Tell us the cafe and the books and we will come back with what is fundable and at what structure, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.