--- title: "Cafe, Restaurant, Bar and Pub Valuations in Sydney" url: https://businessvaluationssydney.com.au/industries/hospitality/ description: "How a Sydney cafe, restaurant, bar or pub is valued: the lease, the NSW liquor licence transfer, wages, cash records and the method that fits." updated: 2026-11-15 --- # A Sydney cafe, bar or pub is worth what its lease and licence let it earn. Takings alone say little about what a venue is worth. The years left on the lease, the liquor licence, the wage bill and the quality of the records decide what a buyer will pay. Get my fixed fee[Every industry](https://businessvaluationssydney.com.au/industries/) - $1,495 + GST The fixed fee where turnover is below $2 million, put in writing before we begin - 2 business days From payment and complete information to a signed small-business report - 32 York St Our Sydney office, in the CBD. Most of the work is done from your documents and a call - 10 years How long the working file behind each report is kept Delivery time starts once payment and all required information have been received. A cafe, restaurant, bar or pub in Sydney is valued on what a new owner could expect to earn, after paying staff for the hours the present owner works and rent on the terms the lease gives. A valuer checks takings against till, card and supplier records before relying on them. In New South Wales a liquor licence does not pass to a buyer automatically: its transfer has to be applied for and approved. Where the premises are held under a retail lease, the tenant has to ask the landlord in writing for consent to assign it. ## What is a buyer of a cafe, bar or pub really paying for? The fit-out and the equipment are the small part. A buyer pays for a site that already draws customers, a lease that holds the site long enough to earn the price back, and a licence to trade the way the venue trades now. Without the lease or the licence, what is left is second-hand kitchen equipment. The signed report is $1,495 + GST where turnover is below $2 million, ready in 2 business days, and $2,495 + GST from $2 million to $3 million, ready in 3 business days. Delivery time starts once payment and all required information have been received. Get my fixed fee[See every fee](https://businessvaluationssydney.com.au/fees/) ## In New South Wales the liquor licence has to be transferred, and a retail lease assigned with consent. Liquor licences are granted under the Liquor Act 2007 (NSW), and a licence does not move to a buyer just because the business has been sold. A transfer has to be applied for and is approved by the Independent Liquor & Gaming Authority, or by Liquor & Gaming NSW staff under its delegation. Liquor & Gaming NSW says a transfer has no effect until provisional approval has been given. Food comes under a different rule. Cafes, restaurants and other retail food businesses must notify their local council of their business and food activity details before they start trading, and the NSW Food Authority says a buyer of an existing business notifies again with their own details. For a retail lease, the NSW Small Business Commissioner says the tenant must ask the landlord in writing for consent to assign it. Whether a venue's lease is a retail lease is a question for a lawyer. ## Wages, cash and the owner's hours are what a valuer adjusts first. Many owners work long shifts for little or no wage, which flatters the profit in the accounts. A valuer adds the cost of staff to cover those hours at rates a new owner would have to pay, then tests the other figures. - Takings tied back to till reports and the bank - Food and drink costs compared with supplier invoices and stock on hand - One-off costs, such as a refit or an opening period - Rent restated to a market figure where the venue owns its building ## Which valuation method fits a cafe, a bar or a pub? Capitalised earnings fits a venue with a steady record, using a rate that reflects how secure the lease and licence are. A venue that is losing money or near the end of its lease is worth little more than its equipment and stock would fetch. Where a pub owns its freehold, the land and buildings are valued separately, by a property valuer in New South Wales, and the business is valued as though it paid a market rent. ## Hospitality: questions we are asked. ### How quickly is a liquor licence transfer approved in NSW? Liquor & Gaming NSW says provisional approval is usually given within ten business days of a complete application, and is confirmed about 60 days later if there are no objections. It also says the business can keep trading while the application is assessed. A valuer notes where the transfer stands at the valuation date. ### How are gaming machines treated when a NSW pub is valued? They are counted and looked at separately from the bar and kitchen trade. Gaming machines in NSW hotels and clubs are regulated under the Gaming Machines Act 2001 (NSW), and a venue needs an entitlement or a permit for each machine, up to its gaming machine threshold. Liquor & Gaming NSW says moving entitlements between venues generally means one is forfeited in every block of two or three transferred. ### Can a valuation count cash takings that are not in the books? No. A valuer counts the income the records support, because a buyer, a lender or the other side of a negotiation will ask for the same proof. Takings are checked against point-of-sale reports, card settlements, bank deposits and tax returns. Where records are thin, the report says what was relied on and the value reflects the doubt. ### How much does the lease matter when a Sydney restaurant is valued? A great deal, because the profit lasts as long as the right to trade from the site. A valuer reads the lease for the years left, the rent and how it rises, and whether the landlord can relocate the venue or redevelop. For a retail lease, the NSW Small Business Commissioner says the landlord must respond to a request to assign within 28 days of receiving all the information. Other industries - [Valuing a retail or online business in Sydney](https://businessvaluationssydney.com.au/industries/retail-and-online/) - [Valuing a childcare centre in Sydney](https://businessvaluationssydney.com.au/industries/childcare-centres/) ## Where the rules on this page come from This page describes the rules in general terms. It is not legal, tax or duty advice: your lawyer or accountant advises on how a rule applies to you. - [Transfer a liquor licence](https://www.nsw.gov.au/business-and-economy/liquor-and-gaming/liquor-licensing/apply-manage/transfer), Liquor & Gaming NSW - [Regulatory Delegations Manual, September 2026](https://www.ilga.nsw.gov.au/sites/default/files/2026-09/ILGA-Regulatory-Delegations-Manual-September-2026.pdf), Independent Liquor & Gaming Authority - [Who we are](https://www.ilga.nsw.gov.au/about-us/who-we-are), Independent Liquor & Gaming Authority - [What we do, including the Liquor Act 2007](https://www.ilga.nsw.gov.au/about-us/what-we-do), Independent Liquor & Gaming Authority - [Gaming machine entitlements and permits](https://www.nsw.gov.au/business-and-economy/liquor-and-gaming/gaming/gaming-machines/machine-entitlements-permits), Liquor & Gaming NSW - [Starting a food business](https://www.foodauthority.nsw.gov.au/industry/starting-a-food-business), NSW Food Authority - [Licensing and notifying](https://www.foodauthority.nsw.gov.au/industry/licensing), NSW Food Authority - [Transferring your lease](https://www.smallbusiness.nsw.gov.au/help/common-questions/transferring-your-lease), NSW Small Business Commissioner Ask a valuer ## Tell us about the business. A few lines is enough. A valuer replies within one business day with the package that fits, your fixed fee in writing and a delivery date. Small Business Valuation $1,495 + GST The package for turnover below $2 million: a signed report in 2 business days. Delivery time starts once payment and all required information have been received. Larger than that? The fee steps up with turnover. [See every fee](https://businessvaluationssydney.com.au/fees/) Page last reviewed on 15 November 2026. Business Valuations Sydney, 32 York Street, Sydney NSW 2000. --- Business Valuations Sydney · 32 York Street, Sydney NSW 2000 · https://businessvaluationssydney.com.au/start/