What’s a Convenience Store Worth in 2025?

Why 2.5x Might Be Too High (And What Buyers Really Pay)

Convenience stores are everywhere in Australia—corner shops, small grocers, late-night outlets, and franchise kiosks. But when it comes time to sell one, the question is simple:

What’s it worth?

The answer? Not as much as many sellers hope—at least not if you’re measuring it by real-world buyer behavior in 2024–2025.

🔹 Typical Valuation:

1.5x to 2.2x EBITDA goodwill, plus stock

➡️ Effective deal size: 2.0x to 2.8x EBITDA

Most convenience store sales follow a simple formula:

Sale Price = Goodwill (based on EBITDA) + Stock at Cost

But the goodwill multiple is where things get real. Based on recent market trends:

1.5x–1.8x is common for owner-operated stores

2.0x–2.2x is achievable for stronger operations with good systems, margins, and location

2.3x+ is rare and usually signals a unicorn (e.g. franchise site under management with strong margins and lease)

🧾 Let’s Break That Down

Example:

EBITDA: $160,000

Multiple (Goodwill): 1.9x = $304,000

Stock: $70,000

✅ Total Price: $374,000

📉 Effective Price = 2.34x EBITDA

That’s already pushing the edge. Most buyers will apply a "breakeven test":

(Goodwill + Stock) ÷ Net Profit = Years to Recover Investment

If breakeven stretches beyond 3.5–4 years, the price will come under pressure—or the deal dies.

❌ Why 2.5x EBITDA Goodwill Is Rare

Despite hopes (or broker marketing), most convenience stores don’t justify a 2.5x+ goodwill multiple. Here's why:

Limiting Factor Buyer Impact

Small EBITDA base Harder to scale, longer payback

Owner-reliant operations Not attractive to investors or managers

Rent often >7% of sales Profitability drag

Shrinking tobacco margins Erodes total profitability

Short lease or CPI escalators Reduces long-term security

✅ When You Might Get 2.3x–2.5x Goodwill

You’ll need all of the following:

📍 Prime location (transport hub, fuel, CBD foot traffic)

🔒 Secure lease, with rent <5% of turnover

🔁 Weekly sales > $35K with strong repeat traffic

🍔 Food or coffee service with margins >40%

👥 Staff-run operation with minimal owner hours

📊 Clean financials, tax-aligned, with high gross margin (>30%)

And even then, the buyer pool is narrow—it’s likely a strategic buyer or franchisee.

📦 Don’t Ignore Stock

Stock is always extra. It’s usually:

$50K–$120K for a typical C-store

Often includes high-value but low-margin tobacco

Sometimes overstocked, which can raise concerns

If stock turnover is poor or there's excess inventory, expect discounts or working capital negotiations.

💬 Final Thoughts

Reality check: If your convenience store is being priced at 2.5x EBITDA goodwill, buyers will expect near-perfect fundamentals—or they’ll walk. Most deals settle at:

1.6x to 2.0x goodwill + stock, for an effective total of ~2.5x EBITDA

If you’re preparing to sell:

Keep rent lean

Cut dead stock

Clean up your financials

Benchmark your breakeven years

And remember: hope is not a multiple. Buyers care about cashflow, payback, and risk. Hit those, and the rest will follow.