Catering companies in Illinois are valued at 1.5x to 3x SDE, with higher multiples for businesses with recurring corporate catering accounts and lower multiples for event-only caterers dependent on seasonal wedding and party business. Visibility of forward bookings is a key differentiator.
Corporate vs. Event Catering
Corporate catering — daily office lunch programs, recurring business meeting catering — generates weekly recurring revenue from established accounts. Event catering (weddings, corporate events, social functions) generates higher revenue per event but is non-recurring, seasonal, and dependent on the sales pipeline. Mixed-model businesses trade at premiums when corporate revenue provides a stable revenue floor.
Licensed Commercial Kitchen
Whether the business owns or leases a licensed commercial kitchen is a critical factor. Kitchen ownership adds asset value; a long-term favorable kitchen lease is nearly as good. Businesses operating from home kitchens or using shared commercial kitchen space have more operational complexity and lower buyer appeal.
Illinois Department of Public Health food service licensing is site-specific and requires new licensure under new ownership in most cases. This should be confirmed and planned for early in the sale process to avoid post-closing operational gaps.