The Q2 2025 BizBuySell Insight Report paints a challenging picture for the business-for-sale market. Overall transactions fell 4% year-over-year and 1% quarter-over-quarter. The restaurant sector faced even steeper declines, with general business brokers reporting a 16% drop in restaurant sales year-over-year.
For general business brokers, these headwinds translated into fewer completed transactions and longer time on market. In sharp contrast, We Sell Restaurants delivered a standout performance—posting 15.5% growth in restaurant sales year-over-year, outpacing the industry average by 31.5 percentage points.
According to the recently published data, brokers attribute the slowdown to tighter SBA lending rules, combined with tariffs and inflation, which added layers of complexity that slowed deal activity nationwide. Robin Gagnon, CEO of We Sell Restaurants, said of the results, “We disagree that tariffs and inflation are continuing to place outsized pressure on restaurant deals. We see tariffs having very little impact and inflationary pressure cooling significantly for food pricing. More importantly, today’s sophisticated restaurant buyer is focusing on actual results for the business they are buying more than headlines about perceived impact.”
The Big Picture: Industry Performance vs. Our Results
According to BizBuySell:
- Overall Business Sales: Down 4% year-over-year
- Restaurant Sales: Down 16% year-over-year
- Manufacturing: Down 28% (largest sector decline)
- Retail: Up 2%
- Service Businesses: Up 7%
Meanwhile:
- We Sell Restaurants: Up 15.5% in closed transactions during the same period
This means that while general business brokers saw overall deal activity decline, and restaurant specialists slowed down, We Sell Restaurants surged ahead. Our results not only beat the restaurant sector trend by 31.5 points, but we also outperformed the entire business-for-sale market, which contracted across most segments.
Why the National Market Stumbled
Several factors shaped the Q2 decline across all brokerages that reported according to the latest findings by BizBuySell though these were not consistent with findings at the nation’s number one restaurant brokerage business.
BizBuySell cited the following issues:
- BizBuySell Says: Tariffs & Inflation: Higher costs for imported goods and persistent inflation impacted profitability, making valuations more difficult and reducing buyer confidence.
- We Sell Restuarants responds: A rough estimate suggests that no more than 20% to 30% of food served in U.S. restaurants is sourced internationally, with higher percentages in seafood-heavy or specialty cuisine restaurant and lower in farm-to-table or fast-food chains. Thus, tariffs are having minimum impact on restaurants. Trade deals continue to be announced that provide favourable outcomes for the U.S. economy.
- BizBuySell Says: Stricter SBA Lending: New rules now require buyers to contribute more cash and limit the use of seller financing for equity injection. This created friction in deal-making, with 41% of brokers reporting delays due to SBA rule changes.
- We Sell Restaurants responds: The change to the SBA rules were announced early in first quarter, providing our Certified Restaurant Brokers® with plenty of time to work through these changes with buyers and sellers rather than having them delay or disrupt deals. We did have one deal lost in the second quarter, specifically due to the change in lending but this was a seller who was simply looking to raise his selling price and used a very small change in deal terms from the SBA to leverage a refusal to come to closing on the contract.
- BizBuySell Says: Buyer Hesitation: 73% of buyers are focusing on recession-resistant businesses. Restaurants, with rising food costs and tariff exposure, faced extra scrutiny.
- We Sell Restaurants responds: While many brokers continue to chase a “recession-resistant” business model, the fact remains that every human needs to eat. A 2024 TouchBistro report, indicates 42% of consumers dining out at least once a week. While customers adjust eating habits, their share of wallet for dining rarely shifts with economic uncertainty. While they may trade down from full service to fast casual, they will not forego the dining experience altogether.
- BizBuySell Says: Inventory Gap: Many baby boomer owners remain on the sidelines, limiting quality listings and creating competition for top-performing businesses.
- We Sell Restaurants responds: Baby boomers, born between 1946 and 1964, started turning 65 in 2011. This trend continues through 2029. While we agree that same baby boomers went on the sidelines during the pandemic, we see no slowdown in good inventory on the market and currently have nearly $550 million in listing inventory available online at our powerhouse restaurant for sale marketplace.
What BizBuySell did not allude to in its report is the most significant impact on the industry and that is the impact of the current administration’s immigration policy on the restaurant industry. There have been multiple restaurant locations subjected to raids though in each instance we have seen, the restaurant owners were involved in illegal activity beyond that of simply hiring those without a legal immigration status. The long-term implications of potential higher labor costs and substituting legal Americans in these jobs may create larger issues overall. However, weekly, operators are deploying technology including AI voice at drive throughs and other technology to reduce reliance on labor.
Restaurants in the Spotlight
The BizBuySell report underscores the unique challenges facing the restaurant sector. Despite a 16% year-over-year drop in acquisitions, the median sale price for restaurants rose 3%, and median revenue grew 6%, reflecting sustained consumer demand for dining out. However, profitability remains under pressure, with median cash flow declining 8% due to tighter margins from rising food and labor costs.
Despite these pressures, We Sell Restaurants continued to close deals and grow market share. Our ability to navigate SBA financing changes, present fact-based valuations, and attract qualified buyers kept transactions moving while others slowed. While BizBuySell stated a median sales price gain of 3%, We Sell Restaurants, again outperformed with transactions in second quarter reflecting a selling price 4% ahead of last year.
Why We Sell Restaurants Outperformed
The We Sell Restaurants success in Q2 2025 stems from a combination of specialized expertise, robust systems, and a deep understanding of the restaurant industry. Here’s what sets us apart:
- Specialization: Unlike general brokers, we focus exclusively on restaurants. Our brokers are trained to handle industry-specific complexities, such as liquor license transfers, franchise agreements, and lease negotiations, ensuring smoother transactions.
- National Buyer Network: Our database of thousands of active, pre-qualified buyers allows us to match listings with serious prospects quickly, reducing time on market.
- Proven Marketing System: Our multi-channel marketing strategy—spanning digital platforms, social media, and targeted outreach—maximizes exposure and provides buyers with comprehensive, transparent information to facilitate faster decisions.
- Financing Expertise: We collaborate with SBA-preferred lenders and craft creative financing solutions to meet stricter equity and compliance requirements, helping buyers and sellers overcome lending obstacles.
- Franchise Resale Leadership: As the leading broker for franchise restaurant resales, we work closely with franchisors and owners to ensure seamless transitions that maintain brand standards and operational continuity.
- Data-Driven Valuations: Our proprietary valuation tools leverage real-time market data and industry benchmarks, enabling sellers to price competitively and buyers to make informed offers.
Additional Insights: What’s Driving Our Success
Beyond the factors above, several strategic advantages have fueled the We Sell Restaurants growth:
- Adaptability to Market Shifts: While tariffs and inflation have disrupted supply chains, our team proactively advises sellers on cost management strategies, such as menu optimization and supplier negotiations, to maintain profitability and appeal to buyers.
- Technology Integration: Our investment in technology, including AI-driven lead scoring and automated marketing workflows, ensures we reach the right buyers at the right time, streamlining the sales process.
- Educational Resources: We empower buyers and sellers with educational content, such as e-books and market reports, to demystify the sales process and build confidence in a volatile market.
- Regional Expertise: Our brokers’ deep knowledge of local markets allows us to tailor strategies to regional dining trends, whether it’s fast-casual in urban areas or family-style restaurants in suburban markets.
The Bottom Line
While general business brokers grapple with declining transactions and stricter lending requirements, We Sell Restaurants is setting new benchmarks for success. Our 15.5% transaction increase—against a national backdrop of declines—demonstrates the power of industry specialization, strategic systems, and a relentless focus on client success. In a market where restaurant sales fell 16% for others, our ability to grow by 15.5% underscores the value we bring to buyers and sellers.
Looking Ahead
The U.S. economy is still in a scenario where there is, despite robust economic gains, persistent skepticism, driven by the media. Some are calling this the “most hated rally in history.” For those ignoring the headlines, real people, operating and acquiring real businesses are experiencing something entirely different.
On that upbeat note, here are ten economic reasons that restaurant buyers and sellers will continue to transact this year.
- Buyers are holding stock market portfolios reflecting the highest pricing in history.
- The Tariff pundits have all been proven wrong and even those against tariffs are seeing them delivery net gains to the trade deficit for two consecutive months.
- There are multiple huge deals on the table for tariffs, including the most recent, announced on July 26 with the EU. At least 50 countries are in negotiation for deals.
- There are trillions of dollars committed to investment in the U.S. that has not yet been factored into the overall economic growth.
- There is $7 trillion dollars of capital sitting on the sidelines and waiting for deployment. When that capital goes into the market and start making acquisitions, this will trickle down to the average investor.
- Despite every negative pundit’s effort, inflation continues to cool, not heat up and prices are dropping. The consumer feels this, and the restaurant operator knows it happening on everything from eggs to protein.
- The One Big Beautiful Bill has several elements that will unleash growth including deregulation and a push for more energy creation in the U.S.
- The Federal Reserve and its Chair, Jerome Powell, has stubbornly refused to adjust interest rates despite every reason to do so. His latest embarrassment over the cost overruns at the Fed headquarters may finally move the needle but the average investor knows these rates are artificially high, are factoring them in and are not worried about them increasing.
- Consumer Confidence hit a high in May after the China trade deal was announced and is lower today but it is lagging business confidence. The NFIT Small Business Optimism Index was at 98.6 in June of 2025 slightly above the 51-year average of 98. Small business owners are confident that we are heading in the right direction.
- Real GDP increased at a 3.0% annual rate in Q2, beating expectations of 2.6%. The increase was driven by rising consumer spending and net exports.
For these ten reasons, We Sell Restaurants remains bullish on the economy and the small restaurant sales environment for the balance of the year.
If you’re thinking about selling your restaurant—or buying one—partner with the brand that continues to outperform the market.