How to Sell a Restaurant in Tennessee: Nashville, Memphis, Knoxville & Chattanooga

Tennessee has become one of the most exciting restaurant markets in the country, led by Nashville's extraordinary growth. With no state income tax, heavy tourism, and strong in-migration, buyer demand is healthy across the state. If you own a restaurant in Tennessee and you're thinking about selling, here's what it's worth, how the process works, and how to reach the right buyer.

What Is Your Tennessee Restaurant Worth?

Most profitable independent restaurants sell for a multiple of SDE (seller's discretionary earnings — net profit plus the owner's salary and add-backs), generally in the 1.5×–3× SDE range, with strong operations in high-demand markets like Nashville pushing toward the higher end. The multiple is driven by clean, provable books, a long assignable lease at a workable rent (critical in booming downtown areas), location, whether real estate is included, and turnkey condition. See our restaurant valuation guide, and how selling clears back taxes if that's in play.

The Tennessee Market, Region by Region

Nashville

The headline market — downtown/Broadway, East Nashville, The Gulch, Germantown, and 12 South all draw intense buyer interest. Tourism and population growth have been remarkable, but downtown rents have climbed just as fast, so buyers underwrite the lease hard. A strong lease is often as valuable as the business itself here.

Memphis

A deep-rooted food city (barbecue capital, Beale Street, the revitalized Overton Square and Cooper-Young districts) with more affordable buy-ins than Nashville and loyal local demand.

Knoxville

Anchored by the University of Tennessee and a lively Market Square/downtown scene, Knoxville is a steady, growing market that appeals to owner-operators.

Chattanooga & Franklin

Chattanooga's revitalized downtown and riverfront have made it a genuine food destination, while affluent Franklin (south of Nashville) supports strong suburban restaurants.

How a Restaurant Sale Works in Tennessee

1. Get a realistic valuation — overpricing is the top reason a listing stalls, even in a hot market like Nashville.
2. Organize your package — two to three years of tax returns and P&Ls, the lease, an equipment list, and a clear reason for selling.
3. List where restaurant buyers look — a hospitality-specific marketplace, not generic classifieds.
4. Sell confidentially if you don't want staff or regulars to know — here's how.
5. Handle the Tennessee specifics at closing: assign the lease, register for sales tax with the Tennessee Department of Revenue, transfer local health permits, and address alcohol. Liquor-by-the-drink licenses run through the Tennessee Alcoholic Beverage Commission (TABC) while beer permits are issued by local beer boards — these generally don't transfer automatically, so the buyer applies. A closing attorney and your accountant coordinate it.

See our full guide to selling a restaurant for the step-by-step.

What Tennessee Buyers Want

• Clean, verifiable numbers.
• An assignable lease with real term left — essential in downtown Nashville.
• A turnkey kitchen and dining room.
• Alcohol licensing in order.
• A reason for selling that makes sense.

List Your Tennessee Restaurant

Whether you're in Nashville, Memphis, Knoxville, or Chattanooga, the fastest way to reach real buyers is to list where they're already looking. List your restaurant on ListingLedge — built exclusively for hospitality, confidential if you need it. Not sure of your number? Start with our valuation guide first. (Also see our guides for Georgia and North Carolina.)