Pappas Bros Steakhouse

Liquor sales only — total revenue is higher
Every dollar on this page comes from Mixed Beverage Gross Receipts filings — the alcohol portion of total sales. For a Steakhouse, liquor is typically only 25–40% of total business revenue. Steakhouse. Total revenue is typically 2.5–4× our liquor figure (high food average ticket). Estimated total revenue (rough): $8,483,495 – $13,573,592/year. Treat the valuation below as a screening estimate based on the alcohol portion alone.

Executive Summary

Click to expand full narrative

Pappas Bros Steakhouse is a mixed-beverage licensed establishment at 1200 MCKINNEY ST STE 106, Houston, Texas (TABC MB850200). Over the most recent 12 months it reported $3,393,398 in gross alcohol sales, averaging $282,783/month with a best month of $417,428. Sales mix: ~32% liquor · 2% beer · 66% wine. The building at this address is owned by BSREP II HOUSTON OFFICE 4HC OWNER LLC (256,497 sqft, $93,044,480 assessed value per county records). Applying Texas bar cost benchmarks yields an estimated annual net of approximately $924,191 (~27% margin). Acquisition value is estimated at $2,310k–$3,235k across revenue-multiple, SDE-multiple, and cap-rate methods. All revenue figures are gross mixed-beverage receipts as filed with the Texas Comptroller; they exclude cash income such as cover charges, game machines, or merchandise.

Sales performance · last 12 months

Texas Comptroller mixed-beverage gross receipts actual

Annual gross

$3,393,398

Avg monthly

$282,783

Best month

$417,428

Dec 2025

Sales mix

32% Liq

2% Beer · 66% Wine

Property & occupancy

County public records + submarket comps

Building (landlord parcel)

Record ID0011310000001

Property owner (landlord)BSREP II HOUSTON OFFICE 4HC OWNER LLC

Total building SF whole parcel — Pappas Bros Steakhouse is in STE 106256,497

Pappas Bros Steakhouse's footprint estimated — suite-level not on file 7,500 sf

Assessed value$93,044,480

Pappas Bros Steakhouse's share

Est. base rent ~$44/sqft/yr · 7,500 sqft · Class A $27,206/mo

NNN CAM / insurance$4,081/mo

NNN property tax$5,441/mo

Personal property tax est — no BPP record $500/mo

Total occupancy $37,229/mo

Occupancy analysis

All-in occupancy cost is 13.2% of gross revenue. Industry benchmark for healthy bars is 6–10%; 12–15% is typical for premium submarkets; above 18% is unsustainable without very strong margins elsewhere.

Profit scenarios

Texas bar cost model applied to $3,393,398 gross revenue estimated

Best Case

No kitchen, efficient staffing, favorable lease

~37%

Revenue$3,393,398

COGS (24%)−$814,416

Labor (14%)−$475,076

Occupancy−$402,068

TX MB gross tax (6.7%)−$227,358

Utilities / ins / mktg (8%)−$271,472

Card surcharge net+$37,327

Net profit $1,240,337

Most Likely

Typical bar, light food program, full two-shift staffing

~27%

Revenue$3,393,398

COGS (27%)−$916,217

Labor (17%)−$576,878

Occupancy−$446,742

TX MB gross tax (6.7%)−$227,358

Utilities / ins / mktg (10%)−$339,340

Card surcharge net+$37,327

Net profit $924,191

Stressed

Heavy food, larger crew, higher rent

~16%

Revenue$3,393,398

COGS (30%)−$1,018,019

Labor (22%)−$746,548

Occupancy−$491,416

TX MB gross tax (6.7%)−$227,358

Utilities / ins / mktg (12%)−$407,208

Card surcharge net+$37,327

Net profit $540,177

Disclaimer: Revenue is mixed-beverage gross receipts from the Texas Comptroller — it does not include cash income like door charges, game machines, merchandise, or event rentals (which can add 10–25% for nightclubs). Cost ratios are industry benchmarks for Texas MB-permit bars. Rent is estimated from submarket comps; property tax is from county public records pro-rated by square footage. Actual profit depends on lease terms, staffing, owner salary, and one-time costs.

Owner income estimator

Split likely net profit across ownership estimated

TABC licensee Pappas Restaurants INC looking up officers…

Number of owners

Ownership split

Equal split (50% each)

Based on the "Most Likely" scenario net profit of $924,191/year. Actual owner income depends on salary draws, distributions, debt service, and tax structure. Consult an accountant for actual income projections.

Acquisition value estimate

Based on most-likely scenario (~$924,191 net) estimated

Revenue multiple

$1.70M–$2.71M

0.5–0.8× gross

SDE multiple

$2.31M–$3.23M

2.5–3.5× earnings

Cap rate

$2.80M–$3.70M

25–33%

Suggested range

$2,310k–$3,235k

blended estimate

The numbers above are liquor-only: bar-style multiples applied to mixed-beverage receipts. They're the right answer for a pure bar/lounge — but for a restaurant, this is just one slice of total enterprise value (the bar program). See the food-business estimate below.

Full-business estimate · Steakhouse

If you're buying the whole restaurant, not just the bar program

We estimate this steakhouse pulls $8,483,495–$13,573,592/yr in total revenue (your liquor portion of $3,393,398 is roughly 25–40% of the total per industry benchmarks). Applied to that estimated total: revenue multiple 0.30–0.50×, net margin 10–15%, SDE multiple 2.5–4.0× (restaurant comps, not bar comps).

Estimated total revenue

$8,483k–$13,574k

food + liquor + service

Estimated net (10–15%)

$848k–$2,036k

restaurant margin

Full-business value

$2,333k–$7,465k

blended rev × SDE

Confidence on this estimate is lower than the liquor-only valuation above — we're inferring food revenue from category averages, not from this specific operator's books. A serious buyer should request actual P&Ls + a Schedule C / 1120S.

Federal court history

20 cases on file · 1 currently open · public records

20 federal cases

1 currently open

2 wage-and-hour

2 ADA

6 civil rights

As defendant in 14 cases · As plaintiff in 6

Most recent filing

Dukes v. Pappas Restaurants, Inc.

GAND · 2024-12-19 · CLOSED

Public records, last checked 2026-05-22

Financials

Executive Summary

Sales performance · last 12 months

Property & occupancy

Occupancy analysis

Profit scenarios

Owner income estimator

Acquisition value estimate

If you're buying the whole restaurant, not just the bar program

Federal court history