Escondido, CA
$150,000
Escondido, CA
$150,000
Fremont, CA
$220,000
San Juan Capistrano, CA
$375,000
Stevenson Ranch, CA
$225,000
Alpine, CA
$179,999
Santa Ana, CA
$219,900
Mountain House, CA
$250,000
San Mateo County, CA
$750,000
Riverside County, CA
$1,100,000
Berkeley, CA
$99,000
Truckee, CA
$650,000
Placer County, CA
$179,000
Los Angeles, CA
$320,000
$595,000
Fountain Valley, CA
Carmel, CA
$249,000
Walnut Creek, CA
$395,000
Eric Marchand
MARCHAND REALTY LLC
Serving San Mateo County, CA
Chico, CA
$450,000
Orange County, CA
$210,000
Sacramento, CA
$200,000
Berkeley, CA
$195,000
Stockton, CA
$74,999
Redwood City, CA
$400,000
Madera County, CA
$375,000
Murrieta, CA
$99,000
$3,500,000
Truckee, CA
Menifee, CA
$249,000
Santa Cruz, CA
$220,000
Los Angeles County, CA
$320,000
San Diego County, CA
$50,000
Los Angeles, CA
$1,200,000
North Hollywood, CA
$950,000
Alameda County, CA
$99,000
Alameda, CA
$215,000
National City, CA
$99,999
San Jose, CA
$168,000
$1,400,000
Compton, CA
Hayward, CA
$188,000
Newark, CA
$385,000
Pittsburg, CA
$275,000
Garden Grove, CA
$95,000
San Francisco, CA
$195,000
Garden Grove, CA
$45,000
Palm Springs, CA
$198,000
Milpitas, CA
$350,000
Arthur Huang
Pinnacle Real Estate Group
Serving Los Angeles County, CA
Newark, CA
$185,000
Santa Cruz County, CA
$179,000
$140,000
Los Angeles, CA
Los Angeles, CA
$79,000
Los Angeles, CA
$59,000
Fairfax, CA
$180,000
Los Angeles County, CA
$849,000
Redondo Beach, CA
$500,000
Oceanside, CA
$950,000
San Diego, CA
$200,000
Food and restaurant businesses are among the most common businesses bought and sold on BizBuySell. Whether you are a buyer or a seller, it is helpful to have some context on the local market. To provide that context, we have analyzed restaurant for sale listings in California and aggregated financial data to help you compare and evaluate individual restaurant businesses.
Market Snapshot
Number of Businesses Analyzed |
1,825 |
Median Asking Price |
$282,000 |
Median Reported Revenue |
$660,000 |
Median Reported Earnings |
$120,000 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
California Restaurant Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.29 |
1.91 |
Median |
0.42 |
2.50 |
Upper Quartile |
0.60 |
3.33 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
Restaurant Business Valuation Multiples and Financial Benchmarks
FAQs
How much does it cost to buy a restaurant in California?
The median asking price for restaurants in California is $282,000. However, prices can range significantly higher or lower depending on location, size, type, and the financial health of the business.
How much do restaurant owners earn?
The median reported discretionary earnings for restaurant businesses listed for sale in California is $120,000. Earnings can vary greatly depending on the type of restaurant, location, management efficiency, and market demand.
How are restaurants in California valued?
Most business owners (and buyers) will start by applying earnings and revenue multiples to the businesses reported financials. This way buyers and sellers can gauge the value of a restaurant business relative to its peers in the market.
Based on our most recent analysis of California restaurant business listings, revenue multiples range from 0.29 to 0.60, with the median at 0.42. Earnings multiples range from 1.91 to 3.33, with the median at 2.50. This means restaurants in California are valued, on average, around 0.42 times annual revenue, and/or 2.50 times annual owner earnings.
On average, businesses sell for about 80-90% of asking price, so valuation multiples based on active listings tend to be higher than closed sale multiples.
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