San Diego, CA
$300,000
San Diego, CA
$300,000
San Francisco, CA
$490,000
Hollywood, CA
$49,000
Los Angeles County, CA
$1,800,000
REAL ESTATE INCLUDED
Orange County, CA
$10,000,000
Bakersfield, CA
$355,000
Livermore, CA
$274,999
North Hollywood, CA
$795,000
San Jose, CA
$249,000
Alameda, CA
$249,999
Alameda, CA
$75,000
Los Angeles, CA
$600,000
Los Alamitos, CA
$200,000
Milpitas, CA
$288,000
Redwood City, CA
$228,000
La Habra, CA
$50,000
Matt Mertens
Transworld Business Brokers
Serving Sacramento County, CA
West Hollywood, CA
$500,000
Fremont, CA
$200,000
Bakersfield, CA
$180,000
San Bruno, CA
$179,000
Norco, CA
$55,000
Orange County, CA
$150,000
El Segundo, CA
$159,000
Ventura County, CA
$120,000
Folsom, CA
$1,900,000
Carpinteria, CA
$775,000
Elk Grove, CA
$195,000
Marina Del Rey, CA
$59,000
Norco, CA
$87,000
Alameda County, CA
$599,000
Bakersfield, CA
$175,000
Pasadena, CA
$150,000
Newark, CA
$148,000
Jurupa Valley, CA
$610,000
Los Angeles, CA
$49,000
Los Angeles, CA
$59,000
Riverside County, CA
$250,000
Los Angeles, CA
$180,000
California
$380,000
Vallejo, CA
$249,000
Pacific Grove, CA
$400,000
La Habra, CA
$132,000
Los Angeles, CA
$250,000
Pasadena, CA
$109,000
Gregory DiCristina
Chase Group Business Brokers, Inc
Serving Riverside County, CA
Started in 2004 and focused exclusively on business sales since 2006 Chase Group Business Brokers, Inc. has offices in two Southern California counties to best serve business owner and buyer needs from San Diego to Los Angeles and in between.
Sacramento County, CA
$160,000
San Diego, CA
$200,000
Los Angeles County, CA
$969,000
Alameda County, CA
$200,000
Thousand Oaks, CA
$55,000
Van Nuys, CA
$110,000
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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