Studio City, CA
$395,000
Studio City, CA
$395,000
Pleasant Hill, CA
$380,000
Torrance, CA
$135,000
Alameda County, CA
$390,000
Torrance, CA
$275,000
Los Angeles County, CA
$129,000
San Diego, CA
$119,999
San Diego County, CA
$220,000
La Crescenta, CA
$250,000
San Bernardino, CA
$220,000
Santa Maria, CA
$99,000
Contra Costa County, CA
$795,000
Napa County, CA
$975,000
Fountain Valley, CA
$65,000
Los Angeles County, CA
$999,500
San Francisco, CA
$160,000
Matt Mertens
Transworld Business Brokers
Serving Sacramento County, CA
El Monte, CA
$115,000
Bellflower, CA
$129,000
Riverside County, CA
$350,000
San Diego County, CA
$200,000
North Hollywood, CA
$350,000
Union City, CA
$150,000
Agoura Hills, CA
$119,000
San Jose, CA
$1,888,888
Orange County, CA
$70,000
San Francisco, CA
$250,000
Sonoma County, CA
$225,000
Artesia, CA
$450,000
Los Angeles, CA
$75,000
Merced County, CA
$435,000
Contra Costa County, CA
$282,500
California
$1,400,000
Orange County, CA
$900,000
Alameda County, CA
$79,950
Lemon Grove, CA
$99,000
Sonoma County, CA
$267,000
Concord, CA
$178,000
Coloma, CA
$100,000
Walnut Creek, CA
$300,000
Daly City, CA
$99,000
Berkeley, CA
$220,000
Pomona, CA
$78,000
Ventura, CA
$35,000
Scotts Valley, CA
$300,000
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.
San Diego, CA
$249,000
Rowland Heights, CA
$90,000
Tehachapi, CA
$330,000
San Bernardino County, CA
$150,000
La Quinta, CA
$650,000
San Jose, CA
$298,000
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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