Tarzana, CA
$245,000

Tarzana, CA
$245,000

Sonoma County, CA
$1,400,000

San Francisco, CA
$69,000

Santa Clara County, CA
$750,000
San Jose, CA
$350,000
Orange County, CA
$375,000
El Dorado County, CA
$3,300,000
Fontana, CA
$70,000
Stockton, CA
$250,000
Sonoma County, CA
$299,000
San Francisco, CA
$50,000
Redondo Beach, CA
$225,000
Rolling Hills Estates, CA
$225,000
Anaheim, CA
$109,000
California
$549,000
Livermore, CA
$188,000
Scott Reid
Parasell Inc
Serving Orange County, CA
ParaSell, Inc. is a national real estate services and consulting firm that specializes in commercial leasing and investment sales. We work with principals across the nation and have a proven process, proprietary time-saving technology, dedicated support staff and a relentless commitment to customer service.
Seal Beach, CA
$140,000
Carmel, CA
$250,000
California
$15,000
California
$50,000
San Jose, CA
$350,000
San Bernardino County, CA
$599,000
San Rafael, CA
$75,000
Santa Barbara County, CA
$149,000
Fremont, CA
$288,000
Ventura County, CA
$225,000
Simi Valley, CA
$99,000
Oakland, CA
$349,000
Newark, CA
$175,000
California
$1,795,000
Los Angeles, CA
$2,880,000
Los Angeles County, CA
$169,000
San Luis Obispo, CA
$1,000,000
San Diego, CA
$500,000
Huntington Beach, CA
$650,000
Danville, CA
$99,900
Sonoma County, CA
$325,000
Mill Valley, CA
$155,000
Ventura, CA
$495,000
Los Angeles County, CA
$1,550,000
Alameda County, CA
$299,000
Contra Costa County, CA
$145,000
San Francisco, CA
$236,000
Los Angeles, CA
$845,000
Central Coast Business Brokers
Central Coast Business Brokers
Serving San Luis Obispo County, CA
Los Angeles, CA
$800,000
Isleton, CA
$69,000
Moraga, CA
$349,000
Granada Hills, CA
$285,000
Riverside County, CA
$349,000
Long Beach, CA
$450,000
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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