San Juan Capistrano, CA
$375,000

San Juan Capistrano, CA
$375,000

San Jose, CA
$333,000

Oxnard, CA
$120,000

San Diego, CA
$220,000
Los Angeles, CA
$850,000
Los Angeles, CA
$305,000
Placer County, CA
$85,000
Los Angeles, CA
$260,000
Sonoma County, CA
$234,000
Los Angeles County, CA
$88,000
Northridge, CA
$270,000
Thousand Oaks, CA
$295,000
Millbrae, CA
$195,000
$280,000
Santa Monica, CA
Elk Grove, CA
$299,000
Los Angeles County, CA
$339,000
Joel Higginbotham
Business Team Group
Serving Placer County, CA
Business Team, a unit of BTI Group, is the Largest Business Brokerage Firm in the Western United States specializing in arranging the purchase and sale of privately owned companies. During our third of a century of existence, we have developed both an unmatched depth of experience (an aggregate of several hundred years!) and a vast network of individual, corporate, and investment group buyers.
Fresno County, CA
$350,000
Castroville, CA
$125,000
Westminster, CA
$120,000
Solana Beach, CA
$185,000
Los Angeles County, CA
$145,000
Huntington Beach, CA
$140,000
San Mateo, CA
$370,000
Santa Clara County, CA
$399,999
$275,000
San Diego, CA
Rosemead, CA
$75,000
Arcadia, CA
$60,000
San Francisco, CA
$150,000
San Francisco, CA
$178,000
Milpitas, CA
$248,000
REAL ESTATE INCLUDED
Murrieta, CA
$2,132,500
San Francisco, CA
$65,000
Oakland, CA
$200,000
San Bernardino, CA
$350,000
Butte County, CA
$516,731
$199,000
Monterey County, CA
Victorville, CA
$299,999
Redwood City, CA
$200,000
Orange County, CA
$550,000
Humboldt County, CA
$390,000
West Covina, CA
$1,250,000
San Mateo County, CA
$750,000
Redondo Beach, CA
$300,000
Tarzana, CA
$360,000
Alvart Tina Alagulyan
John Hart Real Estate
Serving Los Angeles County, CA
Los Angeles, CA
$670,000
Burbank, CA
$760,000
$595,000
Fountain Valley, CA
Hermosa Beach, CA
$330,000
San Diego County, CA
$179,000
Murphys, CA
$375,000
Wildomar, CA
$900,000
Napa County, CA
$225,000
San Francisco, CA
$100,000
Mendocino County, CA
$300,000
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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