Irvine, CA
$180,000
Irvine, CA
$180,000
Los Angeles, CA
$195,000
Encino, CA
$150,000

Pleasanton, CA
$75,000
Los Angeles, CA
$70,000
San Diego, CA
Not Disclosed
Tustin, CA
$98,000
Los Angeles County, CA
$79,000
Torrance, CA
$79,000
Rocklin, CA
$60,000
San Jose, CA
$75,000
San Francisco, CA
$125,000
San Diego, CA
$140,000
Anaheim, CA
$100,000
San Francisco, CA
$80,000
Los Angeles, CA
Not Disclosed
Umang Kathrani
Alliance Bay Realty
Serving Alameda County, CA
Business Broker for East Bay Area
Santa Monica, CA
Not Disclosed
Newark, CA
$200,000
La Mirada, CA
$150,000
Corona Del Mar, CA
$300,000
Newport Beach, CA
$275,000
Los Angeles, CA
Not Disclosed
Ontario, CA
$120,000
Monrovia, CA
$135,000
Norwalk, CA
$199,000
Stanton, CA
$95,000
Poway, CA
$100,000
San Francisco, CA
$246,000
Pasadena, CA
$75,000
Buellton, CA
$100,000
Anaheim, CA
$175,000
Chino Hills, CA
$150,000
Suisun City, CA
$30,000
San Francisco, CA
$130,000
Palm Springs, CA
$575,000
Laguna Niguel, CA
$195,000
Rowland Heights, CA
$210,000
Ladera Ranch, CA
$80,000
Los Angeles, CA
$74,500
Alameda County, CA
$229,000
San Francisco, CA
$275,000
Ramona, CA
$100,000
Los Angeles, CA
$475,000
San Diego, CA
$215,000
Arthur Huang
Pinnacle Real Estate Group
Serving Los Angeles County, CA
Santa Ana, CA
$149,999
San Diego County, CA
$99,000
San Diego County, CA
$17,450
Chula Vista, CA
$120,000
Truckee, CA
$175,000
Loma Linda, CA
$149,000
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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