Los Angeles County, CA
$375,000
Los Angeles County, CA
$375,000
San Jose, CA
$148,000
South San Francisco, CA
$350,000
Richmond, CA
$360,000
Van Nuys, CA
$850,000
Dana Point, CA
$189,000
Manhattan Beach, CA
$140,000
Sacramento, CA
$200,000
Sonora, CA
$480,000
San Francisco, CA
$488,000
Los Angeles, CA
$395,000
Orange County, CA
$200,000
Ventura, CA
$99,000
Los Angeles, CA
$350,000
California
$550,000
Irvine, CA
$220,000
Fred Mercuro
Pacific Business Advisors
Serving Los Angeles County, CA
Pacific Business Advisors is a full service Financial Intermediary and Business Broker. As such we function as a middleman between Sellers and Buyers of Businesses…both Main Street Enterprises and Middle Market Companies. Affiliated businesses of Pacific Business Advisors include: the law firm of Michael T. Chulak & Associates, including Immigration attorneys focused on packaging various visa types with the purchase of a qualifying business, along with both First Nationwide Accounting Services, and Union America Insurance Agency.
Pasadena, CA
$400,000
Los Angeles, CA
$99,000
Pacifica, CA
$65,000
Oakland, CA
$150,000
Alameda County, CA
$220,000
San Francisco, CA
$245,000
Foothill Ranch, CA
$240,000
Larkspur, CA
$325,000
San Francisco, CA
$125,000
San Francisco, CA
$280,000
La Puente, CA
$150,000
Stockton, CA
$175,000
Orange County, CA
$149,000
Los Angeles, CA
$179,000
Sacramento County, CA
$195,000
Oakland, CA
$220,000
Artesia, CA
$249,000
San Leandro, CA
$220,000
Solano County, CA
$349,000
Fullerton, CA
$249,000
San Diego County, CA
$135,000
Redondo Beach, CA
$199,000
Alameda County, CA
$160,000
Santa Barbara County, CA
$135,000
Los Angeles County, CA
$350,000
Los Angeles, CA
$185,000
San Jose, CA
$168,000
Pleasanton, CA
$850,000
MOONEY LEE
Action Realty Task, Inc
Serving Orange County, CA
Lakewood, CA
$275,000
Escondido, CA
$149,999
Los Angeles, CA
$295,000
Granite Bay, CA
$80,000
Montebello, CA
$250,000
San Francisco, CA
$128,000
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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