El Segundo, CA
$159,000

El Segundo, CA
$159,000

Ventura County, CA
$120,000

Folsom, CA
$1,900,000

Carpinteria, CA
$775,000
Elk Grove, CA
$195,000
Marina Del Rey, CA
$59,000
Norco, CA
$87,000
Alameda County, CA
$599,000
Bakersfield, CA
$175,000
Pasadena, CA
$150,000
Newark, CA
$148,000
Los Angeles, CA
$49,000
Los Angeles, CA
$59,000
Riverside County, CA
$250,000
Los Angeles, CA
$180,000
California
$380,000
Johnathan Choe
TransWorld
Serving Los Angeles County, CA
Transworld Business Advisors is the world leader in the marketing and sales of businesses, mergers and acquisitions, and franchises. Whether you represent an acquisition-minded corporation or are personally interested in owning your own company or new franchise, Transworld Business Advisors offers the professional services that successfully bring buyers and sellers together. Transworld Business Advisors was founded in 1979 in South Florida and quickly grew into one of the largest business brokerage firms in the United States. With more than 300 offices in 49 of the United States and in 19 countries, Transworld Business Advisors is the global leader in helping our clients gain global reach while working with local offices that are owned and operated.
Vallejo, CA
$249,000
Pacific Grove, CA
$400,000
Los Angeles, CA
$250,000
Pasadena, CA
$109,000
Sacramento County, CA
$160,000
San Diego, CA
$200,000
Los Angeles County, CA
$969,000
Alameda County, CA
$200,000
Thousand Oaks, CA
$55,000
Van Nuys, CA
$110,000
Studio City, CA
$295,000
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
San Bernardino, CA
$220,000
Santa Maria, CA
$99,000
Contra Costa County, CA
$795,000
Los Angeles County, CA
$999,500
El Monte, CA
$109,000
Bellflower, CA
$129,000
Riverside County, CA
$350,000
North Hollywood, CA
$350,000
Union City, CA
$150,000
Agoura Hills, CA
$119,000
Ernie Martinez
Century 21
Serving Santa Clara County, CA
Century 21 is the largest and oldest Business Broker and Real Estate since 1971 in all of Northern and Southern. Exclusive online listings that attract 1,000's of additional potential buyers and investors. .
San Jose, CA
$1,888,888
San Francisco, CA
$250,000
Sonoma County, CA
$225,000
Merced County, CA
$435,000
Contra Costa County, CA
$282,500
Orange County, CA
$900,000
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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