East Los Angeles, CA
$299,000
East Los Angeles, CA
$299,000
San Luis Obispo, CA
$425,000
Los Angeles County, CA
$69,000
Wilmington, CA
$325,000
Solana Beach, CA
$295,000
San Diego, CA
$349,000
Rancho Cucamonga, CA
$149,000
West Covina, CA
$100,000
San Diego County, CA
$120,000
Orange, CA
$500,000
Santa Ana, CA
$205,000
Anaheim Hills, CA
$119,000
Orange County, CA
$39,500
Anaheim, CA
$195,000
Los Angeles, CA
$650,000
Lomita, CA
$789,000
Matt Manavi, MBA, CBB, CBI, CM&AP, M&AMI
California Mergers and Acquisitions
Serving Orange County, CA
Transworld Business Advisors is a world leader in the marketing and sale of businesses, franchises, and commercial real estate. Transworld offers professional services that brings buyers and sellers together whether you represent an acquisition minded corporation or are personally interested in owning your own company. We serve all business owners in Southern CA with offices in San Berbardino County, Orange County, and San Diego County.
Bakersfield, CA
San Diego County, CA
$3,600,000
Long Beach, CA
$999,000
Tracy, CA
$949,000
Woodland Hills, CA
Hayward, CA
Santa Barbara County, CA
$4,950,000
California
$330,000
Ridgecrest, CA
Vacaville, CA
Cypress, CA
$2,600,000
Orange County, CA
$790,000
Tuolumne County, CA
$1,375,000
San Francisco, CA
$2,900,000
Fortuna, CA
$1,390,000
Montebello, CA
Newport Beach, CA
$20,000,000
Chino, CA
$195,000
Los Angeles, CA
Sherman Oaks, CA
Los Angeles County, CA
North Hollywood, CA
Burney, CA
$350,000
Grass Valley, CA
Santa Paula, CA
$2,499,000
Hayward, CA
Hemet, CA
$1,999,999
San Francisco, CA
Alex Sanchez
Realty One Group
Serving Orange County, CA
El Dorado County, CA
$850,000
Anaheim, CA
$2,950,000
Santa Paula, CA
$2,996,000
Fresno County, CA
$760,000
Amador City, CA
$1,499,000
Capitola, CA
$725,000
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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