South San Francisco, CA
$220,000

South San Francisco, CA
$220,000

San Bernardino County, CA
$800,000
Diamond Bar, CA
$180,000
Los Gatos, CA
$219,000
Los Angeles County, CA
$249,000
Walnut Creek, CA
$250,000
Milpitas, CA
$219,000
Petaluma, CA
$425,000
Buena Park, CA
$949,000
California
$225,000
Merced County, CA
$180,000
Folsom, CA
$200,000
Naval Base Ventura County, CA
$920,000
Los Angeles, CA
$225,000
Baldwin Park, CA
$80,000
Contra Costa County, CA
$168,000
R. Everett Roff
California Business Exchange
Serving San Diego County, CA
Gardena, CA
$299,000
Cupertino, CA
$1,500,000
Alameda County, CA
$179,000
San Luis Obispo County, CA
$275,000
Glendale, CA
$300,000
Lathrop, CA
$150,000
San Bernardino, CA
$375,000
Riverside, CA
$445,000
La Mirada, CA
$120,000
Burlingame, CA
$225,000
Yorba Linda, CA
$280,000
Santa Rosa, CA
$395,000
Culver City, CA
$199,000
Oakland, CA
$395,000
Milpitas, CA
$295,000
San Leandro, CA
$200,000
San Francisco, CA
$238,000
Santee, CA
$119,999
REAL ESTATE INCLUDED
Oroville, CA
$450,000
Indio, CA
$1,490,000
Woodland Hills, CA
$350,000
Alameda, CA
$320,050
San Jose, CA
$240,000
Ontario, CA
$350,000
San Diego, CA
$350,000
Anaheim, CA
$490,000
Indio, CA
$1,300,000
Long Beach, CA
$15,000
Tommy Taylor
Executive Realty Group
Serving Riverside County, CA
Oakland, CA
$175,000
Alameda, CA
$115,000
San Jose, CA
$225,000
San Jose, CA
$225,000
Sacramento County, CA
$120,000
Murrieta, CA
$198,000
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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