Restaurant & Food Service Business Valuations

Serving Los Angeles, Orange County, Santa Monica & Southern California

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Industry Description

This industry comprises establishments primarily engaged in providing food services at institutional, governmental, commercial, or industrial locations of others based on contractual arrangements with these type of organizations for a specified period of time. The establishments of this industry provide food services for the convenience of the contracting organization or the contracting organization's customers. The contractual arrangement of these establishments with contracting organizations may vary from type of facility operated (e.g., cafeteria, restaurant, fast-food eating place), revenue sharing, cost structure, to providing personnel. Management staff is always provided by the food service contractors.

Benchmark Data

$1 Million - $5 Million Net Sales

  • MVIC/Net Sales: 0.69
  • MVIC/Gross Profit: 1.78
  • MVIC/SDE: 3.21
  • MVIC/EBITDA: 4.31

Statistics (Food Service Contractors)

  • Number of Establishments: 74,528
  • Average Profit Margin: 7.1%
  • Revenue per Employee: $105,000
  • Average Number of Employees: 6.9
  • Average Wages per Employee: $30,006

Valuation, Data & Brokerage Support

LA Valuations is a valuation- and data-driven advisory firm with brokerage capabilities. We support transactions, disputes, tax matters, financial reporting, and M&A execution—anchored in disciplined pricing and defensible analysis.

Professional standards: Our analyses align with USPAP, American Society of Appraisers, AICPA valuation guidance, and CFA Institute principles.

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