Ground Round Restaurants
15 locations
The total investment to open a Ground Round Restaurants franchise ranges from $105,500 - $1.2M. Ground Round Restaurants currently operates 15 locations (15 franchised). The top SBA 7(a) lenders for Ground Round Restaurants are Readycap Lending, LLC, JPMorgan Chase Bank and Bank First. PeerSense FPI health score: 29/100.
$105,500 - $1.2M
15
15 franchised
Proprietary PeerSense metric
LimitedActive capital sources verified for Ground Round Restaurants financing
SBA
7(a) Eligible
21d
Avg Funding
P+2.25%
Best Rate
No retainers · Referral fee at closing
FPI Score Breakdown
Growing (10-24 loans)
SBA Lending Performance
SBA Default Rate
17.4%
4 of 23 loans charged off
SBA Loans
23
Total Volume
$15.5M
Active Lenders
13
States
12
Top SBA Lenders for Ground Round Restaurants
What is the Ground Round Restaurants franchise?
The Ground Round Restaurants franchise represents a distinctive and enduring presence within the highly competitive full-service restaurant category, embodying a rich tradition of hospitality and culinary quality that has resonated with diners for an extended period. Headquartered in BEMIDJI, MN, this brand has cultivated a loyal following by consistently delivering a welcoming atmosphere paired with a diverse menu designed to appeal to a broad demographic. With 16 total units currently operating, the Ground Round Restaurants franchise demonstrates a proven operational model and a recognizable brand identity that has successfully navigated various market conditions. Its market position is characterized by its commitment to providing a family-friendly dining experience, often featuring classic American fare alongside contemporary twists, ensuring relevance in an ever-evolving culinary landscape. The emphasis on creating a comfortable, inviting environment where guests can enjoy high-quality meals and attentive service distinguishes the Ground Round Restaurants franchise within the crowded full-service sector. This established presence, spanning multiple locations, speaks volumes about the brand's resilience and its ability to adapt while maintaining its core values. The consistent execution across its 16 units underscores a well-defined system that supports franchisees in delivering a uniform and satisfying customer experience, which is paramount in building brand equity and fostering repeat business in the full-service restaurant space. The Ground Round Restaurants franchise focuses on being a neighborhood staple, a place where families and friends can gather for casual meals, celebrations, and everything in between, reinforcing its appeal as a reliable and cherished dining destination. This strategic positioning allows the Ground Round Restaurants franchise to capture a significant share of the local dining market, leveraging its established reputation and operational efficiencies to maintain profitability and sustained growth. The brand’s enduring appeal lies in its ability to blend tradition with modern dining expectations, offering a menu that satisfies classic tastes while incorporating elements that keep it fresh and exciting for today’s consumers, solidifying its standing in the market.
The full-service restaurant industry in which the Ground Round Restaurants franchise operates is a colossal and dynamic segment of the global economy, characterized by its constant evolution and significant economic impact. In the United States alone, the restaurant industry is projected to reach an astounding $1.1 trillion in sales in 2024, representing a substantial portion of consumer spending and a major employer across the nation. Full-service restaurants, a core component of this vast market, continue to experience robust demand driven by various factors including shifting consumer lifestyles, a persistent desire for experiential dining, and the increasing convenience of eating out. The growth trajectory of this sector is influenced by demographic changes, with younger generations often prioritizing dining experiences over material goods, and an aging population seeking comfortable and accessible dining options. Technological integration plays an increasingly vital role, with widespread adoption of online ordering platforms, mobile payment systems, and sophisticated point-of-sale technologies streamlining operations and enhancing customer engagement. Consumers in 2024 are not only seeking quality food but also value, convenience, and an engaging atmosphere, driving innovation in menu development, restaurant design, and service models. The demand for healthier options, plant-based alternatives, and locally sourced ingredients continues to shape menu trends across the full-service segment. Furthermore, the industry is seeing a continued emphasis on sustainability practices, from reducing food waste to implementing eco-friendly packaging and operational procedures. Despite challenges such as fluctuating food costs, labor shortages, and intense competition, the full-service restaurant market demonstrates remarkable resilience, adapting to new consumer preferences and economic pressures. The sector's ability to innovate and provide diverse dining experiences ensures its continued relevance and growth, making it an attractive arena for established brands like the Ground Round Restaurants franchise to expand and thrive. The consistent need for places where people can gather, socialize, and enjoy prepared meals ensures a foundational demand for full-service establishments.
Embarking on the journey to establish a Ground Round Restaurants franchise involves a significant yet flexible financial commitment, reflecting the diverse operational models and strategic locations available within the full-service restaurant landscape. The total investment range for a Ground Round Restaurants franchise is delineated between $105,500 and $1.20 million, a wide spectrum that accommodates various scales of operation and development strategies. This comprehensive investment figure encompasses a multitude of essential expenditures necessary to bring a full-service restaurant concept to fruition and ensure its successful launch. At the lower end of the spectrum, the $105,500 investment might facilitate the conversion of an existing restaurant space, minimizing construction costs and potentially accelerating the opening timeline. This scenario often involves leveraging existing infrastructure such as kitchen layouts, utility connections, and dining area shells, thereby reducing the initial capital outlay required for extensive build-out. Conversely, the upper end of the investment range, reaching $1.20 million, typically reflects the cost of developing a brand-new facility from the ground up or undertaking a substantial renovation of a premium location. Such an investment allows for complete customization of the restaurant's design, ensuring it fully embodies the Ground Round Restaurants franchise aesthetic and operational specifications, often in prime real estate markets.
Regardless of the specific investment tier, the total capital outlay generally covers several critical components. These typically include comprehensive leasehold improvements and construction costs, which are paramount for any full-service restaurant. This category accounts for the interior build-out of dining areas, kitchen infrastructure, restrooms, and exterior facades, all designed to meet brand standards and local building codes. The acquisition of essential restaurant equipment constitutes another substantial portion of the investment. This encompasses everything from commercial ovens, fryers, griddles, and refrigeration units to dishwashing systems, point-of-sale (POS) hardware and software, dining room furniture, fixtures, and smallwares like cutlery, plates, and glassware. Initial inventory, comprising food, beverages, and operational supplies needed for the opening period, also forms a crucial part of the investment, ensuring the restaurant is fully stocked and ready to serve customers from day one. Furthermore, a significant portion of the total investment is allocated to working capital. This crucial fund is designed to cover initial operating expenses during the critical ramp-up phase, typically spanning the first three to six months of operation. These expenses include rent, utilities, initial payroll for staff training and early operational periods, local marketing initiatives to drive grand opening awareness, and various business licenses and permits required by local and state authorities. Professional fees for legal counsel and accounting services during the setup phase are also factored into this comprehensive investment. The broad range signifies the flexibility inherent in the Ground Round Restaurants franchise model, allowing potential franchisees to align their investment with their financial capacity and preferred operational scale, whether aiming for a smaller, efficiently managed unit or a larger, more comprehensive dining establishment. The strategic deployment of this capital is meticulously planned to optimize the launch and ongoing success of each Ground Round Restaurants franchise location, ensuring that every dollar contributes to establishing a robust and appealing dining destination.
The operating model of a Ground Round Restaurants franchise is meticulously designed to ensure consistency, efficiency, and guest satisfaction across its 16 units, reflecting a well-honed system perfected over time within the full-service restaurant sector. New franchisees benefit immensely from a structured support system that begins long before the doors open to the public. Comprehensive initial training programs are a cornerstone of this model, covering all facets of restaurant management, from back-of-house kitchen operations and food preparation standards to front-of-house customer service protocols, inventory management, and marketing strategies. This training ensures that franchisees and their key management team are fully equipped to uphold the brand's quality and service expectations. Beyond the initial training, the Ground Round Restaurants franchise provides ongoing operational support, which is critical in a fast-paced industry like full-service dining. This includes regular updates on menu development, access to proprietary recipes and preparation techniques, and guidance on maintaining food safety and hygiene standards that meet or exceed industry regulations. Franchisees receive assistance with supply chain management, often benefiting from established vendor relationships and purchasing power that help optimize cost of goods and ensure consistent ingredient quality.
The franchisor also plays a pivotal role in marketing and brand development. Franchisees gain access to pre-designed marketing collateral, advertising campaigns, and local marketing strategies tailored to promote their specific Ground Round Restaurants franchise location within their designated territory. This support includes digital marketing tools, social media guidance, and public relations assistance, all aimed at building brand awareness and driving customer traffic. Technology integration is another key aspect of the operational support. Franchisees are typically provided with state-of-the-art point-of-sale (POS) systems, inventory tracking software, and reporting tools that streamline daily operations, enhance efficiency, and provide valuable insights into business performance. These systems are crucial for managing orders, tracking sales, controlling costs, and analyzing customer data to inform strategic decisions. Furthermore, the Ground Round Restaurants franchise model often includes ongoing field support from experienced franchise consultants. These consultants provide regular visits, performance reviews, and personalized coaching to help franchisees optimize their operations, address challenges, and capitalize on growth opportunities. This continuous guidance ensures that each of the 16 units adheres to brand standards, operates profitably, and contributes to the overall strength and reputation of the Ground Round Restaurants franchise system. The collective expertise within the franchise network, coupled with robust communication channels, allows franchisees to share best practices and benefit from a collaborative environment, reinforcing the strength and stability of the Ground Round Restaurants franchise brand.
While specific financial performance representations for the Ground Round Restaurants franchise are not publicly disclosed, the viability of any full-service restaurant operation is inherently tied to a myriad of factors that influence revenue generation and profitability. In the broader full-service restaurant sector, revenue streams are typically diversified, encompassing not only food sales but also beverage sales, which often carry higher profit margins, and potentially catering services or merchandise sales. The gross revenue of a full-service restaurant is significantly impacted by factors such as location, customer traffic, average check size, and the efficiency of table turnover. A prime location with high visibility and accessibility, coupled with effective local marketing, can substantially drive customer volume. The culinary appeal and quality of the menu offerings, along with exceptional customer service, are paramount in encouraging repeat business and positive word-of-mouth referrals, which are invaluable for sustained revenue growth. Efficient management of labor costs, which typically represent a substantial portion of operating expenses in the full-service sector, is crucial for profitability. This involves optimizing staffing levels, effective scheduling, and minimizing employee turnover through competitive compensation and a positive work environment.
Cost of goods sold (COGS), particularly for food and beverages, must be meticulously managed through strategic purchasing, inventory control, and waste reduction efforts. Negotiating favorable terms with suppliers, leveraging bulk purchasing opportunities, and implementing robust inventory management systems are essential for maintaining healthy profit margins. Occupancy costs, including rent, utilities, and property maintenance, are another significant expense category that varies based on location and facility size. Effective lease negotiation and energy-efficient operations can help mitigate these costs. Marketing and advertising expenditures, while necessary to attract and retain customers, must be strategically allocated to yield the best return on investment. This includes both national brand campaigns, if applicable, and targeted local marketing initiatives. The overall profitability of a Ground Round Restaurants franchise, like any successful full-service establishment, ultimately hinges on a delicate balance of these operational efficiencies, strong customer loyalty, and consistent delivery of a high-quality dining experience. Strategic pricing of menu items, portion control, and minimizing food waste directly contribute to bottom-line performance. Furthermore, the ability to adapt to changing consumer preferences and economic conditions, such as introducing seasonal menus or special promotions, plays a vital role in maintaining revenue momentum. A well-managed full-service restaurant with a strong brand identity and efficient operations can achieve sustainable financial success, providing a compelling return on investment for dedicated franchisees who diligently execute the proven business model. The potential for profitability is robust for those who master the intricacies of restaurant management and consistently deliver an exceptional dining experience.
The growth trajectory for the Ground Round Restaurants franchise, with its established presence of 16 units, is poised for continued expansion, capitalizing on its proven operational model and distinct market positioning within the full-service restaurant industry. The very existence of 16 units underscores a scalable business model that has successfully replicated its concept across various geographical markets, indicating strong potential for future growth. A significant competitive advantage for the Ground Round Restaurants franchise lies in its established brand recognition and the loyalty it has cultivated over time. In a fragmented market, a recognizable brand provides an immediate advantage in attracting customers who seek reliability and a consistent dining experience. This established reputation reduces the initial customer acquisition hurdles typically faced by independent start-ups. The brand’s ability to offer a diverse and appealing menu that caters to a broad demographic further strengthens its competitive edge. By blending classic American comfort food with contemporary culinary trends, the Ground Round Restaurants franchise ensures its menu remains fresh, relevant, and appealing to a wide array of tastes and preferences, from families with children to casual diners and groups of friends.
Operational efficiency, honed over years of managing multiple locations, represents another key competitive advantage. The franchisor’s ability to provide comprehensive training, supply chain management, and ongoing support allows franchisees to operate their Ground Round Restaurants franchise units effectively and profitably. This systematic approach minimizes operational risks and maximizes consistency in service and product quality across all 16 locations. Furthermore, the Ground Round Restaurants franchise benefits from economies of scale in purchasing and marketing that individual restaurants cannot achieve. Centralized procurement can lead to cost savings on ingredients and supplies, while collective marketing efforts amplify brand visibility and impact. The full-service dining sector continues to evolve, with consumers placing a high value on dining experiences, and the Ground Round Restaurants franchise is well-positioned to meet this demand by offering a comfortable, inviting atmosphere conducive to social gatherings and memorable meals. Its adaptability in menu offerings and operational strategies allows it to remain competitive against emerging trends and maintain its market share. The inherent resilience of a well-managed full-service restaurant brand, especially one with a loyal customer base and a proven track record, provides a strong foundation for sustained growth and expansion into new territories, further solidifying its presence in the competitive landscape.
The ideal franchisee for a Ground Round Restaurants franchise is an individual or ownership group that embodies a unique blend of business acumen, genuine passion for hospitality, and a steadfast commitment to operational excellence. While direct prior experience in the full-service restaurant industry is highly beneficial, it is not always a mandatory prerequisite, as comprehensive training and ongoing support are integral components of the franchise system. However, a strong understanding of fundamental business principles, including financial management, marketing, and human resources, is absolutely essential. Prospective franchisees must possess robust leadership qualities, capable of inspiring and managing a diverse team of employees, from kitchen staff to front-of-house personnel, ensuring a cohesive and high-performing operation. A customer-centric approach is paramount, as the success of any Ground Round Restaurants franchise hinges on consistently delivering exceptional service and a memorable dining experience that fosters loyalty and repeat business. The ability to engage with the local community, understand its specific dining preferences, and actively participate in local marketing initiatives is also a critical attribute for driving local patronage and building a strong community presence. Furthermore, a franchisee must demonstrate a solid financial capacity to not only meet the initial investment range of $105,500 to $1.20 million but also possess sufficient liquid capital to navigate the initial operational phase and sustain the business until it reaches profitability.
Territory selection is another critical factor in the success of a Ground Round Restaurants franchise. Ideal territories often include densely populated suburban areas, bustling commercial districts, or regions with a strong family demographic, where there is a consistent demand for full-service dining options. Proximity to residential neighborhoods, shopping centers, entertainment venues, and other community hubs enhances visibility and accessibility, which are crucial for attracting a steady stream of customers. The availability of adequate parking, ease of access from major thoroughfares, and a strong local economy with favorable consumer spending habits are also key considerations. A thorough market analysis, including demographic studies, competitive landscape assessment, and traffic pattern evaluations, is typically conducted to identify prime locations that offer the highest potential for success for a Ground Round Restaurants franchise. The franchisor often provides guidance and support in evaluating potential sites, leveraging their experience from the existing 16 units to help franchisees make informed decisions about their chosen territory. This strategic approach to site selection, combined with the right entrepreneurial spirit and operational dedication, sets the stage for a thriving Ground Round Restaurants franchise establishment, ensuring it becomes a cherished dining destination within its community.
The Ground Round Restaurants franchise presents a compelling investor opportunity for entrepreneurs seeking entry into the resilient and dynamic full-service restaurant sector. With an FPI Score of 29, the brand demonstrates a measured yet significant potential for growth and profitability within its established framework of 16 units. This score, when evaluated on PeerSense, provides independent insight into the brand's overall health and attractiveness as a franchise investment. Investing in a Ground Round Restaurants franchise means joining a system with a proven track record, a recognized brand name, and an operational model that has been refined over time to deliver a consistent and appealing dining experience. The full-service restaurant market continues to show strong fundamentals, driven by consumer demand for quality food, diverse menu options, and engaging social experiences, ensuring a sustained need for well-managed establishments. The flexible investment range, from $105,500 to $1.20 million, allows for various entry points and scales of operation, making it accessible to a broader spectrum of investors while ensuring robust development capabilities for larger projects. Franchisees benefit from comprehensive training and ongoing support, which are crucial for navigating the complexities of restaurant management and maximizing operational efficiency. The opportunity to leverage an established supply chain, marketing strategies, and operational best practices significantly de-risks the venture compared to launching an independent restaurant. The Ground Round Restaurants franchise offers a chance to build a valuable asset within a thriving industry, supported by a franchisor committed to the success of its partners. This is an invitation to become part of a brand that understands the essence of hospitality and the nuances of profitable restaurant operation, providing a solid foundation for long-term entrepreneurial success. Explore the complete Ground Round Restaurants franchise profile on PeerSense to access the full suite of independent franchise intelligence data.
FPI Score
29/100
SBA Default Rate
17.4%
Active Lenders
13
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Ground Round Restaurants based on SBA lending data
SBA Default Rate
17.4%
4 of 23 loans charged off
SBA Loan Volume
23 loans
Across 13 lenders
Lender Diversity
13 lenders
Avg 1.8 loans per lender
Investment Tier
Significant investment
$105,500 – $1,200,000 total
Ground Round Restaurants — Deep SBA Data
Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2004
4 approvals — best year on record for Ground Round Restaurants.
Top SBA State
Wisconsin
5 SBA-financed Ground Round Restaurants locations — the densest operator footprint.
Average Loan Size
$676K
Median $584K — use as a sizing anchor when modeling your own $Ground Round Restaurants unit.
Lender Concentration
39.1%
Moderately Spread
Share of Ground Round Restaurants approvals captured by the top 3 SBA lenders.
Ground Round Restaurants's SBA lending pipeline peaked in 2004 (4 approvals). Operator density is highest in Wisconsin with 5 SBA-financed locations. Average funded ticket sits at $676K, with the median at $584K. Lender mix is moderately spread: the top three SBA lenders account for 39.1% of approvals — meaningful choice exists but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$1,092
Principal & Interest only
Locations
Ground Round Restaurants — unit breakdown
Explore Funding for Ground Round Restaurants
Our business financing consultants help connect you with the right lending partners. No retainers — referral fee paid at closing.
Or get an instant analysis
Scan Your Deal Instantly