Ground Round Restaurants
The total investment to open a Ground Round Restaurants franchise ranges from $105,500 to $1.2M.
What is the Ground Round Restaurants franchise?
Ground Round Restaurants is a full service restaurant franchise headquartered in BEMIDJI, MN. The brand has 16 total units and serves as a neighborhood dining destination for families, friends, casual meals, and celebrations. Its positioning centers on a welcoming, family friendly setting, classic American fare, contemporary menu additions, attentive service, and a comfortable atmosphere. The concept is intended to appeal to a broad demographic while adapting to changing dining expectations. Its presence across multiple locations reflects an operating system that has been repeated across markets, with a consistent customer experience intended to support repeat visits and brand recognition. Ground Round Restaurants combines traditional dining with menu and service elements designed to remain relevant for current consumers. The brand’s focus on familiar meals, social occasions, and a reliable local presence places it within the full service restaurant category rather than a limited service format.
Ground Round Restaurants operates in the full service restaurant industry, a large segment of the global economy that continues to change with consumer habits. In the United States, the restaurant industry is projected to reach $1.1 trillion in sales in 2024. Full service restaurants benefit from demand for prepared meals, social occasions, and dining experiences outside the home. Younger consumers may place greater value on dining experiences than on material goods, while an aging population may seek comfortable and accessible restaurants. Online ordering platforms, mobile payment systems, and point of sale technology are increasingly used in restaurant operations and customer interactions. Consumers in 2024 are looking for quality food, value, convenience, and an engaging setting. Menu development is also being shaped by interest in healthier options, plant based alternatives, and locally sourced ingredients. Restaurants continue to address sustainability through efforts such as reducing food waste, using eco friendly packaging, and changing operating procedures. Fluctuating food costs, labor shortages, and intense competition remain challenges. Even with those pressures, full service restaurants continue to adapt by offering varied dining experiences and places where people can gather, socialize, and enjoy prepared meals. These conditions provide an established market for brands such as Ground Round Restaurants.
The total investment for a Ground Round Restaurants franchise ranges from $105,500 to $1.20 million. This range reflects different operating models, locations, property conditions, and development plans. An investment near $105,500 may support the conversion of an existing restaurant space, where the kitchen layout, utility connections, and dining area shell can reduce construction needs and help shorten the opening process. An investment reaching $1.20 million may apply to a new facility built from the ground up or to a major renovation in a premium location. That level of development can allow greater control over the restaurant design and its alignment with Ground Round Restaurants specifications and appearance. The investment range gives a prospective franchisee room to consider a smaller unit or a larger full service dining establishment, depending on available capital and the selected site.
Investment needs generally include leasehold improvements and construction for dining areas, kitchen infrastructure, restrooms, and exterior facades. These improvements must meet brand standards and local building codes. The restaurant also requires commercial ovens, fryers, griddles, refrigeration units, dishwashing systems, point of sale hardware and software, dining room furniture, fixtures, and smallwares such as cutlery, plates, and glassware. Opening inventory includes food, beverages, and operating supplies needed for the initial service period. Working capital is intended to cover early operating expenses during the first three to six months of operation. Those expenses may include rent, utilities, initial payroll for staff training and early operations, local marketing for grand opening awareness, and business licenses and permits required by local and state authorities. Legal and accounting fees during setup are also part of the overall financial planning. The broad investment range reflects the different costs associated with converting an existing restaurant, renovating a site, or developing a new facility. Capital must be allocated across the build out, equipment, inventory, opening expenses, and early operations so the location can begin service and continue through its initial operating period.
The Ground Round Restaurants operating model is intended to provide consistency across its 16 units. New franchisees receive initial training before opening that addresses back of house kitchen operations, food preparation standards, front of house service, inventory management, and marketing strategies. The training is designed for franchisees and key managers who will be responsible for meeting the brand’s quality and service expectations. Continuing support may include menu development updates, proprietary recipes, preparation methods, food safety guidance, and hygiene practices that meet or exceed industry regulations. Franchisees also receive help with supply chain management and may benefit from established vendor relationships and purchasing power that support ingredient quality and cost control.
Marketing and brand support can include prepared marketing materials, advertising campaigns, and local strategies for an individual Ground Round Restaurants location within its territory. Digital marketing tools, social media guidance, and public relations assistance are part of that support. Technology used in the model may include point of sale systems, inventory tracking software, and reporting tools for orders, sales, costs, and customer information. The franchisor may also provide field support through franchise consultants who conduct visits, performance reviews, and coaching. This guidance is intended to help franchisees address operating challenges, maintain brand standards, and identify growth opportunities. Communication across the franchise network allows operators to share practices and experience. Together, training, technology, supply chain assistance, marketing resources, and field support are designed to help each of the 16 units deliver a consistent product and guest experience.
In the broader full service restaurant sector, revenue can come from food sales, beverage sales, catering services, and merchandise sales. Revenue is affected by location, customer traffic, average check size, and table turnover. Visibility, accessibility, and local marketing can influence customer volume. Menu quality, culinary appeal, and service affect repeat business and word of mouth referrals. Labor is generally a significant operating expense, making staffing levels, scheduling, compensation, and employee retention important to financial results. Food and beverage costs require attention to purchasing, inventory control, supplier terms, bulk purchasing, and waste reduction. Occupancy costs include rent, utilities, and property maintenance, and vary with the location and facility size. Lease terms and energy efficient operations can affect these expenses. Marketing and advertising spending must be directed toward customer acquisition and retention through applicable brand campaigns and local efforts.
Pricing, portion control, inventory management, and food waste reduction can affect the bottom line. Seasonal menus and special promotions may help a restaurant respond to changing consumer preferences and economic conditions. The financial outcome of a Ground Round Restaurants franchise depends on the interaction of customer loyalty, operating efficiency, menu pricing, labor management, food costs, occupancy expenses, and the quality of the dining experience. A well managed location with a recognizable brand and efficient operations may achieve sustainable financial results, but performance depends on how consistently the franchisee applies the operating model and manages the restaurant.
Ground Round Restaurants has 16 units and a model that has been used across different geographic markets. That existing unit base indicates a concept that can be repeated beyond one location. Brand recognition and customer loyalty can help a franchise location attract diners who want a familiar and consistent experience, reducing some of the customer acquisition difficulty faced by an independent start up. The menu is designed to serve a broad group of customers by combining classic American comfort food with contemporary trends. It may appeal to families with children, casual diners, and groups of friends.
The system’s experience across multiple locations supports training, supply chain management, and ongoing operating assistance. Purchasing and marketing activity across the franchise system may provide economies of scale that an individual restaurant would not have on its own. Centralized procurement can affect ingredient and supply costs, while collective marketing can increase brand visibility. Consumers continue to value dining experiences and comfortable settings for social gatherings, areas that fit the Ground Round Restaurants format. The brand’s ability to adjust menu offerings and operating practices can help it respond to new trends. Its established customer base, repeated operating model, and full service positioning provide a basis for expansion into new territories, while competition and changing market conditions remain part of the operating environment.
An appropriate Ground Round Restaurants franchisee may be an individual or ownership group with business judgment, an interest in hospitality, and a commitment to daily operating standards. Prior full service restaurant experience is beneficial but is not always required because the system includes initial training and continuing support. A working understanding of financial management, marketing, and human resources is essential. Franchisees need leadership skills to hire, train, and manage kitchen and front of house employees. A customer focused approach is also necessary because service quality and the guest experience influence loyalty and repeat business. Local involvement can help an owner understand community dining preferences, participate in local marketing, and build awareness in the surrounding area.
Site selection is another major consideration. Potential territories may include densely populated suburban areas, busy commercial districts, or communities with a strong family demographic and consistent demand for full service dining. Residential neighborhoods, shopping centers, entertainment venues, and other community hubs can support visibility and access. Parking, access from major roads, local economic conditions, and consumer spending habits also matter. Market review may include demographic studies, competition assessments, and traffic pattern evaluations. The franchisor may assist with site review and territory decisions by applying experience from the existing 16 units. Location analysis, financial capacity, community involvement, and operating discipline all affect the prospects of a new establishment becoming a local dining destination.
Ground Round Restaurants has a Loan Activity Score of 29. Ground Round Restaurants offers an established brand name, an operating model developed over time, and a position in the full service restaurant sector. The market continues to be supported by demand for prepared food, varied menus, and social dining experiences. The investment range of $105,500 to $1.20 million creates different entry points and supports projects of different sizes. Franchisees can receive training, continuing support, supply chain resources, marketing guidance, technology, and operating practices intended to help manage the restaurant. Those resources may reduce some of the uncertainty involved in opening an independent restaurant, although they do not remove the financial and operating risks of the business. The opportunity is suited to buyers evaluating an established restaurant concept who understand the capital requirements, location factors, management responsibilities, and performance variables that affect a full service franchise.
Loan Activity Score
29/100
SBA Default Rate
17.4%
Active Lenders
13
According to its Franchise Disclosure Document or public business records, Ground Round Restaurants has 15 locations, all owned by franchisees. Public SBA loan records show 13 lenders made 23 loans to franchisees of Ground Round Restaurants. PeerSense calculates Ground Round Restaurants's score as 29 out of 100, using public SBA loan performance and recent lending activity.
15 locations
$105,500 to $1.2M
15
15 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Ground Round Restaurants
23
Total SBA loans
$676K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Ground Round Restaurants
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
17.4%
vs 10.3% peer avg
SBA Loans
23
Total Volume
$15.5M
Active Lenders
13
3 selective
States
12
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Ground Round Restaurants based on SBA lending data
SBA Default Rate
17.4%
7.1% above peer avg
SBA Loan Volume
23 loans
Across 13 lenders
Lender Diversity
13 lenders
Avg 1.8 loans per lender
Investment Tier
Significant investment
$105,500 to $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. The 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
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Ground Round Restaurants, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman