Ground Round pursues aggressive growth, overhaul

Ground Round Sports Grille

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Ground Round also is offering an upgraded menu featuring burgers, sandwiches, Mexican items, pasta dishes and salads. Hamburgers still account for about 26 percent of Ground Round’s sales mix, Crawford said, while alcoholic beverage sales comprise another 20 percent of total sales. The average per-person check is about $13, Crawford said.

The chain also has developed a second concept, called the Ground Round Sports Grille. The sports-themed operation has a smaller footprint and was designed for nontraditional sites, like airports and bowling centers, Crawford said. The menu is more streamlined too, with fewer entrées and more salads, appetizers and sandwiches.

While Ground Round was verging on extinction 10 years ago, business has been trending upwards in recent years, Crawford said. Ground Round generated 11 straight quarters of same-store sales gains. Since 2004 average unit volumes have risen from $1.4 million to nearly $1.9 million as the chain has made improvements to the concept and winnowed out lower-volume stores. Systemwide sales were about $43 million for 2012.

Ground Round Independent Owners Cooperative purchased the brand out of bankruptcy from former franchisor American Hospitality in 2004 for about $5 million. At the time, there were 59 company-owned units — all of which were closed by American Hospitality — and 72 franchised outlets. While about $3 million of the total sales figure was financed, the company has been debt free since April 2011, Crawford said.

Contact Paul Frumkin at paul.frumkin@penton.com.
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