Ground Round facts for kids
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| Casual dining restaurant | |
| Industry | Restaurants |
| Founded | October 25, 1969 |
Ground Round Grill & Bar is an American restaurant chain. It serves casual meals in a relaxed setting. The first Ground Round opened in Massachusetts in 1969. It was started by another famous company called Howard Johnson's.
Ground Round was first created to help improve some of Howard Johnson's restaurants that weren't doing well. It also opened as its own separate restaurants. After a big oil shortage in 1973, Ground Round became very important for Howard Johnson's. By 1985, Ground Round became its own company. At that time, it had 215 restaurants.
Later, in the 1980s and 1990s, Ground Round started to look old-fashioned. Other restaurants like Chili's and Applebee's became more popular. Ground Round also had a very large menu. The company had money problems from being sold many times. This meant they couldn't update their restaurants.
In 2004, the company had to file for Chapter 11 bankruptcy. This means they needed help with their money. About 60 of their company-owned restaurants closed. Then, a group of franchise owners bought the chain. These owners were from Freeport, Maine. At that time, Ground Round had 71 locations. Since then, the number of restaurants has become smaller. In 2021, there were only 15 locations left. Most of these restaurants are in the Midwest and Northeast parts of the United States.
The Story of Ground Round Restaurants
Ground Round started in 1969. It was created by Howard Johnson's. It was meant to be a chain of pubs with simple food. The idea was to change older Howard Johnson's spots into new Ground Round locations. After the 1973 oil crisis, Ground Round became very important. The company needed to focus on local people, not just travelers. By 1975, there were 64 Ground Round restaurants. This was more than their other restaurant concept, Red Coach Grill.
During the 1970s and 1980s, Ground Round was famous for its kids' parties. They would show silent movies and cartoons on a big screen. They also had a mascot named Bingo the Clown. Kids loved that they could get peanuts and just drop the shells on the floor!
Over 22 years, Ground Round had four different owners. When Howard Johnson's was sold in 1985, Ground Round stayed with a company called Imperial Group. Its main office moved to Weymouth. In 1986, Hanson Group USA bought Imperial. Three years later, International Proteins Corporation bought Ground Round for $93 million. At this time, the chain had 215 restaurants.
However, the menu had grown very large, with over 200 items. The restaurants and their decorations looked old. Ground Round started to lose customers. Other restaurants like Chili's and Applebee's became more popular. The many changes in ownership meant that money that could have updated the restaurants was used to pay off debts instead. Things like free peanuts and popcorn were stopped or reduced to try and make the chain seem more modern.
In 1997, Boston Ventures Management bought Ground Round. This happened after sales slowed down. The company tried to update its image in 2000. They made the menu smaller, from 300 items to 80. But they still had problems.
Ground Round's Financial Challenges
On February 13, 2004, Ground Round faced big financial trouble. All of the restaurants owned by the company, which was almost half of all Ground Rounds, suddenly closed. This happened very quickly. Many customers were surprised, even in the middle of their meals. The company that managed the Ground Round franchises, American Hospitality Concepts, filed for Chapter 11 bankruptcy on February 19.
Even though the franchised stores stayed open, their sales dropped. This was because many people thought all Ground Round restaurants had closed. A group of franchise owners decided to buy the company. They formed the Ground Round Independent Owners Cooperative, LLC. After the bankruptcy, Ground Round had 71 restaurants. Most of these were part of the new cooperative.
In 2011, the cooperative paid off the loans from buying the company in 2004. A new Ground Round opened in 2012. It was connected to a bowling alley in New Jersey. By 2013, there were 27 locations. The company wanted to open more restaurants in new areas. Most of the remaining restaurants were in the Upper Midwest and Northeast. By 2021, there were 15 locations. Ground Round tried to grow again by opening a new type of restaurant inside a Best Western hotel in Waterloo, Iowa. Some locations have closed as their owners retired or sold the buildings.
