Fans of the Bloomin' Onion and perfectly seared steaks were met with unwelcome news recently. Outback’s parent company abruptly closed 21 restaurants, a move that has left many wondering about the future of the popular Australian-themed steakhouse. This decision is part of a larger, more comprehensive turnaround strategy initiated by the restaurant's owner, Bloomin' Brands.
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| An Outback Steakhouse restaurant exterior, with the company's logo prominently displayed. |
The company, which also operates Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar, has been facing stiff competition in the casual dining sector. The recent closures are a direct response to these challenges, with the company aiming to revitalize the Outback brand and improve its overall financial performance.
A Closer Look at the Closures
The shuttering of these 21 locations was confirmed in a recent earnings report from Bloomin' Brands. While the company has not released a complete list of the shuttered restaurants, reports indicate that the closures have affected a mix of Outback Steakhouse, Carrabba's, and Bonefish Grill locations across the United States.
Some of the known Outback Steakhouse closures include locations in several states. Among those that have permanently closed their doors are restaurants in Birmingham, Alabama; Jacksonville Beach and Naples, Florida; Baton Rouge, Louisiana; Silver Spring, Maryland; Merrick, New York; and Madison, Wisconsin. For some of these locations, the only notice given was a sign on the door, leaving loyal customers and employees surprised.
The Strategy Behind the Shutdowns
So, why the sudden closures? According to Bloomin' Brands, this is a calculated business decision. The company conducted a thorough review of its restaurant portfolio and identified underperforming locations. A variety of factors were considered, including sales and traffic, the surrounding trade area, and the level of investment that would be needed to bring the restaurants up to current brand standards.
This move is part of a broader turnaround plan for which Bloomin' Brands is taking a $33 million impairment charge. In a clear signal of its commitment to this new strategy, the company has also suspended its shareholder dividend to help fund the initiative.
More Than Just Outback's parent company abruptly closed 21 restaurants
The 21 closures are just one piece of a larger restructuring puzzle. Bloomin' Brands also announced that it will not be renewing the leases on an additional 22 locations. These closures are expected to happen over the next four years as the current lease agreements expire.
This is not the first time Bloomin' Brands has made such a move. In February 2024, the company announced the closure of 41 underperforming restaurants. These recent actions indicate a continued effort to streamline operations and focus on the most profitable locations.
The Road Ahead for Outback
Despite the closures, Bloomin' Brands insists it is still confident in the Outback brand. The company is planning to invest $75 million over the next three years to revitalize the steakhouse chain. This investment will go towards a number of initiatives aimed at improving the customer experience and driving sales.
One of the key areas of focus will be the menu. Customers can expect to see new and improved steak offerings. The company is also looking to increase value propositions to attract diners who are becoming more selective with their spending. For more information on casual dining trends, you can explore resources from industry publications like Restaurant Business Magazine.
In an effort to enhance service, Outback is reducing the number of tables servers are responsible for from six to four. This will allow for more attentive and personalized service, a critical factor in today's competitive dining landscape. Additionally, all remaining Outback restaurants are slated to be renovated by the end of 2028. The new design will feature brighter interiors, redesigned bars, and expanded areas for pickup orders.
Impact on Employees and Future Openings
While the closures are a difficult but necessary step in the company's view, Bloomin' Brands has stated that it is working to relocate as many affected team members as possible to nearby restaurants. For those who cannot be relocated, severance packages will be provided.
It's important to note that this is not a sign that Bloomin' Brands is shrinking its overall footprint. In fact, the company plans to open 40 to 45 new restaurants across its portfolio in 2024. This demonstrates a strategic shift towards newer, more modern locations that are better positioned for long-term success.
Frequently Asked Questions
How many restaurants did Outback's parent company close?
Bloomin' Brands, Outback's parent company, abruptly closed 21 restaurants in October. This is in addition to 41 other locations that were closed earlier in 2024.
Which restaurant brands were affected by the closures?
The closures included a mix of Bloomin' Brands' restaurants, which include Outback Steakhouse, Carrabba's Italian Grill, and Bonefish Grill.
Why did Outback's parent company close these restaurants?
The closures are part of a larger turnaround strategy to address underperforming locations and focus on revitalizing the Outback brand. The decision was based on a review of factors like sales, traffic, and the investment required to update the restaurants.
Is Outback Steakhouse going out of business?
No, Outback Steakhouse is not going out of business. The company is investing heavily in a turnaround plan that includes menu improvements, enhanced service, and restaurant renovations. They are also planning to open new locations.
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