Outback Steakhouse is a famous restaurant known for its relaxed dining with an Australian theme. But recently, news came out that the company owning Outback, Bloomin’ Brands, is shutting down some of its locations.
This article will explain why this is happening, what it means for the future, and what you can expect. The goal is to make sure everyone understands this important news.
The Surprise of Closing Many Restaurants
The news that Outback Steakhouse is closing many restaurants surprised a lot of people. In February 2024, Bloomin’ Brands, which also owns Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse, announced a tough choice.
During their financial meeting, they shared that 41 locations will be closed across the country. Most of these locations are Outback Steakhouse restaurants.
Why Are These Restaurants Closing?
There are several reasons why these restaurants are closing, and it wasn’t an easy decision. David Deno, the CEO of Bloomin’ Brands, said they reviewed all their restaurants.
Some of them were not doing well. This means they were not making enough money, and not many people were visiting them.
Many of the locations being closed are old, with leases from the 1990s or early 2000s. Fixing these restaurants would cost a lot of money. The company decided it wasn’t worth spending on improving these places.
Which Locations Are Closing?
Although Bloomin’ Brands didn’t give a full list of which restaurants are closing, news reports have mentioned some locations.
Outback Steakhouse restaurants in Pennsylvania, Iowa, Hawaii, and Florida have already closed. In Michigan and Ohio, more than one location has been shut down.
Other restaurants from Bloomin’ Brands like Carrabba’s Italian Grill and Bonefish Grill have also closed some locations. For example, Bonefish Grill restaurants in New Jersey and Virginia were affected.
The closing of these locations will make many regular customers sad, but the company believes it is the right choice for their future success.
How Does This Affect Bloomin’ Brands’ Money?
Closing these restaurants will affect Bloomin’ Brands’ finances. Shutting down the 41 restaurants will cause the company to lose about $100 million in 2024. This is a big number, but the company thinks it’s better to close the restaurants that aren’t doing well and focus on improving the ones that are.
Even though they will lose some money, Bloomin’ Brands is still hopeful about the future. They plan to open 40 to 45 new restaurants in 2024, showing they are still focused on growing.
What Happens to the Employees?
Whenever a business closes, people naturally worry about the workers. In this case, many employees from the closing Outback Steakhouse locations have the chance to move to other restaurants owned by Bloomin’ Brands. This means they could work at Carrabba’s, Bonefish Grill, or other Outback locations.
For workers who can’t transfer to other places, the company is offering them severance pay. This will help them financially as they look for new jobs.
What’s Next for Outback Steakhouse?
Even though some locations are closing, Outback Steakhouse is not going away. The company has big plans for the future. As mentioned, Bloomin’ Brands will open up to 45 new restaurants in 2024, which shows they are still positive about growing.
They also plan to spend more on advertising. The company said it will pay $20 million more on ads in 2024, using TV and digital ads to bring more people to their restaurants.
Special Deals to Bring in More Customers
One of the ways Outback Steakhouse plans to bring in more customers is by offering special deals. They have started offering a three-course Aussie dinner for $16.99. This affordable price is meant to attract customers who are careful about their spending.
By offering good deals, Outback hopes to bring more people into their restaurants and boost sales in the places that are still open.
Focus on Takeout and Catering
Another part of Outback Steakhouse’s plan is to focus more on takeout and catering. During the pandemic, many people chose takeout instead of eating in a restaurant. Outback Steakhouse was one of the first to offer takeout, and they still see high demand for it.
24% of Outback’s total sales in the last part of 2023 came from takeout and delivery. Catering is also popular, especially at Carrabba’s Italian Grill. By focusing on these services, Bloomin’ Brands hopes to keep growing sales outside of regular dining.
The Future of Bloomin’ Brands
Bloomin’ Brands is looking ahead, not just with Outback Steakhouse, but with all of its other restaurants. They also own Fleming’s Prime Steakhouse and Aussie Grill, a fast-casual chain. Even though they are closing some locations, they are still optimistic about the future of the company.
CEO David Deno has said that while some restaurants have closed, the company is still strong and ready to grow in the next few years.
Consumer Spending Habits
One challenge for restaurants like Outback Steakhouse is how customers are spending their money. People are being more careful with how they spend, which means fewer people might be eating out. But Bloomin’ Brands thinks their pricing and special deals will help keep customers coming back.
They also know that people’s preferences are changing. More people are ordering takeout, and Bloomin’ Brands is adapting to these new habits. This flexibility is helping Outback Steakhouse stay competitive in a changing market.
Conclusion
To sum up, the decision to close 41 Outback Steakhouse locations is part of Bloomin’ Brands’ bigger plan to focus on the restaurants that are doing the best. While this is sad news for customers in the areas affected, it’s clear that the company is working on a long-term plan for success. With plans for new locations, more advertising, and a focus on takeout, Outback Steakhouse is preparing for a strong future.
Although the closures will hurt in the short term, Bloomin’ Brands believes their strategy will help them grow in the long run. For fans of Outback Steakhouse, this means the restaurant will continue to serve its famous Australian-inspired food for years to come.
