Outback Steakhouse Closes 21 Locations in Nationwide Turnaround Plan

NEW YORK — Outback Steakhouse‘s parent company, Bloomin' Brands, announced the closure of 21 restaurant locations in October as part of its new turnaround strategy aimed at revitalizing the brand. This decision follows a significant decline in sales and shares this year, prompting the company to implement urgent cost-cutting measures.

In a recent earnings report, Bloomin’ Brands disclosed that an additional 22 locations across its portfolio, which includes Carrabba’s Italian Grill and Bonefish Grill, will also close over the next four years as their leases expire.

A spokesperson for the company did not reveal the specific locations of the closed Outback restaurants. Currently, Outback operates around 670 locations in the United States, representing about a 10% decrease from its peak of approximately 750 establishments a decade ago.

To navigate this challenging phase, Bloomin’ Brands plans to take a $33 million impairment charge related to the closures and has suspended shareholder dividends to direct funds towards the turnaround plan. The three-year strategy includes a $75 million investment geared toward enhancing the restaurant’s menu and overall customer experience.

CEO Mike Spanos emphasized the brand’s potential by stating, “Outback Steakhouse has incredible brand equity. We have strong brand awareness and a tremendous opportunity to convert that awareness into restaurant visits.”

The turnaround plan will also see all remaining Outback restaurants receive renovations by the end of 2028. Enhancements will include new interiors, upgraded bar areas, and improved kitchen layouts to adapt to rising demand for takeout.

Despite showing early signs of stabilization with a slight sales increase of 0.4% in the latest quarter, Outback Steakhouse faces intense competition. Texas Roadhouse and LongHorn Steakhouse reported stronger same-store sales growth, highlighting the casual dining sector’s struggles.

Overall, analysts suggest that Outback must convince consumers that its offerings provide good value amidst fierce competition from chains promoting larger portion sizes and value promotions.