Outback Steakhouse Closes 21 Locations, Implements Turnaround Plan

New York, NY — Outback Steakhouse‘s parent company, Bloomin’ Brands, announced the closure of 21 restaurants across the United States in October as part of a comprehensive turnaround strategy aimed at reversing declining performance.

In an earnings report released Thursday, the company revealed that in addition to the newly closed locations, it will not renew leases for 22 additional restaurants over the next four years. A company spokesperson did not disclose the specific locations that have shut down. Currently, Outback operates about 670 locations, which is roughly 10% fewer than a decade ago.

To support the turnaround, Bloomin’ Brands will incur a significant financial charge of $33 million related to the closures. The company has also suspended its shareholder dividend to allocate funds for its turnaround efforts. CEO Mike Spanos emphasized the importance of the turnaround plan during a call with analysts, 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 involve a $75 million investment over the next three years, focusing on improving menu quality and enhancing customer service. Initiatives include introducing new steak options, increasing value offerings, and reducing the number of tables each waiter serves, with a shift from six to four tables.

All remaining Outback locations are expected to undergo renovations by the end of 2028, featuring brighter interiors, redesigned bars, and upgraded pickup areas to meet rising demand for takeout. Despite these efforts, Outback’s same-store sales have been stagnant, with a slight increase of only 0.4% in the last quarter.

In comparison, other chains such as Texas Roadhouse and LongHorn Steakhouse reported stronger sales growth, with increases of 5.8% and 5.5%, respectively. Analysts note that the competitive landscape remains challenging for Outback as diners become more selective and gravitate towards perceived value from rival chains.