Steakhouse Chain Shutters Dozens of Locations
The popular Outback Steakhouse chain is set to shutter over 40 locations across the United States. This decision is part of a strategic initiative by Bloomin’ Brands, the parent company, aimed at revitalizing the chain’s financial health.
Details of the Closures
According to a recent earnings report, Outback Steakhouse has already closed 21 restaurants as of October and plans to not renew leases for an additional 22 locations. These lease expirations are scheduled over the next four years. Currently, Outback operates 679 locations in the U.S.
Financial Turnaround Strategy
- Implementing expense reductions in non-customer-facing areas.
- Prioritizing debt reduction efforts.
- Investing in facilities and staff to enhance guest experiences.
The closures are part of a larger turnaround strategy aimed at reviving Outback’s declining market presence. The company is focused not only on financial stability but also on reshaping its image to attract both new and returning customers.
Industry Context
Outback’s situation is not unique. Other restaurant chains are similarly reducing their footprint to adapt to changing market conditions:
- Red Robin is evaluating the closure of up to 70 locations, with 10 to 15 scheduled for 2025.
- On the Border is undergoing bankruptcy proceedings, leading to widespread closures.
- Hooters closed more than 30 outlets this year as part of brand restoration efforts.
- Wahlburgers shut down 79 restaurants inside Hy-Vee grocery stores, leaving just 34 locations nationwide.
These closures highlight a growing trend among restaurant chains as they strive to stabilize their operations in uncertain economic times. As Outback Steakhouse continues to implement changes, its future strategy aims to build a stronger, more sustainable brand.
