Surprise Closures of Outback Steakhouse Locations: A Business Decision by Bloomin’ Brands
Outback Steakhouse fans may be dismayed to discover that their local branch has permanently shut down, following the unexpected closure of several dozen Outback Steakhouse locations across the United States. The parent company, Bloomin’ Brands, announced in an earnings call on February 17, 2023, that it had shuttered 41 “underperforming locations” spanning the brands under its umbrella, including Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s.
Underperforming Locations: Why the Closures?
During the earnings call, Bloomin’ Brands CEO David Deno explained that these closures were a result of a multitude of factors. These factors encompassed sales figures, dwindling customer traffic, and investments that proved too costly for upgrading the locations. Moreover, Deno mentioned that the majority of these restaurants were older assets with leases dating back to the ’90s and early 2000s.
Impact on Brands: Which Locations Were Closed?
Bloomin’ Brands declined to release an exhaustive list of the closed locations. However, local news reports suggest that Outback Steakhouses in Pennsylvania, Iowa, and every Outback restaurant in Hawaii have recently closed their doors. Additionally, Bonefish Grill locations in New Jersey and Virginia as well as at least three Carrabba’s locations in New York have shuttered.
Closing Restaurants: Employees and Opportunities
“Closing restaurants is never easy,” a spokesperson for Bloomin’ Brands stated in a statement to media outlets. “This was a business decision that has no reflection on the staff or their service. Many team members will have the opportunity to transfer to open positions at another restaurant. Employees who do not will receive severance.”
New Beginnings: Expansion Plans for Outback Steakhouse
Despite the closures, Outback Steakhouse remains optimistic about growth in the US market. The company plans to open as many as 18 new restaurants this year featuring a redesigned restaurant layout unveiled in 2022. With approximately 700 locations across the United States, Outback remains committed to expansion.
Financial Performance: Sales Trends in Q4 2022
Fourth-quarter sales at Outback Steakhouse and Bonefish Grill saw a decrease in sales, with Outback reporting a 0.3% decline, while Bonefish experienced a more significant dip of 3%. However, Carrabba’s emerged as a bright spot, with same-store sales increasing by 2.5%. The stock price for Bloomin’ Brands surged more than 6% in the past five days, topping $28 at one point.
Expansion Plans: Bloomin’ Brands’ Growth Strategy
Overall, Bloomin’ Brands aims to open as many as 45 new restaurants across all its brands in the coming year.
Additional Information: TGI Fridays’ Closures
Related article: TGI Fridays abruptly closes 36 restaurants. See the list.
