Outback Steakhouse’s parent company Bloomin’ Brand Inc. announced in a recent statement that they will be shutting down 41 locations across 8 states. The company explained that they made the business decision in an effort to improve earnings and reinvest in higher performing stores.
Outback Steakhouse is not the first major chain to fall victim to store closures. Red Lobster, Pizza Hut, and many more major U.S. chains have closed locations and fallen victim to bankruptcy amid rising inflation and operational costs.
The Decision to Close Locations
Bloomin’ Brands explained the decision to close some stores, “We periodically review our asset base and, in our latest review, we made the decision to close 41 underperforming locations. The majority of these restaurants were older assets with leases from the ’90s and early 2000s.”
There were a variety of factors that lent themseves to the decision including sales and traffic-trade areas. In other words, how far are customers willing to travel to a store? Another major factor was how much would need to be invested to improve the restaurants.
Outback Steakhouse Isn’t the Only Restaurant Affected
While Outback is perhaps the most popular chain name impacted by the closures, restaurants across Bloomin’ Brands portfolio will be shut down including Bonefish Grill, Carrabba’s Italian Grill and Fleming’s Prime Steakhouse & Wine Bar.
Outback Steakhouse is reportedly going to be hit the hardest according to CNN. Closures will occur in the following states: Pennsylvania, Illinois, Florida, Michigan, Ohio, Iowa, Hawaii, and New Hampshire.
Outback Steakhouse Plans for the Future
Despite the closures, Bloomin’ Brands CEO David Deno stated, “Our confidence in our portfolio remains high as we plan to open 40 to 45 new restaurants across the system in 2024.” In fact, many Outbacks will be recieving updated designs. In 2022, the company announced plans to “elevate the in-restaurant dining experience with a modern Aussie-inspired flare and devote more space to take-away, delivery and Outback’s newly launched nationwide catering program.”
According to Deno, the decision to close some locations was a difficult one, but one that was made in an effort to reinvest in successful locations. Additionally, Deno ensured that “This was a business decision that has no reflection on the staff or service.”
