New York – Fans of the popular chain restaurant Outback Steakhouse were taken by surprise when the parent company, Bloomin’ Brands, announced the permanent closure of dozens of its locations across the United States. In an earnings call on Friday, the company revealed that 41 “underperforming locations” were shut down, including Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s.
The closures primarily affected Outback Steakhouses, as Bloomin’ Brands cited reasons such as declining sales, decreasing customer traffic, and the high cost of necessary investments to improve the locations. Bloomin’ CEO David Deno mentioned that many of the closed restaurants were older assets with leases dating back to the ’90s and early 2000s.
Although the company did not release a specific list of closed restaurants, reports indicated that Outback locations in Pennsylvania, Iowa, and Hawaii, as well as Bonefish Grill locations in New Jersey and Virginia, were among those shuttered. Additionally, several Carrabba’s locations in New York also closed as part of the 41 closures across the brands owned by Bloomin’ Brands.
A spokesperson from Bloomin’ Brands acknowledged that closing restaurants was a challenging decision but reassured that it was a business move and did not reflect poorly on the staff or their service. The company planned to offer transfer opportunities to many team members to other open positions at different restaurants and provide severance packages to employees who could not be accommodated.
Looking ahead, Outback Steakhouse announced plans to open up to 18 new restaurants in the US this year, showcasing a redesigned layout introduced in 2022. With around 700 locations nationwide, the chain remains optimistic about its future growth despite the recent closures.
Sales for Outback in the fourth quarter experienced a slight decline of 0.3%, while Bonefish saw a 3% decrease. On the bright side, Carrabba’s reported a 2.5% increase in same-store sales. The stock price for Bloomin’ Brands saw a rise of more than 6% in the past five days, reaching over $28 at one point. The company has ambitious plans to open as many as 45 restaurants across all its brands in the coming year, showing a commitment to growth and expansion in the competitive restaurant industry.