Outback Steakhouse Closing Restaurants: A Detailed Insight
Bloomin’ Brands, the parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar,
Bloomin’ Brands, the parent company of Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar, and Aussie Grill, has recently made a big business decision.
The company has closed 41 restaurants from its large group. This decision was confirmed by a spokesperson and reported by Nation’s Restaurant News on February 23.
During a call with analysts, Bloomin’ Brands CEO David Deno said the goal was to eliminate below-average business performance.
The company regularly reviews its asset base, and the decision to close these underperforming locations was part of that process. Most of the closed restaurants were older assets, many with leases from the ’90s and early 2000s.
Factors Behind the Decision
Several factors led to the closures, including sales performance and traffic-trade areas. Changes in customer behavior and the business location were also important.
People travel and visit restaurants differently now, affecting the overall performance of these places. Despite these closures, the brand plans to open 40 to 45 new restaurants in 2024, according to the spokesperson.
Impact on Employees and Operations : Outback Steakhouse Closing Restaurants
The affected locations were officially closed on February 23. This includes several Outback locations, as well as Carrabba’s and Bonefish Grill.
The decision to close these restaurants is seen as a strategic business decision and a response to changing market conditions.
The company has assured that staff and service team members from these locations will be given chances to transfer to open positions at other restaurants in the chain.
For some employees, severance packages will be provided. A list of stores affected includes various Outback locations in Florida, Iowa, Illinois, Michigan, Ohio, Pennsylvania, Hawaii, and New Hampshire.
Additionally, Bonefish Grill locations in New Jersey and Virginia and Carrabba’s in New York were also closed.
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Financial Outlook and Future Plans
Even with the closures, Bloomin’ Brands is investing $20 million in 2024 to boost traffic through better marketing efforts, including television and digital advertising.
The company aims to increase carryout and to-go orders, which are now a big part of its business. In the last quarter, the company earned $43.3 million, although this was down from $58 million last year.
These drops in sales percentages reflect bigger challenges in the industry. While same-store sales for company-owned restaurants showed a combined 0.2% decline, Carrabba’s saw a 2.6% increase.
Brand Presence and Location Breakdown: Outback Steakhouse Closing Restaurants
As of March 1, Bloomin’ Brands operates 1,450 restaurants across 47 states, Guam, and 13 other countries. This includes 673 Outback Steakhouses in the U.S. alone.
The location breakdown is available on the Outback website, offering detailed insights into their distribution and future expansion plans.
