Outback Steakhouse Closes Over 40 Restaurants, 21 Already Shut

Outback Steakhouse is set to close over 40 locations as part of a strategy to improve its financial performance. This decision comes on the heels of an earnings report released by its parent company, Bloomin’ Brands, on Thursday.

Details of the Closures

In October, Outback Steakhouse already shut down 21 restaurants. The chain also plans not to renew leases for an additional 22 locations. These leases are expected to expire over the next four years. Currently, there are 679 Outback Steakhouse locations across the United States.

Reasons Behind the Closures

The closures form part of a wider turnaround strategy initiated by Bloomin’. Faced with declining sales, the company aims to streamline operations by cutting expenses in areas that do not directly enhance the guest experience. Furthermore, they are focusing on reducing debt.

Improvements and Rebranding Efforts

Alongside financial adjustments, Outback Steakhouse is investing in its facilities and staff. The aim is to enhance customer experience and revamp the brand image to draw in both new and returning customers. This approach is crucial as many restaurant chains face similar challenges.

Broader Context in the Restaurant Industry

Outback Steakhouse’s closures are not isolated. Other restaurant chains are also scaling back operations. Earlier this year, Red Robin explored shutting down 70 locations, with a few expected to close in 2025. Similarly, the Tex-Mex chain On the Border has closed restaurants nationwide due to bankruptcy proceedings. Hooters and Wahlburgers also faced substantial closures, with Hooters shutting over 30 restaurants and Wahlburgers closing 79 locations inside Hy-Vee grocery stores, leaving them with just 34 outlets nationwide.

As the restaurant industry continues to adapt, Outback Steakhouse’s strategic shifts will be crucial for its survival and growth.