Outback Steakhouse parent company closes 41 underperforming restaurants
The parent company of Outback Steakhouse has closed dozens of restaurants across its portfolio which they considered underperforming locations.
Bloomin’ Brands, the parent company of Outback Steakhouse, has abruptly closed down 41 of its restaurants that it deemed to be underperforming.
The restaurant holding company also runs Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Aussie Grill.
Bloomin’ Brands CEO David Deno said they decided to shutter the branches after the periodic review of their assets. He said that most of the locations were some of their older holdings with leases running from the ‘90s and early 2000s.
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Outback Steakhouse hardest hit
The company said Outback Steakhouse suffered the most closures, which were triggered by factors such as having a dwindling number of customers and the high cost of renovating the restaurants.
They did not release a list of the locations they closed, although local media reports indicate that Outback restaurants in New Hampshire, Pennsylvania, and Hawaii have been shut down.
“Deciding to close a restaurant is never easy,” Bloomin’ Brands said in a statement to Centre Daily Times.
“This was a business decision and is not a reflection of the management or staff. We appreciate the community’s support for the past 24 years.”
The Florida-based company said that affected staff members will either transfer to other locations or receive a severance package.
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Outback Steakhouse parent company plans to open restaurants in 2024
Despite the closures, Outback said it intends to open up to 18 new restaurants in the country. Bloomin’ Brands plans to set up as many as 45 locations across its portfolio in 2024, and will increase its marketing budget by $20 million this year.
According to Nation’s Restaurant News, the holding company runs a total of 1,480 restaurants, including 688 Outback Steakhouses, 217 Carrabba’s Italian Grills, 176 Bonefish Grills, and 64 Fleming’s Prime Steakhouse & Wine Bars.