Outback Steakhouse is set to close over 40 of its restaurants as part of a strategy aimed at improving the financial health of the company. This announcement was made during the earnings report of Bloomin’ Brands, the parent company of the popular dining chain.
Earlier this month, the chain had already closed 21 locations and plans to let leases expire for an additional 22 sites within the next four years. However, Bloomin’ did not disclose specific restaurant locations that will be closing. Currently, Outback Steakhouse operates 679 locations across the United States as of September 29.
The closures are part of Bloomin’s broader effort to reinvigorate Outback’s declining business. The company is focusing on reducing expenditures in areas that do not directly enhance the customer experience while also working to mitigate its debt levels. In addition to financial adjustments, Outback is investing in enhancing the dining experience, including facility upgrades and staff training, aiming to attract both new and returning customers.
This move reflects a wider trend in the restaurant industry, where various chains are reevaluating their operations. For instance, Red Robin is contemplating the closure of up to 70 locations, while Tex-Mex chain On the Border has closed numerous restaurants as part of bankruptcy measures. Hooters has also shut down over 30 locations this year, alongside Wahlburgers, which closed 79 restaurants situated within Hy-Vee grocery stores, leaving it with 34 remaining locations.
As the restaurant sector adapts to changing consumer preferences and economic challenges, Outback Steakhouse is taking proactive steps to redefine its brand and enhance customer satisfaction, which could potentially lead to a brighter future for the chain.