Additional Coverage:
- Outback Steakhouse Closes 21 Locations With More on the Way (Is Your Spot at Risk?) (financebuzz.com)
Outback Steakhouse Is Shrinking: What Diners Need to Know
Outback Steakhouse, a beloved destination for birthdays and dependable comfort food, is quietly undergoing a significant transformation. Its parent company, Bloomin’ Brands, has already closed nearly two dozen U.S. restaurants and plans dozens more closures over the next few years. This leaves many loyal diners wondering: Is my local Outback at risk?
The Closures So Far
Bloomin’ Brands confirmed that 21 of its U.S. restaurants, encompassing brands like Outback, Bonefish Grill, and Carrabba’s Italian Grill, were shuttered in October. The exact number of Outback Steakhouse locations affected remains undisclosed, and the company has not released a full list of addresses. This lack of transparency has left many customers in the dark, with some confirmed closures occurring in Outback’s home state of Florida.
Why the Shutdowns?
These closures are part of a strategic effort to address underperforming restaurants rather than a sudden collapse. Bloomin’ Brands states that many of the shuttered locations were older, high-cost stores that no longer met customer expectations or traffic patterns. The casual dining landscape has become increasingly competitive, with diners opting for more affordable or modern experiences, a trend Outback has struggled to keep pace with.
More Closures on the Horizon
Beyond the initial 21 closures, Bloomin’ Brands plans to not renew leases for an additional 22 U.S. restaurants across its brands, including Outback. These closures are expected to unfold gradually over the next four years, indicating a long-term strategy to trim weaker locations as leases expire. This measured approach, however, means ongoing uncertainty for customers about which restaurants might quietly disappear.
Outback’s Current Footprint
Despite the closures, Outback remains a substantial national chain, with approximately 679 U.S. locations still operating as of September 2025. This figure represents a roughly 10% decline from a decade ago, highlighting a long-term trend of contraction rather than recent rapid shrinkage.
Financial Performance: A Mixed Bag
Financially, Outback’s parent company reported mixed third-quarter results. Bloomin’ Brands saw year-over-year revenue growth but also posted a quarterly net loss, partly due to $33 million in impairment and closure charges.
Outback’s same-store sales grew by a modest 0.4%, significantly lagging behind competitors like LongHorn Steakhouse and Texas Roadhouse, which reported sales growth above 5%. This disparity underscores the pressure on Bloomin’ Brands to implement changes swiftly.
A Turnaround Strategy in Motion
In a notable move, Bloomin’ Brands has suspended its shareholder dividend, redirecting those funds to pay down debt and finance renovations and operational improvements. This signals a serious commitment to long-term stability and competitiveness.
The closures are just one component of a broader turnaround strategy for Outback. Bloomin’ Brands plans to invest millions of dollars over the next three years to refresh menus, enhance service, and renovate restaurants. Key initiatives include emphasizing steak quality, simplifying menus, offering more value-focused deals, and reducing the number of tables per server to improve both the dining experience and employee retention.
Renovations for Remaining Locations
Nearly all remaining Outback locations are slated for renovation by the end of 2028. These redesigned restaurants will feature brighter interiors, updated bars, and layouts optimized for takeout and pickup orders. This indicates that Bloomin’ Brands is not abandoning Outback but rather betting on a smaller, more modern footprint.
What Customers Can Expect
While longtime fans may mourn the loss of familiar dining rooms or convenient locations, Bloomin’ Brands hopes customers will experience improved service, enhanced food quality, and clearer value pricing. Whether these improvements will be enough to win back diners remains to be seen.
The Bottom Line
Outback Steakhouse is not vanishing, but it is undoubtedly shrinking and adapting. For diners, this means a potential shift in the dining landscape, with fewer locations but a possibly revamped experience at those that remain. The closures serve as a stark reminder that even well-established brands are feeling the economic pressures and are adapting to remain competitive in today’s evolving market.