Outback Steakhouse has begun a major overhaul after closing 21 restaurants nationwide in October, part of a broader effort to stay competitive in the casual dining market.
The closures, announced by parent company Bloomin’ Brands, mark the start of what it calls a “comprehensive turnaround strategy” aimed at modernizing operations and improving customer experiences.
In addition to the recent shutdowns, Bloomin’ Brands said 22 more locations across its three brands — Outback Steakhouse, Carrabba’s Italian Grill, and Bonefish Grill — will close over the next four years as leases expire.
While the company did not specify how many Outback restaurants were included in the initial 21 closures, its website lists about 670 US locations, roughly 10% fewer than a decade ago, CNN said.
The company will take a $33 million impairment charge tied to the October closures and expects to spend another $5 million to $7 million on severance and shutdown costs this quarter.
To fund the turnaround, Bloomin’ Brands has suspended its shareholder dividend and announced a $75 million investment over the next three years to enhance Outback’s menu, service, and dining atmosphere.
CLOSINGS: 🚫 After shuttering more than 40 locations last year, the parent company of Outback Steakhouse has closed another 21 U.S. restaurants in the last three months and decided not to renew the leases of an additional 22 U.S. restaurants. https://t.co/dfSKTI0odn pic.twitter.com/3OkxolLbt3
— Mouth by Southwest (@MXSW) November 6, 2025
Outback to Renovate All Locations by 2028
CEO Mike Spanos said the brand still holds strong potential. “Outback Steakhouse has incredible brand equity,” he told analysts Thursday.
“It is the pioneer of the casual steakhouse industry. We have strong brand awareness and a tremendous opportunity to convert that awareness into restaurant visits.”
As part of the plan, servers will now handle fewer tables per shift — four instead of six — to improve service quality.
All remaining Outback locations are scheduled for renovations by the end of 2028, featuring brighter interiors, redesigned bars, smaller kitchens, and expanded pickup areas to accommodate rising takeout demand.
According to the NY Post, the changes come after two challenging years for Outback. The chain’s same-store sales rose only 0.4% this quarter, the first positive growth in two years, while competitors have outpaced it.
Texas Roadhouse posted a 5.8% increase in same-store sales, and Darden-owned LongHorn Steakhouse reported a 5.5% rise.
Analysts say Outback must convince diners that its offerings are worth the price, as competitors attract customers with larger portions and value-driven promotions.
Bloomin’ Brands’ stock has dropped about 40% this year.
Originally published on vcpost.com
