Outback Steakhouse parent company Bloomin' Brands shutting down 41 restaurants
An Outback Steakhouse restaurant in the Brooklyn borough of New York, US, on Saturday, Feb. 10, 2024.
LOS ANGELES - Bloomin' Brands, which owns Outback Steakhouse and other popular restaurant chains, has announced they plan to close 41 "underperforming locations."
In an earnings call on Feb. 23, the company announced the closure of various brands, including Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s.
In the call, the company said Outback Steakhouse will be hit the hardest. The closures are apparently due to a variety of factors like slow customer traffic and sales.
The company did not immediately release a list of the closed restaurants and their locations.
Bloomin’ CEO David Deno also noted on the call that a "majority of these restaurants were older assets with leases from the ’90s and early 2000s."
"This decision considered a variety of factors including sales and traffic-trade areas and the investment that would have to be made to improve the restaurants," Deno said. "Despite this initiative, our confidence in our portfolio remains high as we plan to open 40 to 45 new restaurants across the system in 2024."
Despite the closures, Deno said the company plans to invest in an expansion.
Deno said Bloomin' plans to increase spending on its 2024 marketing strategy with a $20 million investment in television and digital advertising.
The company plans to address consumer's concerns on spending, Deno added.
"We also recognize the consumer may be more careful with their discretionary spending," Deno said. "Our current LTO, a three-course Aussie dinner for $16.99, offers the customer a great value. We will continue to be thoughtful of our approach to overall pricing and discounting. The ‘No Rules, Just Right’ campaign and the marketing investment are just the start of the work underway at Outback."