The iconic Australian-themed steakhouse chain that brought Bloomin’ Onions to America is facing tough times. In a surprising move, Outback Steakhouse’s parent company announced the closure of 41 restaurants across its portfolio, with the steakhouse brand bearing the brunt of these shutdowns.
Eight states lose their neighborhood steakhouse
The restaurant closures span across Pennsylvania, Illinois, Florida, Michigan, Ohio, Iowa, and most notably, Hawaii and New Hampshire, where no locations remain. These shuttered locations primarily consist of older establishments with leases dating back to the 1990s and early 2000s.
What makes this particularly significant is the chain’s deep roots in these communities. Many of these restaurants have served their neighborhoods for over two decades, becoming local landmarks where countless celebrations and family dinners took place.
A simplified menu marks a new direction
In response to declining sales and foot traffic, new CEO Mike Spanos has announced plans to streamline the menu. The strategy focuses on returning to the restaurant’s core strengths: steak and seafood with an Australian twist. Rather than attempting to please everyone, the chain aims to perfect what it does best.
This strategic shift raises an interesting question: Would you rather have a restaurant that does everything adequately or one that excels at a few signature dishes?
Modern technology meets traditional dining
Despite the closures, Outback isn’t throwing in the towel. The chain has ambitious plans to open 40 to 45 new restaurants across its system in 2024. These new locations will feature a smaller footprint, enhanced technology, and modernized interiors while maintaining the familiar Australian theme.
The redesigned restaurants will emphasize both dine-in experiences and off-premises services, including takeout, delivery, and catering options. This hybrid approach reflects a significant shift in consumer behavior since the pandemic.
Rising costs impact both chain and customers
The company reports that renovating older locations would require substantial investments, which couldn’t be justified given current sales and traffic patterns. To attract budget-conscious diners, Outback has introduced value-driven options like their $14.99 three-course meal.
However, balancing affordable prices with quality ingredients presents a significant challenge. The restaurant industry’s profit margins are notoriously thin, and with rising food costs, maintaining this balance becomes increasingly difficult.
The next few months will be crucial for Outback Steakhouse. As the chain navigates these changes, its success may determine whether other casual dining chains follow similar paths of consolidation and modernization. For now, loyal customers in affected areas will need to find new spots for their steak dinners, while the brand works to prove it can adapt and thrive in today’s challenging restaurant landscape.
