The parent company of Outback Steakhouse, Bloomin’ Brands, has announced plans to close over 40 locations of the popular casual dining chain. This decision comes as part of a broader strategy to reduce losses and streamline operations amid rising expenses and a changing economic landscape.
Following its 2025 Q3 financial report, Bloomin’ Brands revealed its intention to temporarily halt dividends to free up cash for critical investments in the remaining restaurants. This strategy aims to bolster the performance of the flagship brand while eliminating underperforming units.
Details on the Closures
The closures will include 21 locations shutting down immediately, with an additional 20 restaurants closing as their leases expire. This move reflects the company’s focus on enhancing the profitability of the remaining 600+ Outback Steakhouse locations.
The decision to close these locations indicates a shift in strategy for Bloomin’ Brands, which has traditionally been committed to maintaining a robust presence in the casual dining sector. By concentrating on stronger units, the company hopes to ensure that the remaining restaurants can provide improved service and customer satisfaction.
Investments in the Future
While the closures may signal a challenging period ahead, they also pave the way for significant investments in the remaining Outback Steakhouse locations. The company plans to invest millions in enhancing steak quality, improving service, and upgrading restaurant interiors.
Changes are set to be implemented across all remaining locations by 2028. Customers can anticipate better food quality, refreshed dining environments, and enhanced marketing strategies designed to attract new patrons.
The company’s approach aims to create a more enjoyable dining experience, emphasizing quality and service. Although these enhancements may take time to yield noticeable results, they represent a crucial investment for the long-term success of the Outback Steakhouse brand.
As Bloomin’ Brands navigates these changes, the focus will be on ensuring that the remaining restaurants not only survive but thrive in a competitive market. The outcome of this turnaround strategy will determine the future trajectory of Outback Steakhouse and its ability to maintain its status as a favorite among diners.
