Outback Steakhouse’s parent company closes 41 ‘unprofitable’ restaurants

new york
CNN
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Fans of Outback Steakhouse may be surprised to see their local restaurant closed for good after the chain’s parent company abruptly shuttered dozens of locations across the United States.

Bloomin’ Brands said in an earnings call Friday that it has closed 41 “unprofitable” stores across its brands, including Carraba’s Italian Grill, Bonefish Grill and Fleming’s.

Outback Steakhouse was hardest hit by the closure, the company said on a conference call. Bloomin’ said it closed the stores due to “a variety of factors,” including declining sales, foot traffic and financial investments that would be too costly to improve the stores. Additionally, “the majority of these restaurants were older properties that he had leased from the ’90s to the early 2000s,” said Bloomin’ CEO David Deno.

The company did not release a list of closed restaurants. Outback stores in Pennsylvania and Iowa, as well as all Outback restaurants in Hawaii, recently closed, according to local reports. Bonefish Grill locations in New Jersey and Virginia have also closed, as have at least three Carrabba locations in New York.

A Bloomin’ spokesperson told Nation’s Restaurant News that 33 restaurants had closed Friday, of the 41 restaurants closed across all brands.

“Closing a restaurant is never easy,” a company spokesperson said in a statement to CNN. “This was a business decision that did not reflect on our staff or their service. Many team members have the opportunity to move to open positions at another restaurant. Employees who do not comply will be subject to severance pay. You will receive it.”

But Outback said it plans to open up to 18 new restaurants in the U.S. this year, reflecting the redesigned restaurant layouts it unveiled in 2022. The company has approximately 700 stores in the United States.

Outback sales struggled in the fourth quarter, down 0.3%, and Bonefish sales were down 3%. Carabaz was actually a bright spot, with same-store sales up 2.5%. Bloomin’ stock price has risen more than 6% over the past five days, at one point exceeding $28.

Bloomin’ plans to open a total of 45 restaurants across its brands next year.