Franchise News

Outback Steakhouse Closes 30-Year-Old Restaurant, Owner Cites Losses and Future Closures

Feb 27, 2024 04:43 AM EST | By Jep Collins

(Photo : Pexels/GonzaloGuzman)

Outback Steakhouse has shut its doors for good after serving customers for 30 years.

This move follows a warning from David Deno, the owner of the restaurant's parent company, who announced that several other locations would also be closing down.

Outback Steakhouse Closes, Company Announces More Shutdowns

Notices at the Outback Steakhouse on 3527 Union Deposit Road in Susquehanna Township have confirmed its closure, directing diners to visit their other locations at the Capital City Mall in Lower Allen Township and West Manchester Township, York County.

Bloomin' Brands, the parent company of Outback, revealed this Friday that it will shut down 41 restaurants that are not performing well. This announcement was made in a report by Nation's Restaurant News.

Bloomin' Brands also operates Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, and Aussie Grill by Outback.

Deno, the head of the company, has declared that 41 restaurants that aren't doing well will soon close their doors.

Leaders explained during a company earnings call that the restaurants selected for closure are mostly older locations that have not been performing up to expectations.

"These locations are primarily older ones with leases dating back to the 1990s and early 2000s," Deno noted.

He emphasized that the closures do not reflect the staff's efforts or performance.

Company leaders have announced they aim to complete the shutdown of specific locations by the end of the first quarter.

Also Read: Bittersweet Farewell: Crumbl Cookies Closes Shop in Southern California

Company Faces Closures and Future Openings

(Photo : Pexels/ValeriaBoltneva)

Shutting down restaurants is always a tough decision," a spokesperson for the company told CNN. "This decision was strictly business and does not reflect on our staff or their dedication. Many of our team members will be allowed to move to other locations.

Those who can't will be provided with severance packages."

Despite the closures, Outback is optimistic about its expansion plans, aiming to introduce up to 18 new locations in the U.S. this year. These new outlets will feature a redesigned layout first introduced in 2022. Currently, Outback boasts around 700 establishments across the country.

The last quarter saw a slight dip in sales for Outback, with a 0.3% decrease and a more noticeable drop of 3% at Bonefish Grill. On the brighter side, Carrabba's Italian Grill experienced a growth in same-store sales by 2.5%. Bloomin' Brands, the parent company, has seen its stock price climb over 6% in the past week, reaching a high of $28.

Bloomin' Brands will open as many as 45 new restaurants under its various brands in the next year.

Outback Steakhouse, a familiar presence in Hawaii for over twenty years, has unexpectedly shut down its last restaurants in the state earlier this month.

The closures surprised both industry insiders and employees, with staff members claiming they were informed at the very last minute. One employee from the Waipio branch mentioned that the team was given merely a few days' notice.

Additionally, an Outback Steakhouse in State College, Pennsylvania, has recently closed its doors, as reported by WJAC-TV, an NBC affiliate. A sign on the door advises customers to visit their Altoona location instead.

Related Article: Outback Steakhouse's Final Days in Hawaii Draw Emotional Goodbyes

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