Which Outback Steakhouse locations are closing down across the US? Reason explored as CEO weighs in on mass closure

In recent weeks, Outback Steakhouse stores have suddenly begun closing all over the country. According to outlets like Omaha, the brand disclosed the information on an earnings call on Friday, February 23, 2024.

Bloomin' Brands, the parent company, also said it has decided to close 41 of its "underperforming locations" across the nation, including Fleming's, Bonefish Grill, and Carrabba's Italian Grill.

According to additional information from Omaha, 33 of these locations have already been closed down. The majority of the closures will affect the well-known Outback Steakhouse restaurant.

The list of closed restaurants was not made public by the firm. However, sources like WSMV indicate that Outback restaurants in Hawaii, Iowa, and New Hampshire have just closed. In addition, two Outback restaurants in Pennsylvania also closed down, one in Harrisburg and one in State College.

At least three Carrabba's locations in New York also closed down, along with the Bonefish Grill sites in Virginia and New Jersey. Moreover, according to The US Sun, an Idaho Bonefish Grill closed its doors this month.

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Some locations of Outback Steakhouse and other brands of Bloomin’ Brands are closing down in USA

Outback Steakhouse hasn't revealed the proper list yet (Image via Facebook / Outback Steakhouse - National)

According to Omaha, the parent company of Outback Steakhouse, Bloomin' Brands disclosed the details during a call with the investors on Friday, February 23, 2024. Outback Steakhouses were most affected by the shutdown, the business stated on the call.

In addition, Bloomin' stated that a "variety of factors," such as declining revenues, dwindling foot traffic, and excessively expensive capital expenditures to upgrade the facilities, were the reasons behind the closures.

In the same call, Bloomin' Brands CEO David Deno said that Outback is not the only company affected by the shutdowns. Companies like Fleming's, Bonefish Grill, and Carrabba's Italian Grill are also affected. These companies are all owned by Bloomin.'

Moreover, according to The Sun, Bloomin' CEO also said that,

“A majority of these restaurants were older assets with leases from the ’90s and early 2000s.”

As per WSMV, he further said,

“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.”

He also stated that the business is generally making cuts and is pushing for "menu simplification."

Additionally, as per CNN, a corporate representative of the company stated,

“Closing restaurants is never easy. This was a business decision that has no reflection on the staff or their service. Many team members will have the opportunity to transfer to open positions at another restaurant. Employees who do not will receive severance.”

On the other hand, as per The Sun, it was a sudden withdrawal. Some employees said they were only given two days' notice before their restaurants closed.

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The brand is set to open other restaurants

Bloomin' Brands is projected to lose over $100 million in revenue due to the closures in 2024. According to the Associated Press, shares have decreased by 5.5% since the year's commencement. In the previous twelve months, the stock fell by almost 6%.

However, Outback Steakhouse told Omaha that it intends to add up to 18 new locations in the US this year, reflecting a revised restaurant layout that it debuted in 2022. In the US alone, the company has roughly 700 locations.

Bloomin' intends to open up to 45 restaurants under all of its names in the upcoming year.