Remember when going to Outback Steakhouse meant a guaranteed good time with friends and family, sharing those famous blooming onions and perfectly cooked steaks? Well, things aren’t looking so sunny down under anymore. In a surprising move that’s got everyone talking, Outback just announced they’re shutting down a bunch of restaurants across the country. If you’re wondering what’s happening to your favorite steakhouse, you’re not alone.
Many locations closed overnight without warning
One day they were serving up steaks and the next day the doors were locked. That’s exactly what happened at dozens of Outback Steakhouse locations across America. Bloomin’ Brands, Outback’s parent company, dropped a bombshell by announcing the closure of 41 restaurants in their portfolio, with Outback taking the biggest hit.
The closures happened in eight states: Pennsylvania, Illinois, Florida, Michigan, Ohio, Iowa, Hawaii, and New Hampshire. Some customers showed up for dinner only to find dark windows and locked doors. Even more shocking? Many employees only got two days’ notice before losing their jobs, though some were offered positions at other locations.
These weren’t just any random locations either. Most of the closed restaurants had been around since the 1990s and early 2000s, serving generations of families. For many communities, these restaurants were more than just places to eat – they were spots where birthdays were celebrated, promotions were toasted, and countless Friday nights were spent.
The sudden nature of these closures left many regular customers scrambling to use their gift cards and rewards points. Some loyal patrons even drove to their local Outback one last time when they heard the news, hoping to enjoy one final meal at their favorite spot. Unfortunately, many didn’t get that chance.
Why these restaurants had to close
The reasons behind these closures aren’t as mysterious as you might think. According to reports, these locations were struggling with fewer customers coming through their doors. When a restaurant sees empty tables night after night, it’s hard to keep the lights on. The closed locations were seeing declining sales and couldn’t justify staying open anymore.
Another big factor was the age of these restaurants. Many of them needed serious updates and renovations. The buildings were old, the equipment needed replacing, and the overall look was outdated. The cost to bring these locations up to modern standards was just too high, especially when they weren’t making enough money to begin with.
The rising costs of everything from food to labor also played a part. Running a restaurant is expensive, and when prices go up but sales don’t, something has to give. These locations were caught in a tough spot – they needed to charge enough to cover their costs but still keep prices reasonable for customers.
Many of these restaurants also had old leases from the ’90s and early 2000s that were coming to an end. When it came time to renew, the numbers just didn’t make sense anymore. Between higher rent costs and the need for major renovations, keeping these locations open would have meant losing money month after month.
Changes in how people eat nowadays
The way we eat out has changed a lot in recent years, and Outback has been slow to catch up. More people want takeout and delivery options these days, but many older Outback locations weren’t set up for this. Their layouts were designed for sit-down dining only, making it hard to handle the increasing demand for to-go orders.
People’s eating habits have also shifted. Many folks are looking for lighter options or want to know where their food comes from. While Outback is famous for its steaks and rich foods, some customers are now looking for more varied menu choices. The traditional steakhouse model isn’t as appealing to everyone as it used to be.
The rise of food delivery apps has changed things too. Now people can order from almost any restaurant without leaving their home. This means Outback isn’t just competing with other sit-down restaurants anymore – they’re competing with every restaurant that delivers to your door. The older locations weren’t designed to handle this new way of doing things.
Even when people do go out to eat, their expectations have changed. They want modern, updated spaces with good lighting and comfortable seating. Many of the closed locations were stuck in the past, with dated decor and worn-out furnishings that didn’t match what today’s customers are looking for.
Money problems behind the scenes
While some Outback locations are doing fine, others have been struggling for a while. Sales dropped by 0.3% in the last quarter of 2023, which might not sound like much, but in the restaurant world, any drop in sales is worrying. When you’re trying to keep prices reasonable for customers while costs keep going up, even a small dip in sales can cause big problems.
The restaurants that closed were losing money and showing no signs of turning things around. Keeping them open would have meant spending lots of money on renovations and updates, with no guarantee that customers would come back. For a big company like Bloomin’ Brands, it made more sense to close these locations and focus on the ones that are doing well.
It’s not just about the day-to-day costs either. These older locations needed major work – new kitchen equipment, updated dining rooms, better parking lots, and more. When you add up all these expenses, we’re talking about hundreds of thousands of dollars per restaurant. That’s a huge investment for locations that weren’t bringing in enough money to cover their basic costs.
The timing of lease renewals also forced some tough decisions. When a lease ends, it’s a natural time to look at whether a location is worth keeping open. With many of these older locations, renewing the lease would have meant committing to several more years of operating a restaurant that was already losing money.
What this means if you have gift cards
If you’ve got Outback gift cards sitting in your drawer, don’t panic. They’re still good at any open Outback location. But it’s smart to check if your local restaurant is still operating before making plans. Some people found out their local Outback was closed when they showed up with gift cards in hand, ready for dinner.
The company didn’t give much warning about which locations would close, which left many gift card holders scrambling. Some people rushed to use their cards as soon as they heard about closures in their area. Others weren’t so lucky and now have to drive further to find an open location.
For those who collect rewards points through Outback’s loyalty program, those are still valid too. But if your regular Outback location closed, you might need to travel further to use them. The good news is that with about 700 locations still open across the country, most people can find another Outback within driving distance.
If you’re not sure about your local Outback, the best thing to do is call ahead or check the restaurant locator on their website. This can save you a wasted trip and help you plan where to use your gift cards or rewards points. Remember, these are still valuable – they just might require a bit more planning to use now.
Plans to open new modern restaurants
Despite all the closures, Outback isn’t giving up. In fact, they’re planning something big. The company plans to open up to 18 new Outback locations this year alone. These won’t be the same old restaurants you remember – they’re designing completely new, modern spaces that fit how people eat today.
The new restaurants will be smaller than the old ones, but they’re designed to be more efficient. They’ll have dedicated areas for takeout and delivery orders, which is something the older locations struggled with. The dining rooms will have a fresh, updated look that’s meant to feel warm and welcoming without being stuck in the past.
Technology is a big part of these new restaurants too. They’re adding features to make ordering easier and service faster. This includes things like better systems for handling online orders and making sure takeout customers can get their food quickly without disrupting the dining room experience.
These new locations are being carefully planned. Instead of just replacing closed restaurants, Outback is looking for spots where they think they can really succeed. They’re focusing on areas with the right mix of homes and businesses nearby, good visibility, and easy access for both dine-in and takeout customers.
Changes coming to the menu
Outback knows they need to keep up with changing tastes, so they’re working on updating their menu too. They’re trying to find the right balance between keeping the classics that everyone loves while adding new options that might bring in different customers. The key word here is “simplification” – they want to make the menu easier to understand and order from.
They’re also focusing on value, which is super important right now when everyone’s watching their spending. They’ve introduced a $14.99 three-course meal to give people a filling dinner without breaking the bank. This kind of deal helps them compete with other restaurants while still serving the quality food people expect from Outback.
The kitchen side of things is getting streamlined too. By making the menu simpler, they’re hoping to speed up service and make sure every dish comes out just right. This means focusing on what they do best – like their steaks and popular appetizers – while maybe letting go of some items that weren’t selling as well.
One thing they’re not changing is their commitment to quality, especially with their steaks. They know this is what built their reputation, so while they might add new items or change how some things are prepared, they’re keeping their standards high for the foods they’re known for.
Some states now have no Outback restaurants
Hawaii lost its last Outback location with these closures, and other states are down to just a handful of restaurants. This means some people who’ve been going to Outback for years now have to drive much further to get their favorite steaks and sides, or find somewhere else to eat.
The impact isn’t just about losing a place to eat – these closures affect whole communities. Many of these restaurants employed dozens of people, hosted countless celebrations, and were part of their neighborhoods for decades. When they close, it leaves a gap that’s hard to fill.
For the states that still have Outback locations, the remaining restaurants might get busier as people who used to go to now-closed locations look for alternatives. This could mean longer wait times at peak hours and more difficulty getting reservations for special occasions.
The company hasn’t said whether more states might lose all their locations in the future. For now, they’re focusing on keeping their strongest restaurants open and looking for spots to build their new, updated locations.
What to expect at remaining locations
If your local Outback is still open, you might notice some changes. The company is working hard to improve service and keep prices reasonable while dealing with higher costs. You might see new menu items, different specials, or changes to how they handle takeout and delivery orders.
The good news is that the remaining locations are generally the stronger performing ones, which means they’re more likely to stick around for the long haul. These restaurants might also get some updates and improvements as Outback invests in making their successful locations even better.
You might also notice more emphasis on takeout and delivery options, even at older locations. This is part of Outback’s plan to keep up with how people want to eat nowadays. They’re trying to make it easier to enjoy their food at home while still providing a good experience for those who want to dine in.
Wait times might be longer at some locations, especially if a nearby restaurant closed. It’s a good idea to make reservations for busy times like weekend evenings or holidays, just to be safe.
Despite all these changes and challenges, Outback Steakhouse isn’t going anywhere – they’re just going through some growing pains as they figure out how to stay relevant in today’s world. While it’s sad to see so many locations close, especially ones that have been around for decades, the company’s plans for new, modern restaurants show they’re thinking about the future. For those who love their steaks and famous blooming onions, there’s hope that these changes will help keep Outback around for years to come.
