Outback Steakhouse, once a leader in the realm of casual dining in America, continues to see its prominence wane as it closes more locations across the nation.
For many years, this Australian-themed eatery held the top spot among U.S. steakhouses, surpassing competitors like Texas Roadhouse and LongHorn.
However, recent years have seen these rivals capture the attention of budget-conscious patrons, enticing them with more affordable options, streamlined menus, and a more vibrant dining experience.
In recent weeks, several Outback venues have quietly ended their service of the famed Bloomin’ Onions, with Bloomin’ Brands, the parent company, announcing another series of closures. This includes at least two outlets in Florida, where Outback was originally established in 1988.
Bloomin’ Brands, which also manages Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar, is responsible for approximately 1,450 restaurants globally, with over 670 being Outback locations.
Elizabeth Daly from Outback stated that these shutdowns are part of a “periodic review” aligned with the company’s ongoing strategy to revitalize its operations.
‘We considered a variety of factors, including sales and traffic, trade areas, and potential investments to improve performance,’ she said, adding that affected staff would be offered jobs at nearby restaurants when possible.
The newly shuttered restaurants include two in Birmingham, Alabama — one on 20th Street North at 20 Midtown and another in Inverness on US 280 — along with locations in Jacksonville Beach and Naples, Florida; Baton Rouge, Louisiana; Silver Spring, Maryland; Merrick, New York; and Madison, Wisconsin.
Americans are increasingly abandoning Outback Steakhouse in favor of more affordable alternatives
The closures come about 20 months after Bloomin’ Brands axed 41 restaurants in February 2024 — most of them Outbacks — as part of an earlier cost-cutting effort.
Outback’s troubles have been building for years.
Once the go-to spot for affordable steaks and its signature deep-fried Bloomin’ Onion, it rode the Crocodile Dundee craze of the late 1980s to national fame.
But as inflation squeezed wallets, its $29 average check began to look steep next to Texas Roadhouse, where a full steak dinner runs about $23.
Texas Roadhouse’s stock has climbed roughly 15 percent in the past year, and LongHorn’s parent Darden Restaurants is up 25 percent.
Bloomin’ Brands, meanwhile, has seen its shares plunge more than 70 percent to about $8.
‘Roadhouse is winning because they have a much better value proposition than anybody else,’ said Peter Saleh, an analyst at BTIG.
Outback, which is based in Tampa, Florida, was founded in 1988
Known for its juicy steaks and signature deep fried ‘bloomin’ onion’ dish, Outback became popular among American diners in the 1990s and 2000s
Outback Steakhouse has shuttered several locations across the US as the chain battles plunging sales. It has launched new menus – like lobster and steak – and store revamps in an effort to revive its fading image
Outback Steakhouse was once the king of America’s casual dining scene but has struggled to keep up with rivals. Stock image of a restaurant
Mike Spanos, who was formerly the Chief Operating Officer at Delta Air Lines, was made CEO of Outback parent company Bloomin’ Brands last year
Outback’s sprawling menu and aging interiors have also dragged it down. The chain expanded heavily in malls just as foot traffic was disappearing, and its complicated promotions became hard for staff to manage.
A remodeling campaign launched in 2008 tried to modernize its image — swapping the dark, rustic décor for a brighter look — but many fans felt the chain lost its identity.
Former Delta Air Lines executive Mike Spanos took over as Bloomin’ Brands CEO last year, promising to simplify menus, refresh restaurants and improve service.
‘Outback is a great business. It’s a great brand,’ Spanos said. ‘It is a very fixable business.’
But with rivals dominating the steakhouse wars and consumers trading down to cheaper meals, America’s onetime favorite steakhouse faces an uphill battle — and fewer outposts left to fight it.
